arXiv subjects

Ivan Homoliak

Publications and source records attributed to Ivan Homoliak.

35 records · Page 2Linked to original sources

arXiv2023

CBDC-AquaSphere: Interoperable Central Bank Digital Currency Built on Trusted Computing and Blockchain

The adoption of decentralized, tamper-proof ledger systems is paving the way for new applications and opportunities in different contexts. While most research aims to improve their scalability, privacy, and governance issues, interoperability has received less attention. Executing transactions across various blockchains is notably instrumental in unlocking the potential of novel applications, particularly in the financial sector, where their potential would otherwise be significantly diminished. Therefore, interoperable ledgers are crucial to ensure the expansion and further adoption of such a technology in various contexts. In this paper, we present a protocol that uses a combination of trusted execution environment (TEE) and blockchains to enable interoperability over independent semi-centralized CBDC ledgers, guaranteeing the atomicity of inter-bank transfers. Our interoperability protocol uses a custom adaptation of atomic swap protocol and is executed by any pair of CBDC instances to realize a one-way transfer. It ensures features such as atomicity, verifiability, correctness, censorship resistance, and privacy while offering high scalability in terms of the number of CBDC instances. Our approach enables to possible deployment scenarios that can be combined: (1) CBDC instances represent central banks of multiple countries, and (2) CBDC instances represent the set of retail banks and a paramount central bank of a single country. We provide a detailed description of our protocol as well as an extensive analysis of its benefits, features, and security. In this WIP paper, we made a proof-of-concept implementation and made a partial evaluation, while the more extensive evaluation will be made in our future work.

cs.DC↗

arXiv2023

BBB-Voting: 1-out-of-k Blockchain-Based Boardroom Voting

Voting is a means to agree on a collective decision based on available choices (e.g., candidates), where participants agree to abide by their outcome. To improve some features of e-voting, decentralized blockchain-based solutions can be employed, where the blockchain represents a public bulletin board that in contrast to a centralized bulletin board provides extremely high availability, censorship resistance, and correct code execution. A blockchain ensures that all entities in the voting system have the same view of the actions made by others due to its immutability and append-only features. The existing remote blockchain-based boardroom voting solution called Open Voting Network (OVN) provides the privacy of votes, universal & End-to-End verifiability, and perfect ballot secrecy; however, it supports only two choices and lacks robustness enabling recovery from stalling participants. We present BBB-Voting, an equivalent blockchain-based approach for decentralized voting such as OVN, but in contrast to it, BBB-Voting supports 1-out-of-$k$ choices and provides robustness that enables recovery from stalling participants. We make a cost-optimized implementation using an Ethereum-based environment respecting Ethereum Enterprise Alliance standards, which we compare with OVN and show that our work decreases the costs for voters by 13.5% in normalized gas consumption. Finally, we show how BBB-Voting can be extended to support the number of participants limited only by the expenses paid by the authority and the computing power to obtain the tally.

cs.CR↗

arXiv2023

Fee-Redistribution Smart Contracts for Transaction-Fee-Based Regime of Blockchains with the Longest Chain Rule

In this paper, we review the undercutting attacks in the transaction-fee-based regime of proof-of-work (PoW) blockchains with the longest chain fork-choice rule. Next, we focus on the problem of fluctuations in mining revenue and the mining gap - i.e., a situation, in which the immediate reward from transaction fees does not cover miners' expenditures. To mitigate these issues, we propose a solution that splits transaction fees from a mined block into two parts - (1) an instant reward for the miner of a block and (2) a deposit sent to one or more fee-redistribution smart contracts ($\mathcal{FRSC}$s) that are part of the consensus protocol. At the same time, these redistribution smart contracts reward the miner of a block with a certain fraction of the accumulated funds of the incoming fees over a predefined time. This setting enables us to achieve several interesting properties that are beneficial for the incentive stability and security of the protocol. With our solution, the fraction of Default-Compliant miners who strictly do not execute undercutting attacks is lowered from the state-of-the-art result of 66% to 30%.

cs.CR↗

arXiv2022

Detecting and Preventing Credential Misuse in OTP-Based Two and Half Factor Authentication Toward Centralized Services Utilizing Blockchain-Based Identity Management

