Virtual Session: Blockchain Security: An Improvement or a Nightmare?

hello and welcome to this RSA Conference virtual session on blockchain security and improvement or a nightmare I am your host Rena Dobbins of RSA Conference during the session all participants will be in listen-only mode at the close of the presentation we will conduct a question and answer session throughout the presentation if you have a question please use the chat feature which is located in the lower left corner of your screen as a reminder this session is being recorded following the session you will receive a follow-up email containing a link to the video replay the replay will also be posted to RSA Conference comm today’s presenters are Marta Pierre carska director of ecosystem at the Linux Foundation and Dave whose be hyper ledger security maven at the Linux Foundation I would now like to turn it over to Martha and today to begin the session thank you and to welcome everybody we really appreciate you showing up this will be a talk that is an improvement and extension of the total that we gave during our RSA Conference in San Francisco and it is our pleasure to to present it to you as mentioned my name is Martha Carson I’m director of ecosystem for hydro Ledger’s I have CV and user informed design of privacy tools and from computer science in a Technical University of Berlin I have about 10 years of experience in technology companies like Apple Yahoo and Deutsche Telekom they say that you should calculate 15 years just like some peers so I guess I’ve seen 40 years in boxing but to be honest I’ve been in this space for four years and I still don’t understand half of the things that are happening it is very new and very exciting today would you introduce yourself yes good morning everybody I’m Dave qz I’m the security maven at hyper ledger also part of the Linux Foundation I work at hyper litter and chart as being in charge of all of our security related things with our blockchain platform so I run on bounties and our responsible disclosure program I instruct our development teams in software engineering best practices I’ve been in software engineering software space for many years many more years and I’d like to remember and blank Mart died but his blockchain since the very beginning I’m an early Bitcoin er and I – I’m still baffled by a lot of things that go on you know it’s very interesting King how rapid this industry is developing so Martha would you like to start in on the presentation absolutely so we’ve said that we’ve been in the blockchain space since the beginning well actually we haven’t we have been exchanging goods for years the first long-distance trade occurs between Mesopotamia and in this valley in Pakistan around 3,000 years before Christ so neither me nor Dave are dead old well maybe we’ve been social animals for very long time we’ve been exchanging goods exchanging assets in order to survive but always the question has been how do you agree on assets balance so how do you track the value of exchange booth if I gave the base price fish and he would give me two breads and then I would like to exchange this to bread with grana for a car for fish then I would be not doing Sara things and everyone should know about that so traditionally we use Ledger’s Ledger’s are just like books that keep track of who owns what and for how much did they buy it or how much they need for it however we then move to the digital world and individual world there are many copies of the same that might contain different version I’m sure you all have tried downloading a movie or copying a file and then changing something in the file so the challenge is how do we agree what is the common source of truth would you version is the real version well we came up with the internet and Internet has enabled us to create a peer-to-peer network where we all keep a copy of that ledger and we all can exchange that ledger and then we can keep our letters and think whenever something is changing of course for that we need to agree on what is that very thing that we should be agreeing on and that’s where it’s incentive mechanism comes into play and the rich of this con have our load leaders and so forth size and fast movement so it is really really old cypherpunks has started in the 1990s in fact blocking the underlying technology is even older and we have to understand that blockchain is not cryptocurrency blocks cryptocurrency is an application that sits off salt on top of the blocks not the other way around first mentioning of blockchain as technology and an element of it has we’ve seen them in papers published in the 60s so it is a really long time what is it receivable ledger technology reading so that underlying technology it is an append-only system of record or log of transactions that is multiplied in a number of places but kept in sense so it is a distributed ledger there are certain properties that make a ledger distributed ledger special first of all of course everyone share them and no one participants only right so there is no one central authority to distribute this we have a peer-to-peer network and we all agree on on that letter it leverages cryptography and consensus mechanisms and that’s what this is also something that changes between distributed measure and distributed database or ledger like systems that are not actually distributed ledger technology most importantly no single entity maintain the whole network there’s maintained the whole network validates months maintains and keep the copy of that database so really it is just a chain of blocks I’m sure you’ve seen that these type of graph before what we want to show here is a very important part which is that every single page of that ledger is connected to the previous page by a block rack and this gives very important first property into the whole blocking space it is vitally important because if we change something in history so if you change something in that block first block on the left-hand side the hash of the whole block will change which means that the block that is next to it will no longer point to divide it into the right directional points to nothing and the information that someone who is trying to change