Tag Archives: blockchain

On Blockchain Voting

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/11/on-blockchain-voting.html

Blockchain voting is a spectacularly dumb idea for a whole bunch of reasons. I have generally quoted Matt Blaze:

Why is blockchain voting a dumb idea? Glad you asked.

For starters:

  • It doesn’t solve any problems civil elections actually have.
  • It’s basically incompatible with “software independence”, considered an essential property.
  • It can make ballot secrecy difficult or impossible.

I’ve also quoted this XKCD cartoon.

But now I have this excellent paper from MIT researchers:

“Going from Bad to Worse: From Internet Voting to Blockchain Voting”
Sunoo Park, Michael Specter, Neha Narula, and Ronald L. Rivest

Abstract: Voters are understandably concerned about election security. News reports of possible election interference by foreign powers, of unauthorized voting, of voter disenfranchisement, and of technological failures call into question the integrity of elections worldwide.This article examines the suggestions that “voting over the Internet” or “voting on the blockchain” would increase election security, and finds such claims to be wanting and misleading. While current election systems are far from perfect, Internet- and blockchain-based voting would greatly increase the risk of undetectable, nation-scale election failures.Online voting may seem appealing: voting from a computer or smart phone may seem convenient and accessible. However, studies have been inconclusive, showing that online voting may have little to no effect on turnout in practice, and it may even increase disenfranchisement. More importantly: given the current state of computer security, any turnout increase derived from with Internet- or blockchain-based voting would come at the cost of losing meaningful assurance that votes have been counted as they were cast, and not undetectably altered or discarded. This state of affairs will continue as long as standard tactics such as malware, zero days, and denial-of-service attacks continue to be effective.This article analyzes and systematizes prior research on the security risks of online and electronic voting, and show that not only do these risks persist in blockchain-based voting systems, but blockchains may introduce additional problems for voting systems. Finally, we suggest questions for critically assessing security risks of new voting system proposals.

You may have heard of Voatz, which uses blockchain for voting. It’s an insecure mess. And this is my general essay on blockchain. Short summary: it’s completely useless.

US Postal Service Files Blockchain Voting Patent

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/08/us_postal_servi.html

The US Postal Service has filed a patent on a blockchain voting method:

Abstract: A voting system can use the security of blockchain and the mail to provide a reliable voting system. A registered voter receives a computer readable code in the mail and confirms identity and confirms correct ballot information in an election. The system separates voter identification and votes to ensure vote anonymity, and stores votes on a distributed ledger in a blockchain

I wasn’t going to bother blogging this, but I’ve received enough emails about it that I should comment.

As is pretty much always the case, blockchain adds nothing. The security of this system has nothing to do with blockchain, and would be better off without it. For voting in particular, blockchain adds to the insecurity. Matt Blaze is most succinct on that point:

Why is blockchain voting a dumb idea?

Glad you asked.

For starters:

  • It doesn’t solve any problems civil elections actually have.
  • It’s basically incompatible with “software independence”, considered an essential property.
  • It can make ballot secrecy difficult or impossible.

Both Ben Adida and Matthew Green have written longer pieces on blockchain and voting.

News articles.

US Postal Service Files Blockchain Voting Patent

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/08/us_postal_servi.html

The US Postal Service has filed a patent on a blockchain voting method:

Abstract: A voting system can use the security of blockchain and the mail to provide a reliable voting system. A registered voter receives a computer readable code in the mail and confirms identity and confirms correct ballot information in an election. The system separates voter identification and votes to ensure vote anonymity, and stores votes on a distributed ledger in a blockchain

I wasn’t going to bother blogging this, but I’ve received enough emails about it that I should comment.

As is pretty much always the case, blockchain adds nothing. The security of this system has nothing to do with blockchain, and would be better off without it. For voting in particular, blockchain adds to the insecurity. Matt Blaze is most succinct on that point:

Why is blockchain voting a dumb idea?

Glad you asked.

For starters:

  • It doesn’t solve any problems civil elections actually have.
  • It’s basically incompatible with “software independence”, considered an essential property.
  • It can make ballot secrecy difficult or impossible.

Both Ben Adida and Matthew Green have written longer pieces on blockchain and voting.

News articles.