This work focuses on the problem of detection and prevention of stolen and misused secrets (such as private keys) for authentication toward centralized services. We propose a solution for such a problem based on the blockchain-based two-factor authentication scheme SmartOTPs, which we modify for our purposes and utilize in the setting of two and half-factor authentication against a centralized service provider. Our proposed solution consists of four entities that interact together to ensure authentication: (1) the user, (2) the authenticator, (3) the service provider, and (4) the smart contract. Out of two and a half factors of our solution, the first factor stands for the private key, and the second and a half factor stands for one-time passwords (OTPs) and their precursors, where OTPs are obtained from the precursors (a.k.a., pre-images) by cryptographically secure hashing. We describe the protocol for bootstrapping our approach as well as the authentication procedure. We make the security analysis of our solution, where on top of the main attacker model that steals secrets from the client, we analyze man-in-the-middle attacks and malware tampering with the client. In the case of stolen credentials, we show that our solution enables the user to immediately detect the attack occurrence and proceed to re-initialization with fresh credentials.

cs.CR↗

arXiv2022

SBvote: Scalable Self-Tallying Blockchain-Based Voting

Decentralized electronic voting solutions represent a promising advancement in electronic voting. One of the e-voting paradigms, the self-tallying scheme, offers strong protection of the voters' privacy while making the whole voting process verifiable. Decentralized smart contract platforms became interesting practical instantiation of the immutable bulletin board that this scheme requires to preserve its properties. Existing smart contract-based approaches employing the self-tallying scheme (such as OVN or BBB-Voting) are only suitable for a boardroom voting scenario due to their scalability limitation. The goal of our work is to build on existing solutions to achieve scalability without losing privacy guarantees and verifiability. We present SBvote, a blockchain-based self-tallying voting protocol that is scalable in the number of voters and therefore suitable for large-scale elections. The evaluation of our proof-of-concept implementation shows that the protocol's scalability is limited only by the underlying blockchain platform. We evaluated the scalability of SBvote on two public smart contract platforms -- Gnosis and Harmony. Despite the limitations imposed by the throughput of the blockchain platform, SBvote can accommodate elections with millions of voters.

cs.CR↗

arXiv2021

DAG-Oriented Protocols PHANTOM and GHOSTDAG under Incentive Attack via Transaction Selection Strategy

In response to the bottleneck of processing throughput inherent to single chain PoW blockchains, several proposals have substituted a single chain for Directed Acyclic Graphs (DAGs). In this work, we investigate two notable DAG-oriented designs. We focus on PHANTOM (and its optimization GHOSTDAG), which proposes a custom transaction selection strategy that enables to increase the throughput of the network. However, the related work lacks a thorough investigation of corner cases that deviate from the protocol in terms of transaction selection strategy. Therefore, we build a custom simulator that extends open source simulation tools to support multiple chains and enables us to investigate such corner cases. Our experiments show that malicious actors who diverge from the proposed transaction selection strategy make more profit as compared to honest miners. Moreover, they have a detrimental effect on the processing throughput of the PHANTOM (and GHOSTDAG) due to same transactions being included in more than one block of different chains. Finally, we show that multiple miners not following the transaction selection strategy are incentivized to create a shared mining pool instead of mining independently, which has a negative impact on decentralization.

cs.CR↗

arXiv2021

Intercepting Hail Hydra: Real-Time Detection of Algorithmically Generated Domains

A crucial technical challenge for cybercriminals is to keep control over the potentially millions of infected devices that build up their botnets, without compromising the robustness of their attacks. A single, fixed C&C server, for example, can be trivially detected either by binary or traffic analysis and immediately sink-holed or taken-down by security researchers or law enforcement. Botnets often use Domain Generation Algorithms (DGAs), primarily to evade take-down attempts. DGAs can enlarge the lifespan of a malware campaign, thus potentially enhancing its profitability. They can also contribute to hindering attack accountability. In this work, we introduce HYDRAS, the most comprehensive and representative dataset of Algorithmically-Generated Domains (AGD) available to date. The dataset contains more than 100 DGA families, including both real-world and adversarially designed ones. We analyse the dataset and discuss the possibility of differentiating between benign requests (to real domains) and malicious ones (to AGDs) in real-time. The simultaneous study of so many families and variants introduces several challenges; nonetheless, it alleviates biases found in previous literature employing small datasets which are frequently overfitted, exploiting characteristic features of particular families that do not generalise well.We thoroughly compare our approach with the current state-of-the-art and highlight some methodological shortcomings in the actual state of practice. The outcomes obtained show that our proposed approach significantly outperforms the current state-of-the-art in terms of both classification performance and efficiency.