the history will be possible propagated throughout the whole network there are several features of shared measures that are important and that’s why we are all excited about it first network notes both generate their own data and verify data generated by the others they contain historic record of verify transactions and they are very easy auditable it is important that there is no central repository as I mentioned because each node can store identical copy of the ledger we agree on that led to that copy through a distributed consensus that eliminates coffee and is delicious inefficient because creation there are larger economic disincentive disincentives for malicious actors and the network’s the whole network is retirement due to the cryptographic integrity and the power of it but there is more as we proceeded with a blockchain and as we proceeded with developing more and more solutions we have seen an edition of smart contracts and I’m sure you’ve all heard about smart phones this is very simply put any code or complex program that is stored and executed on a block so instead of putting the record of transactions and attestation to what has happened we put a code that executes and this is important because that way we can facilitate verify or enforce the negotiation or performance of the contract in an autonomous way it is kind of like an if-then statement or when X happens then automatically record or existed while this really reinvent how business processes take place and allows for automation or bespoke processes and there you look for clues here and the most important part is it’s all over the market at the global market there are Ledger’s as that organizations and individuals must trust a lot however if we look at the Edelman Edelman Trust Barometer by which is an annual survey of about 33,000 people in 28 countries we’ve seen year-to-year decrease of trust and that trust and key institutions it’s dramatically technologies for blockchain we really think that twelve six thousand anything needs to be the year of scale of scale done well something that we can trust but we know how it’s happening and this is reconfirmed by many of the publications have been done World Economic Forum’s predict that by 2025 10% of global GDP will be assets tracks and price using traders within blocks in base attributed ledgers 10% that’s massive but this is a safe that is very very complicated and very messy in many ways so it is hard to understand everything so this is why we put together here I think it’s one of my favorite slides in the presentation 25 words and I promise you all that if you google these words if you remember what the acronym means you will be able to understand much more from that space and much more from distributed lettuce you’ll be able to have a very clean conversation about blocking and when people throw a block gain use you will understand more is that their usage is valid but no matter what technology we use if it blocking or blockchain or not softest security should always be in the center of your attention since without security you don’t have privacy and you don’t have trust and I think they is your turn now Thank You Martha thank you for that history and background and the scope of how important blockchain technology is so let’s now dig into the security properties and try to answer the question whether blockchain is of security improvement or security nightmare and I think with all things it’s a little of both what makes watching so important in today’s environment today Internet is that it’s probably the most novel and interesting arrangement of disparate technologies that we’ve had for long time strong cryptography hashing trees like Merkle trees read or write only data structures like the blockchain those were all of those trace their roots way back into the 60s and 50 60 70 even 80 s distributed systems research gave us all of the transport security and consensus protocols secure data transmission gave us the merkel route and more cryptography securing data in databases gave us the blockchain but it took Satoshi in 2009 to finally find the best way to stack all of those together and to create an incentive structure that build a system that transmits trust better than any other system we’ve ever devised now computer revolutions happen when we decide to take something that said human scale and bring it down to the computer scale and what I mean by that is the web takes books and libraries and just information in general something we used to have to go look up you know at a university or library and we brought it down to computer sighs computer scale and now it’s all we need is a computer to access all that data things like email scale down real mail and now what we’re seeing with blockchain is that we’re taking the human trust system and scaling it down to computers we have a combination of digital signatures plus cryptographic identity plus decentralized Authority all coming together to create a system that allows us to transmit trust and to execute contract code or meet you know smart contract code automatically and consequently the revolution is happening because of this innovation so like the previous slide said security is actually imbued in blockchains from the very beginning and is probably its most important characteristic but it represents a fundamental change from the way that we have handled credentials Authority and security and computers just the very beginning all the way back in the 50s actually since the dawn of multi-user computing which was probably in the late 50s early 60s and we started having time sharing systems the authority for access to any computing resources always been centralized there’s always been a system administrator and later there was what’s called an access control list so a piece of software that you would have to submit a username and password to and if you wanted to read a file the file system would check that and see if you had access to the file and then with remote systems like the internet and dial-up systems we had projected that same paradigm into that new space and we still even to this day I mean you log into Facebook right it’s all ready to log into Facebook it centralized