Blockchainizing Existing Databases

Post Syndicated from Bozho original https://techblog.bozho.net/blockchainizing-existing-databases/

Blockchain has been a buzzword for the past several years and it hasn’t lived to its promises (yet). The value proposition usually includes vague claims about trust and unmodifiability, but rarely that has brought demonstrable improvement to existing processes.

There are dozens of blockchain projects, networks, protocols, “standards”, and all of them can in some way help you solve either data integrity issues (guarantee that data has not been tampered with) or multi-party trust issues (several companies participating in one process shouldn’t have to trust each other in order to have automated cross-organization business processes).

However, deploying and integrating a separate blockchain solution is usually a large project in itself and especially in the COVID-19 crisis likely gets postponed because of the questionable return on investment.

But for the enterprise, blockchain is largely a shared database. Sharing data with other participants in a given business process in a secure way that doesn’t allow any of the participants to cheat. And this can be achieved not by adding a whole new blockchain infrastructure that would in turn integrate with existing systems (which in many cases can’t be integrated easily because they don’t have APIs), but by “blockchainizing” the existing database.

Ideally, what I’m describing should be a project itself, which is either deployed alongside the database, or as part of an application. And what it can do is as follows:

  • Select tables and columns to share with other participants – obviously only parts of the database should be shared with others
  • Define shared data model and data transformations – sometimes data has to be transformed, or masked, in order to meet regulatory or privacy requirements. Certainly, the databases of participants will differ and they have to be aligned to a common model.
  • Track inserts, updates and deletes, sign them and send them to the peers
  • Manage a PKI with a private key shared with the rest of the participants (or some of them)
  • Generate merkle trees based on the “transactions” (inserts, updates and deletes) and expose them to be verified regularly by the peers
  • Provide an admin dashboard to view various aspects of the system – activity, status of peers, configuration options

Effectively, that’s also an integration effort. Defining shared data models and transformations. It also involves setting up some piece of software that does the “blockchaining” and communication with peers. But since the goal is usually to have a shared database, it makes sense to go directly at the database level, rather than providing an append-only key-value store which is then queried in order to fill the actual database.

Can such an approach be just a configuration option for existing solutions like Openchain, Hyperledger, Corda? It could be – allowing them to stream changes directly to and from an existing database in a predefined fashion.

This post is in the “random ideas” category, things that I’ve thought about could be implemented, but never found the time to do so. I think blockchain should be taken to the ground and viewed as an infrastructure components. Much like enabling database encryption or adding another data source to an ESB for the sake of integrating two systems. Because the business case for blockchain is usually this – integrate several systems and don’t allow them to cheat. I think this can be achieved by plugging at the database level for the systems integrated.

The post Blockchainizing Existing Databases appeared first on Bozho's tech blog.

Voatz Internet Voting App Is Insecure

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/02/voatz_internet_.html

This paper describes the flaws in the Voatz Internet voting app: “The Ballot is Busted Before the Blockchain: A Security Analysis of Voatz, the First Internet Voting Application Used in U.S. Federal Elections.”

Abstract: In the 2018 midterm elections, West Virginia became the first state in the U.S. to allow select voters to cast their ballot on a mobile phone via a proprietary app called “Voatz.” Although there is no public formal description of Voatz’s security model, the company claims that election security and integrity are maintained through the use of a permissioned blockchain, biometrics, a mixnet, and hardware-backed key storage modules on the user’s device. In this work, we present the first public security analysis of Voatz, based on a reverse engineering of their Android application and the minimal available documentation of the system. We performed a clean-room reimplementation of Voatz’s server and present an analysis of the election process as visible from the app itself.

We find that Voatz has vulnerabilities that allow different kinds of adversaries to alter, stop, or expose a user’s vote,including a sidechannel attack in which a completely passive network adversary can potentially recover a user’s secret ballot. We additionally find that Voatz has a number of privacy issues stemming from their use of third party services for crucial app functionality. Our findings serve as a concrete illustration of the common wisdom against Internet voting,and of the importance of transparency to the legitimacy of elections.

News articles.

The company’s response is a perfect illustration of why non-computer non-security companies have no idea what they’re doing, and should not be trusted with any form of security.

Chrome Extension Stealing Cryptocurrency Keys and Passwords

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/01/chrome_extensio.html

A malicious Chrome extension surreptitiously steals Ethereum keys and passwords:

According to Denley, the extension is dangerous to users in two ways. First, any funds (ETH coins and ERC0-based tokens) managed directly inside the extension are at risk.