cs.CR↗

arXiv2020

CoinWatch: A Clone-Based Approach For Detecting Vulnerabilities in Cryptocurrencies

Cryptocurrencies have become very popular in recent years. Thousands of new cryptocurrencies have emerged, proposing new and novel techniques that improve on Bitcoin's core innovation of the blockchain data structure and consensus mechanism. However, cryptocurrencies are a major target for cyber-attacks, as they can be sold on exchanges anonymously and most cryptocurrencies have their codebases publicly available. One particular issue is the prevalence of code clones in cryptocurrencies, which may amplify security threats. If a vulnerability is found in one cryptocurrency, it might be propagated into other cloned cryptocurrencies. In this work, we propose a systematic remedy to this problem, and we propose CoinWatch (CW). Given a reported vulnerability at the input, CW uses the code evolution analysis and a clone detection technique for indication of cryptocurrencies that might be vulnerable. We applied CW on 1094 cryptocurrencies using 4 CVEs and obtained 786 true vulnerabilities present in 384 projects, which were confirmed with developers and successfully reported as CVE extensions.

cs.CR↗

arXiv2020

The Security Reference Architecture for Blockchains: Towards a Standardized Model for Studying Vulnerabilities, Threats, and Defenses

Blockchains are distributed systems, in which security is a critical factor for their success. However, despite their increasing popularity and adoption, there is a lack of standardized models that study blockchain-related security threats. To fill this gap, the main focus of our work is to systematize and extend the knowledge about the security and privacy aspects of blockchains and contribute to the standardization of this domain. We propose the security reference architecture (SRA) for blockchains, which adopts a stacked model (similar to the ISO/OSI) describing the nature and hierarchy of various security and privacy aspects. The SRA contains four layers: (1) the network layer, (2) the consensus layer, (3) the replicated state machine layer, and (4) the application layer. At each of these layers, we identify known security threats, their origin, and countermeasures, while we also analyze several cross-layer dependencies. Next, to enable better reasoning about security aspects of blockchains by the practitioners, we propose a blockchain-specific version of the threat-risk assessment standard ISO/IEC 15408 by embedding the stacked model into this standard. Finally, we provide designers of blockchain platforms and applications with a design methodology following the model of SRA and its hierarchy.

cs.CR↗

arXiv2019

Adversarial Attacks on Remote User Authentication Using Behavioural Mouse Dynamics

Mouse dynamics is a potential means of authenticating users. Typically, the authentication process is based on classical machine learning techniques, but recently, deep learning techniques have been introduced for this purpose. Although prior research has demonstrated how machine learning and deep learning algorithms can be bypassed by carefully crafted adversarial samples, there has been very little research performed on the topic of behavioural biometrics in the adversarial domain. In an attempt to address this gap, we built a set of attacks, which are applications of several generative approaches, to construct adversarial mouse trajectories that bypass authentication models. These generated mouse sequences will serve as the adversarial samples in the context of our experiments. We also present an analysis of the attack approaches we explored, explaining their limitations. In contrast to previous work, we consider the attacks in a more realistic and challenging setting in which an attacker has access to recorded user data but does not have access to the authentication model or its outputs. We explore three different attack strategies: 1) statistics-based, 2) imitation-based, and 3) surrogate-based; we show that they are able to evade the functionality of the authentication models, thereby impacting their robustness adversely. We show that imitation-based attacks often perform better than surrogate-based attacks, unless, however, the attacker can guess the architecture of the authentication model. In such cases, we propose a potential detection mechanism against surrogate-based attacks.

cs.LG↗

arXiv2019

ASNM Datasets: A Collection of Network Traffic Features for Testing of Adversarial Classifiers and Network Intrusion Detectors