can you imagine if it were possible to log into Facebook by just signing assigning a some kind of packet with your digital ID like with your private key and sending it to Facebook and because Facebook knows about your public key they just like you in like there’s no user name and password like log in is just automatic because you possess certain key pair well that’s what blockchain presents that’s that’s how they work we’re moving from this old access control list centralized authority to a new decentralized Authority which goes by the name of capabilities now there was some innovation done in the 80s mostly by David Chum but some others contributed as well that instead of handing out virtual tokens we could just use public/private key pairs as the capability so the bearer of that capability could then access a resource it’s just like possessing the key to your card if you have a key to your car you can get into the car you put the key in the ignition you turn at the car start the same is true for botching possession of these keys is also gives you the right to do all of the actions on the blockchain and block in Bitcoin and other cryptocurrencies that’s the capability to transfer coins or more specifically the capability to sign a transaction that gives another address the ability to to spend those the problem is when you decentralized Authority you have to give the end-users a way to store that authority and our solution at this point has been the wallet application and I remember when I first started with Bitcoin there were no wallets it was really just a file with some private keys and I had some scripts that I ran to manually generate a transaction and then digitally sign the transaction and then submit the transaction to the network but today we have these wallets but I don’t know that they’ve improved much more than just put a nice gooey wrapper around it and there are a lot of security issues with this so let’s move on and take a look at this the market has responded to the difficulty of all of the wallet application by providing or creating centralized services we’re seeing the rise of the crypto exchange where you can have an account and all of your keys are stored on the crypto exchange and early on the security of those was terrible I mean we had mount Docs and we’ve had other breaches we’re getting into a server got you gave the attacker access to all of the private keys but we’re getting better with multi-sig and with HSM so hardware security modules storing master keys and things like that but even with the improvement in our server security we’re still seeing large numbers of massive breaches this slide here talks about the Bitcoin graveyard and actually I think it’s the blockchain grade here now they’ve renamed it because it applies to all cryptocurrencies not just Bitcoin and they keep track of all of the large breaches of cryptocurrencies now they haven’t had any for enterprise blockchain yet so they don’t talk about stealing any identities or any other data or assets being tracked by more Enterprise blockchain mostly just cryptocurrencies but you can see here that the server breach column and an insider attack should not have happened if the akima escrowing was managed properly a cloud account takeover again even with it and a takeover of your servers your key materials shouldn’t be accessible in that way we don’t we have a whole column here of unknown and then we’ve got protocol related so just notice that like app vulnerability unknown and protocol related represents a minority of these breaches the other ones are server breaches so the markets response to the bad wallets it’s decentralized is they ownership with these private keys and it creates the two honey pots that actors have been attacking and so I’m not sure that that’s really an improvement either in this case I would say this is a security nightmare I would I would be very reluctant to trust my Bitcoin private keys to a central repository even though I know they dedicate a lot of energy to the security we keep seeing repeated server breaches all over the internet so if I knew that if I let’s say I had a bunch of gold and I could only store them in bank vaults and I knew that bank vaults were readily being robbed you know I would be nervous and same goes for cryptocurrencies so knowing that wallets are not the greatest solution and centralized exchanges have been having breaches and probably aren’t the best solution either what can we do what is it up to like the hyper ledger community in the Bitcoin community what can we do to try to make this more widespread and have better security properties of course the first thing we can do is just catch the rest of the world up writing good documentation and training providing nice and consistent support is always going to be the first step it’s how our society handles people driving cars you can’t get a driver’s license without going through some education now I don’t think we should have licensing for cryptocurrencies I guess that’s a bad analogy but maybe we do need to have better education and I see that there’s a lot of it going on in YouTube and there’s a lot of articles being written and there are some good books but we haven’t settled down into you know the five rules of cryptocurrency something that someone can easily memorize that would give them the key to function safely and efficiently in blockchain world I know that it in an open-source industry in the open-source community it’s always been tough to get good documentation training and support mostly because the software moves so quickly and blockchain is probably the fastest open-source software movement that I’ve ever seen it’s gone from nothing to everything in just a few years and so the documentation is lacking to say the least the next thing I think we should look at is what I call it conversational a lot of interfaces and this is something that Apple has mastered a lot of people hate Apple for this but a lot of people love Apple for this if you pay attention to the way they design their software they tend to hide extraneous details whenever you’re doing a multi step operation I think that wallets could improve in this regard I think a lot of UI research needs to be done but probably the easiest improvement would be to ask the user what is it you want to do they select I want to transfer bitcoins you click that or they click that and all of the extraneous details are hidden and each relevant question is asked in turn and walks them through the process of generating a transaction it’s not a very complicated change to the wallets but would vastly improve say basically the misuse capability of the wallet this is misuse resistant design it’s building the tool to prevent the user from misusing it its nurturing up a wallet basically and then on the development side we could focus more on and I’m talking to the software engineers in this in this crowd we can focus on api’s with minimal foot guns this is also a key point of misuse resistant design where the API functions don’t do multiple things so you want to do one thing at a time and if you call them in the wrong order but the library catches it a really good example of this is the Lib sodium library they’re resistant misuse resistant design is top-notch if you call functions out of order it throws errors and does a very very good job of preventing a programmer from doing things in the wrong order and then of course the next thing to do would be to start establishing standards and the one standard that applies to what I do every day is creating a curated crypto library the hyper ledger crypto library is a new project it’s an actual lab right now but we’re hoping to make it into a full-fledged project in the future it’s actually going to be a thin wrapper layer around existing cryptographic libraries we want it to be a curated list by the community and by the maintainer xand participants in this project we want to include all of the well-known and time-tested libraries and set those up as sort of grade a libraries that are in thought that are in the crypto library and then also provide room for experimental algorithms so that we can test new features like zero knowledge proof sand things like that so the goal of this is to provide a simple configuration setup for the library that also has presets for regulated configurations like fifths standardization or you know if we can get cooperation from Chinese developers to bring in China approve photography into this library we can provide China you know government approved configurations for this as well the ultimate goal here is to abstract out the underlying cryptography or the entire the cryptography underlying our blockchain platforms so that deployments of hyper ledger block chains can be crypto algorithm agile not only does this make it easy to get our software into many different environments but it also makes this agile going forward if someone comes up with say a pre-image attack against sha-256 we can do on chain configuration and switch algorithms on the slide the biggest one here that I’m looking at is what happens in the post quantum crypto era how do we how do we not lose our existing block chains when that happens so moving on one of the biggest things that so to sum up sort of the misuse resistance design yes so far what I’ve talked about has been security nightmares difficulties that are being brought to that are new to us but what I’m going to talk about now is that we shouldn’t panic about it people are catching up people are learning misuse resistant design is now becoming the norm in the cryptographic community and since block chains are built on top of cryptography I expected to percolate up through the blockchain platforms and all the way to the wallet I was hoping that at some point we would have a moment very similar to when Steve Jobs brought out the iPhone and held it up and said don’t use a stylus or keyboard just use your finger and we all slapped our foreheads and said wow why didn’t we think of that before I really hope that somebody comes up with that for wallet design here soon so that we can all go Wow why do we think before and our security properties and our user interface and everything gets suddenly better now moving on to the organization of a blockchain I brought this slide because I want to show that there’s a lot of moving parts you have a bunch of clients who submit transactions to bunch of peers and they do their logic and share them and then the the validated transactions get moved on to the consensus network now this applies not only to Bitcoin where the peers and the consensus network nodes are one in the same but it also applies to all enterprise block chains and all public block chains like aetherium they all have roughly this architecture now when you want to merge this into your enterprise this looks really complicated and it looks like it has some bad security properties but if you step back and you squint and you turn your head sideways you can start to see that it’s actually organized into what we’re normally used to I mean it’s not more complicated in modern web you have sort of the front-end and people are able to submit transactions and you have your middleware which would be the transaction validation and then the backend is your consensus network I like to put this slide up in front of a lot of pieces and system administrators and enterprise security types because this is where they go oh oh I know this I know how to do this okay we put firewalls here we put these servers on this kind of hardware we put these servers on that kind of Hardware you know we put denial of service attack prevention at this point you know between front front end and middleware firewalls everywhere all that stuff so this is where I see a lot of head start nodding a lot of shoulders relaxing this actually shows that the blockchain no complicated are actually going to improve a lot of things because it’s imbued by it within cryptography and viewed with cryptography from the very beginning we’re not retro actively adding it I mean even to this day the best way to protect data and say like a Postgres sequel database is to just select to encrypt the whole hard drive that it’s on there’s no real built-in cryptographic integrity checks or signing or anything like that into traditional database system so blockings are actually bringing that to us so to sum up what I was saying