In this paper, we present three datasets that have been built from network traffic traces using ASNM features, designed in our previous work. The first dataset was built using a state-of-the-art dataset called CDX 2009, while the remaining two datasets were collected by us in 2015 and 2018, respectively. These two datasets contain several adversarial obfuscation techniques that were applied onto malicious as well as legitimate traffic samples during the execution of particular TCP network connections. Adversarial obfuscation techniques were used for evading machine learning-based network intrusion detection classifiers. Further, we showed that the performance of such classifiers can be improved when partially augmenting their training data by samples obtained from obfuscation techniques. In detail, we utilized tunneling obfuscation in HTTP(S) protocol and non-payload-based obfuscations modifying various properties of network traffic by, e.g., TCP segmentation, re-transmissions, corrupting and reordering of packets, etc. To the best of our knowledge, this is the first collection of network traffic metadata that contains adversarial techniques and is intended for non-payload-based network intrusion detection and adversarial classification. Provided datasets enable testing of the evasion resistance of arbitrary classifier that is using ASNM features.

cs.CR↗

arXiv2019

An Empirical Study into the Success of Listed Smart Contracts in Ethereum

Since it takes time and effort to put a new product or service on the market, one would like to predict whether it will be a success. In general this is not possible, but it is possible to follow best practices in order to maximise the chance of success. A smart contract is intended to encode business logic and is therefore at the heart of every new business on the Ethereum blockchain. We have investigated how to measure the success of smart contracts, and whether successful smart contracts have characteristics that less successful smart contracts lack. The appearance of a smart contract on a listing website such as Etherscan or StateoftheDapps is such a characteristic. In this paper, we present a three-pronged analysis of the relative success of listed smart contracts. First, we have used statistical analysis on the publicly visible transaction history of the Ethereum blockchain to determine that listed contracts are significantly more successful than their unlisted counterparts. Next, we have conducted a survey among more than 200 developers via an anonymous online survey about their experience with the listing process. A significant majority of respondents do not believe that listing a contract itself contributes to its success, but they believe that the extra attention that is typically paid in tandem with the listing process does contribute. Finally, based on the respondents' answers, we have drafted 10 recommendations for developers and validated them by submitting them to an international panel of experts.

cs.SE↗

arXiv2019

StrongChain: Transparent and Collaborative Proof-of-Work Consensus

Bitcoin is the most successful cryptocurrency so far. This is mainly due to its novel consensus algorithm, which is based on proof-of-work combined with a cryptographically-protected data structure and a rewarding scheme that incentivizes nodes to participate. However, despite its unprecedented success Bitcoin suffers from many inefficiencies. For instance, Bitcoin's consensus mechanism has been proved to be incentive-incompatible, its high reward variance causes centralization, and its hardcoded deflation raises questions about its long-term sustainability. In this work, we revise the Bitcoin consensus mechanism by proposing StrongChain, a scheme that introduces transparency and incentivizes participants to collaborate rather than to compete. The core design of our protocol is to reflect and utilize the computing power aggregated on the blockchain which is invisible and "wasted" in Bitcoin today. Introducing relatively easy, although important changes to Bitcoin's design enables us to improve many crucial aspects of Bitcoin-like cryptocurrencies making it more secure, efficient, and profitable for participants. We thoroughly analyze our approach and we present an implementation of StrongChain. The obtained results confirm its efficiency, security, and deployability.

cs.CR↗

arXiv2019

HADES-IoT: A Practical Host-Based Anomaly Detection System for IoT Devices (Extended Version)

Internet of Things (IoT) devices have become ubiquitous and are spread across many application domains including the industry, transportation, healthcare, and households. However, the proliferation of the IoT devices has raised the concerns about their security, especially when observing that many manufacturers focus only on the core functionality of their products due to short time to market and low-cost pressures, while neglecting security aspects. Moreover, it does not exist any established or standardized method for measuring and ensuring the security of IoT devices. Consequently, vulnerabilities are left untreated, allowing attackers to exploit IoT devices for various purposes, such as compromising privacy, recruiting devices into a botnet, or misusing devices to perform cryptocurrency mining. In this paper, we present a practical Host-based Anomaly DEtection System for IoT (HADES-IoT) that represents the last line of defense. HADES-IoT has proactive detection capabilities, provides tamper-proof resistance, and it can be deployed on a wide range of Linux-based IoT devices. The main advantage of HADES-IoT is its low performance overhead, which makes it suitable for the IoT domain, where state-of-the-art approaches cannot be applied due to their high-performance demands. We deployed HADES-IoT on seven IoT devices to evaluate its effectiveness and performance overhead. Our experiments show that HADES-IoT achieved 100% effectiveness in the detection of current IoT malware such as VPNFilter and IoTReaper; while on average, requiring only 5.5% of available memory and causing only a low CPU load.