you know is it a security improvement or a nightmare it’s a mix of both and what the things that we do know are the basic security matters still right we’re moving so quickly and we’re moving from a traditional centralized system to a decentralized system that the biggest fall out here the biggest nightmare is the users are just not ready for this and we have a lot of work to do to try to improve that but the same techniques apply as in the old world we can deploy these blockchains enterprise block chains in particular into existing enterprise infrastructure by breaking them up into the traditional three-tier system or into your system right so the most important thing here is to not panic and to pay attention to where we could do better so if you’re trying to do an enterprise block enterprise block chaining your enterprise know that you’re going to need a good solution for managing keys and you’re going to need good training for all of your employees or managers of the system that will need to interact with this system and you’re also going to need to have a way of escalating those keys to do your audit and to stay on top of your security once it’s set up so I think at this point I’ll hand it back over to Martha to talk more about how it will impact business thank you David yes as they’ve been mentioned there is a lot that we can learn and a lot that we can reuse and many gods you probably wonder where we’re going what where will we get to we think that doctrine promises the way this business is conducted and transactions are executives across industry but if you think that we are here to tell you that – that you will win it all or cerium will win it all and we’ll end up with one master loitering on blockchain I don’t think this is the case the way that we need we have different use cases and different use cases mean different solution blockchain is just the technology and this technology has to vary from use case to use case and there is a spectrum of blocking technology if you look at two axes on one you could say it’s permissions versus permissions so looking right through a blocking what is the accessibility model can anyone access it or can only certain people joined up networks on the other hand you have public versus private who can read from the blockchain the visibility of it the preview of transactions or data and there is a reason why we have various permission less public networks are very good for cryptocurrencies because you want everybody to use your cryptocurrency you want everyone to use your token on the other hand you have the permission private networks where for instance if you think about medical records you want only certain people to have access to that network to be able to put your health care information on that network and only certain people probably you and your doctors to read that data it is not feasible to expect everyone to share all medical records with everybody and then there is the middle self you have permission public networks these are great when you think of certification on land title’s once worth as only certain people can issue information on the blockchain but anyone can read that information and it is still early days the production industry curve showed that financial technology was definitely and big in the raiders curve that there is this is where we had the most companies jumping on healthcare supply chain I would say there are models adopters we are slowly seeing some PLC’s maybe early deployments but there is no such group as late majority and rocking it’s still too early so if someone tells you that you’re too late into the game you’re not you’re still on time and you still have opportunity to develop with blockchain learn about it and maybe say that you don’t want it but definitely there is a space and time for you in this industry but obviously not all problems can be solved by was locking I love this xkcd because it shows the perspective of positive technologists that want to solve all the problems with technology but then there are problems that can’t be solved with that particular technology even if it’s new and shiny blockchain is no fairy dust that can be sprinkled on your solution the technology is young it is still very early days and we find out how to collaborate there are challenges that we need to solve ok please tell us about that Thank You Martha so the biggest challenge with law changes that their real value comes when lots of participants across an industry either horizontally or vertically or both come together to automate and accelerate a business process so supply chain is a good example or for a vertical international banking is a good example for horizontal the difficulty here is that enterprises forever have always been designed to not collaborate it’s always been around protecting their intellectual property protecting their business processes their data their good services all of that they their castles on a hill with moats around them and now we want to link up those so then have them cooperate so there’s a lot of questions that are being answered right now and a lot of people exploring options about how do you build a enterprise blockchain with multiple participants that still respect and protect the participants intellectual property and while enabling the level of cooperation they desire can open-source help well open-source obviously is a big help I mean all cryptocurrencies to the state are open-source projects I don’t think I know of a single one that’s completely proprietary but I could be wrong I think having the development and the direction of these block chains is very important for adoption I think it really allows enterprises to come at this with our eyes wide open and it also allows us to mix and match I know that at hyper ledger we are driving towards interoperability I’ve seen demos of high-quality indie being the identity piece for hydrologic fabric installation we’re now seeing hydrology burrow which is our Assyrian virtual machine implementation being used as a smart contract validator in hydrology Sawtooth so at least at hyper ledger our open source nature has allowed us to multiply the solutions that we can provide by driving towards interoperability so why why would you join a blockchain consortium well as every Enterprise has to answer that for themselves however we’re seeing a lot of efficiencies being gained when you do join a blockchain that allows you to automate things like your your supply chain or the paperwork that’s necessary to run between businesses like international banking where they have to do clearing and reconciliation we’re seeing applications in land title’s and house home sales and car sales all of these things which have traditionally relied on trust with escrow lawyers and notaries public things like that they are a natural fit for a blocking which provides the same of trust capabilities and brings all the paperwork and processes down the computer scale so if you feel like your enterprise or yourself would benefit from that kind of thing then it’s the right thing for you but make sure that you understand that you’re moving away from the centralized security to a decentralized security and be prepared to put into place all of the standard operating procedures around protecting your private keys and protecting your access to the network so which charting technology would you choose well again that also depends on the application I think if your goal is to provide a public service a lot of people would automatically say go on a public network but I don’t know that that’s really true we’re seeing the sovereign foundation building a public utility for identity that is not built on a public network and that’s going to be public utility it’ll be available to public users I think the difference is that the users don’t participate in the tokenization of it there’s no real tokens that go around between users so it really does boil down to its application and understanding the properties of it the same decentralized difficulties still exist though because participation requires management of states have private keys and that that is still an unsolved problem there is a ton of solutions and we’re sort of making moves in the direction of best practices but again we still haven’t had that Steve Jobs moment where we can all rest easy and know that our private keys are being protected I’m see as securely so the importance of being earnest about this is this slide here is really just to say like yeah it’s okay to be excited about blockchain but we need to be realistic about it too I’m not trying to rain on everybody’s parade this is awesome I love the innovation and the speed in which we’re all going but these are distributed networks and they have real security issues like for I distributed denial-of-service attacks are still a thing if your consensus nodes say like all the Bitcoin nodes are accessible and can be DDoS there’s a potential that there could be a significant impact on that Network the same is true for Enterprise washing so you still have to you still have to go through the normal steps of protecting any Internet service but then you also so you know that that’s a neutral security property of blockchains because we have to do that with all other services anyway but then you have the addition of smart contracts now they actually have a really great security improvement in the fact that all of the steps and smart contracts are cryptographically signed and there’s auditability and traceability and if your smart contract language is written correctly it’s also predictable and deterministic but again they’re written by humans and we know from the entire history of software development that if software’s written by humans there are security clauses and sometimes very obscure ones I mean just recently we saw security flaws that were decades old being found in some open source project and to think that smart contracts written in like the existing smart contract languages which are turing-complete languages for the most part to think that they’re going to be free from flaws is is just naive there are going to be floods and we’ve seen hacks based on flaws and smart contracts before and we will continue to see them so you know I I would implore our community to design smart contract languages that are not Turing complete and therefore fully deterministic but we haven’t seen anything done in production yet so again it’s going to be a mix is it better or than a nightmare it’s a mix although I think that the photography from the very beginning means that overall it’s a general improvement on the way things we’ve been doing or the way we’ve been doing these so now I’m going to hand it back over to Martha to talk about some actual real-world examples of deploying blockchains in the real world thank you David I will try being brief us that we are running out of time as we’ve all talked full of information I would I wanted to show you our three examples because from what we see today blocking can either become a part of your solution and really doesn’t mean that we improve security anyway quite offices it brings new attack surfaces and new attack vectors and we have to reevaluate our solution based on the fact that we are adding yet another technology to it on the other hand there are also places where blockchain can be used to really improve the security so let’s start first is a new state from change healthcare is exchange healthcare where the change healthcare company created a claim of network where all the claims are processed and the blockchain is maintaining real-time and mutable record of claim lifecycle if you look at this system you will clearly see that blocking is used as an application mechanism but you still have to make sure that the way that the claim is submitted is valid the DES claim itself is valid you have to audit it then you have to protect the players and look at how players are storing information of course on servers or you have network components the red round thing that says claims claims network countenance has to be secured the blocking component needs to make we need to make sure that they directing the right way so all of these elements are very important and Bach team does not introduce security here it means that we need to protect boxing protect servers and protects the network even more on the other hand there is a secure supply chain