cs.CR↗

arXiv2019

A Security Reference Architecture for Blockchains

Due to their interesting features, blockchains have become popular in recent years. They are full-stack systems where security is a critical factor for their success. The main focus of this work is to systematize knowledge about security and privacy issues of blockchains. To this end, we propose a security reference architecture based on models that demonstrate the stacked hierarchy of various threats (similar to the ISO/OSI hierarchy) as well as threat-risk assessment using ISO/IEC 15408. In contrast to the previous surveys, we focus on the categorization of security incidents based on their origins and using the proposed architecture we present existing prevention and mitigation techniques. The scope of our work mainly covers aspects related to the decentralized nature of blockchains, while we mention common operational security issues and countermeasures only tangentially.

cs.CR↗

arXiv2018

Improving Network Intrusion Detection Classifiers by Non-payload-Based Exploit-Independent Obfuscations: An Adversarial Approach

Machine-learning based intrusion detection classifiers are able to detect unknown attacks, but at the same time, they may be susceptible to evasion by obfuscation techniques. An adversary intruder which possesses a crucial knowledge about a protection system can easily bypass the detection module. The main objective of our work is to improve the performance capabilities of intrusion detection classifiers against such adversaries. To this end, we firstly propose several obfuscation techniques of remote attacks that are based on the modification of various properties of network connections; then we conduct a set of comprehensive experiments to evaluate the effectiveness of intrusion detection classifiers against obfuscated attacks. We instantiate our approach by means of a tool, based on NetEm and Metasploit, which implements our obfuscation operators on any TCP communication. This allows us to generate modified network traffic for machine learning experiments employing features for assessing network statistics and behavior of TCP connections. We perform the evaluation of five classifiers: Gaussian Naive Bayes, Gaussian Naive Bayes with kernel density estimation, Logistic Regression, Decision Tree, and Support Vector Machines. Our experiments confirm the assumption that it is possible to evade the intrusion detection capability of all classifiers trained without prior knowledge about obfuscated attacks, causing an exacerbation of the TPR ranging from 7.8% to 66.8%. Further, when widening the training knowledge of the classifiers by a subset of obfuscated attacks, we achieve a significant improvement of the TPR by 4.21% - 73.3%, while the FPR is deteriorated only slightly (0.1% - 1.48%). Finally, we test the capability of an obfuscations-aware classifier to detect unknown obfuscated attacks, where we achieve over 90% detection rate on average for most of the obfuscations.

cs.CR↗

arXiv2018

Insight into Insiders and IT: A Survey of Insider Threat Taxonomies, Analysis, Modeling, and Countermeasures

Insider threats are one of today's most challenging cybersecurity issues that are not well addressed by commonly employed security solutions. Despite several scientific works published in this domain, we argue that the field can benefit from the proposed structural taxonomy and novel categorization of research that contribute to the organization and disambiguation of insider threat incidents and the defense solutions used against them. The objective of our categorization is to systematize knowledge in insider threat research, while leveraging existing grounded theory method for rigorous literature review. The proposed categorization depicts the workflow among particular categories that include: 1) Incidents and datasets, 2) Analysis of attackers, 3) Simulations, and 4) Defense solutions. Special attention is paid to the definitions and taxonomies of the insider threat; we present a structural taxonomy of insider threat incidents, which is based on existing taxonomies and the 5W1H questions of the information gathering problem. Our survey will enhance researchers' efforts in the domain of insider threat, because it provides: a) a novel structural taxonomy that contributes to orthogonal classification of incidents and defining the scope of defense solutions employed against them, b) an updated overview on publicly available datasets that can be used to test new detection solutions against other works, c) references of existing case studies and frameworks modeling insiders' behaviors for the purpose of reviewing defense solutions or extending their coverage, and d) a discussion of existing trends and further research directions that can be used for reasoning in the insider threat domain.

cs.CR↗