solution that Tallis Accenture and Chronicles implemented and it’s a very interesting one where Accenture integrated the technologies that were deployed demonstrate how blocking and smart contracts can be used by OEMs and suppliers to verify the authenticity and security of these companies and products in the supply chain vent Alice brought in their part looking at how many products today are hardware and software based using FPGA models they have introduced the air talent IP to enable the registration and validation of this if FPGA modules were blocking and they are using physical and valuable function comes capabilities that allows you to obtain a unique identical identity for the silicon chip using that and Varys Cochran a finally chronicles brought their part well they can for the suppliers that secures batches of product values and crypto seals their products and these provided here in tamper proof mechanisms for the OEMs and suppliers to provide components meeting the specification of order and record attributes on the blockchain to enable rapid release creation and cover filling downstream what is important here that it really shows the authentication authorization and auditing of scale it allows for a very wide spectrum of security stations per article identity attribution and unique privacy preserving our auditing it allows us to quickly detect anomalies during the regular courses business and transcendence beyond the after-the-fact investigation it provides confidential transactions Cerreta kundan onions ability so this really is reinventing how we think of secure supply chain or supply chain where we need security and logging is a core component reserves to it and then there’s the third usage and I love I will let today briefly introduce it because this is something that is very interesting and shows a combination of – yeah Thank You Marta so I am going to try to be brief because we are running out of time this is actually a lot of fancy words so it’s a flow diagram that was put together by a member of the IBEW ledger community the founder of Sarah that shows a demonstration of using a blockchain to do capabilities management or yeah capabilities management in a centralized way so he actually demonstrated this and won some awards some hack fests where he was hyper ledger fabric to manage the lifecycle of users in a system so this actually presents the bridge between centralized ACLs and decentralized capabilities so he actually uses them for registering users and when they log in there were transactions fall on that and then issuing their capabilities tokens after logging in all that stuff so it centralized the management the escrowing of their keys to emulate the ways access security list normally work and this actually helps existing enterprises bridge from traditional centralized systems to the essential assistance so moving on what’s left to be done I’ll go over these real quick there are some easy things you can do at least for the hybrid community you can report any bugs security bugs we do have a bug bounty I really really would love to have more people participating in it it’s over at hacker slash hyper ledger we are paying out bounties for people who report security bugs we have a number of working groups for industries and four different aspects of blockchains we’d love you to get involved with and then all obviously this webinar will be recorded and uploaded and there’s a ton of other webinars and education material produced by hyper ledger now the hard stuff well this I’m actually really excited about this year’s Def Con an independent team that I was totally unaware of demonstrated a tool called teeny Ola which is a red teaming tool for testing hybrid fabric they actually demonstrated some active scanning and active live attacks against fabric from a from a privileged Network position and it turns out that it’s really good for doing security audits and fuzzing of actually running fabric instances so if you really want to get involved in your talented developer or security researcher I would love to see more of this kind of stuff and with that I guess we have a little bit of time we can take questions now however I think the the best way to do this might be to collect questions emailed to us and then we can respond in a blog post if we don’t have enough time to talk about it here so at this point I’ll will hand it over to QA and wait hold on before we do that I wanted to also put this slide in here too for the recommended reading so these are all some very interesting stuff that follow up on offline after our talk so with that I think we should go to keep the questions if we have time to answer oh yes the slides will be available offline sorry so we have a couple questions that came in no worries during the presentation the first from Robinson I’ll just read them for you guys Dave and Martha what are the anomaly or signature-based threats we may encounter in blockchain tech since no system is guaranteed of no loop of errors in due time oh I would say the biggest the biggest is going to be misuse of the existing technology like generating public private key pairs in rectly like we’ve seen a number of blockchain addresses that were had predictable private keys I think not protecting your private keys correctly that kind of stuff I think when we get the smart contract obviously there’s going to be a lot of problems with that and again it’s really just protecting your secrets we’re still really bad at that people’s Twitter accounts and Facebook accounts get hacked all the time because people use dumb passwords and or if they don’t use dumb password like their their password reset systems and stuff are not set up correctly so those are the most common failure modes it’s unfortunately rests on the end users mostly deploying a blockchain and securing is not very difficult it’s actually securing all the participants great equipment from so go ahead Marta I think the follow good follow-up is Jeanne is asking what is the biggest security challenge for protecting video digital wallet I will let you enter that mostly Dave but I would say it’s how to create visual wallets are usable and easy to handle so that we can actually make them user friendly because no matter how important the secure or how secure we make them people will break security and that such as if on the the next question which is from Richard what about key recovery for end user identities this is one of I think the biggest challenges today with mobile with digital wallets yeah so it’s really just the fact that end users are typically bad at protecting secrets and wallets are getting better but they haven’t adopted sort of like the Apple style of design where the misuse resistances is the ultimate design goal so yeah I it’s really just coming up with a sound strategy and I don’t and there are some documentation on this in the Bitcoin world about having cold wallets and hot wallets and all that kind of stuff but I don’t think it’s been permeated out to the broader Gestalt on the internet I just don’t think most people know what the good strategies are for this and this applies to enterprise blockchains as well because they use similar security models you know you still have private keys and you have to protect all right next question Brenner sure there’s a question here from Stefan what about dependencies internet connection bandwidth computing capacity etc and he gives the reference to remember the cyber attacks against the Baltic countries in 2007 and 2008 as an example yeah so typically bandwidth requirements for votchin’s is pretty low especially if it’s like what public one like Bitcoin or something but Enterprise watching typically have higher bandwidth requirements and latency requirements for their consensus mechanisms because they’re not based on the fair lottery hashing system they’re they’re based on older consensus mechanisms where there’s voting a leader and in verifying the leader vote and all that stuff so they typically involve more round trips and are more sensitive to the networks I also see there’s another question here about elaborating on DDoS threats bla chains so I’m going to loop lemon up I’m going to lump both of these together the these are decentralized systems they’re just distributed systems so they can be DDoS even Bitcoin can be DDoS and the idea that a lot chains the distributed Ledger’s are more resistant to DDoS is only partially true yes you have a copy of the data and all the nodes and so if you have some set of nodes taken offline you can recreate the network at a later date but they are decentralized systems and they only function if they can talk to each other so if there’s a way to knock off communication to you know some or all of the nodes in one of these networks you can take them offline and there are other DDoS attacks too like filling the men pool with a bunch of dust or you know I think we saw another one the other day against aetherium where that someone had managed to create a small contracted like that built up a whole bunch of gas I you know like there’s all kinds of different failure modes that can be achieved by misusing the system as designed so yeah they’re better than traditional systems that are centralized where you only have one target you know it spreads out the risk but they do require communication to function so if that communication can be severed the system stops functioning or functions force all right next question um I see here a question that maybe is worth addressing there is no real identity associated with blockchain how accountability will work with law change um well there are several things here one is that you remember that slide where we talked about permission versus permission last system were the permissioning course a bit like bouncer in a bar where you know that if you go to a bar everyone has been ID’d there and has over 21 so you will get alcohol in the bar without being repeatedly asked for your ID you are already over 21 and it’s okay however there is still accountability because we know that there are people on that volcano who can detect the ones the malicious nose to a certain degree so there is a accountability we know surges – especially with permission blocks change certain aspects of the identity and if there is a need for very high accountability we could create a network where there is a real identity connected to – that digital one I’d like to jump in here and say that oh I see we’re going to wrap up here but real quickly privacy also plays into this so you can record in the blockchain transaction to record all the actions of a user right which can provide accountability but you also want to make sure that privacy is paramount in this like for instance we’ll say it’s a credit three and you want to be able to record both positive and negative credit events but you don’t want the bat to be available to everybody so we we use encryption to keep confidentiality and right now one of the hot areas of research in enterprise blockchain is how do you do verifiable claims or zero knowledge proof that reflect the information that needs to be disclosed without without exposing all of the information so the things that need to be disclosed about a credit history are you know that all negative credit events have been accounted for and have been closed or that you know all of the credit history has been incorporated into the current rating that the participants are using that kind of thing without actually exposing the credit history itself so privacy actually complicates all of this and it is actually the area where a lot of people are doing a lot of research right now because it applies to huge things like health records and credit histories and employment records and things like that so with that I’d like to thank everybody for attending and our emails are here on the slide deck so feel free to email with questions you can follow up later thanks very much mark it with your the thing we know that I’ll let Branagh just wrap up great Thank You Martin thank you Dave for a great presentation and thanks to all of you for joining us for this RSA Conference virtual session we hope you will join us in San Francisco from March 4th to 8th for RSA Conference 2019 for more information and to register please visit RSA Conference calm in the coming weeks thank you you may now disconnect

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