Denley says that the extension sends the private keys of all wallets created or managed through its interface to a third-party website located at erc20wallet[.]tk.

Second, the extension also actively injects malicious JavaScript code when users navigate to five well-known and popular cryptocurrency management platforms. This code steals login credentials and private keys, data that it’s sent to the same erc20wallet[.]tk third-party website.

Another example of how blockchain requires many single points of trust in order to be secure.

Architecture Monthly Magazine: Architecting for Financial Services

Post Syndicated from Annik Stahl original https://aws.amazon.com/blogs/architecture/architecture-monthly-magazine-architecting-for-financial-services/

Architecture Monthly - October - Bull and BearThis month’s Architecture Monthly magazine delves into the high-stakes world of banking, insurance, and securities. From capital markets and insurance, to global investment banks, payments, and emerging fintech startups, AWS helps customers innovate, modernize, and transform.

We’re featuring two field experts in October’s issue. First, we interviewed Ed Pozarycki, a Solutions Architect manager in the AWS Financial Services vertical, who spoke to us about patterns, trends, and the special challenges architects face when building systems for financial organizations. And this month we’re rolling out a new feature: Ask an Expert, where we’ll ask AWS professionals three questions about the current magazine’s theme.In this issue, Lana Kalashnyk, Principal Blockchain Architect, told us three things to know about blockchain and cryptocurrencies.

In October’s Issue

For October’s magazine, we’ve assembled architectural best practices about financial services from all over AWS, and we’ve made sure that a broad audience can appreciate it.

  • Interview: Ed Pozarycki, Solutions Architecture Manager, Financial Services
  • Blog post: Tips For Building a Cloud Security Operating Model in the Financial Services Industry
  • Case study: Aon Securities, Inc.
  • Ask an Expert: 3 Things to Know About Blockchain & Cryptocurrencies
  • On-demand webinar: The New Age of Banking & Transforming Customer Experiences
  • Whitepaper: Financial Services Grid Computing on AWS

How to Access the Magazine

We hope you’re enjoying Architecture Monthly, and we’d like to hear from you—leave us star rating and comment on the Amazon Kindle page or contact us anytime at [email protected].

Financial Services at re:Invent

We have a full re:Invent program planned for the Financial Services industry in December, including leadership, breakout, and builder sessions, plus chalk talks and workshops. Register today.

Blockchain Overview – Types, Use-Cases, Security and Usability [slides]

Post Syndicated from Bozho original https://techblog.bozho.net/blockchain-overview-types-use-cases-security-and-usability-slides/

This week I have a talk on a meetup about blockchain beyond the hype – its actual implementation issues and proper use-cases.

The slides can be found here:

The main takeaways are:

  • Think of blockchain in specifics, not in high-level “magic”
  • Tamper-evident data structures are cool, you should be familiar with them – merkle trees, hash chains, etc. They are useful for other things as well, e.g. certificate transparency
  • Blockchain and its cryptography is perfect for protecting data integrity, which is part of the CIA triad of information security
  • Many proposed use-cases can be solved with centralized solutions + trusted timestamps instead
  • Usability is a major issue when it comes to wider adoption

As with anything in technology – use the right tool for the job, as no solution solves every problem.

The post Blockchain Overview – Types, Use-Cases, Security and Usability [slides] appeared first on Bozho's tech blog.

Presidential Candidate Andrew Yang Has Quantum Encryption Policy

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/07/presidential_ca.html

At least one presidential candidate has a policy about quantum computing and encryption.

It has two basic planks. One: fund quantum-resistant encryption standards. (Note: NIST is already doing this.) Two, fund quantum computing. (Unlike many far more pressing computer security problems, the market seems to be doing this on its own quite nicely.)

Okay, so not the greatest policy — but at least one candidate has a policy. Do any of the other candidates have anything else in this area?

Yang has also talked about blockchain: “

“I believe that blockchain needs to be a big part of our future,” Yang told a crowded room at the Consensus conference in New York, where he gave a keynote address Wednesday. “If I’m in the White House, oh boy are we going to have some fun in terms of the crypto currency community.”

Okay, so that’s not so great, either. But again, I don’t think anyone else talks about this.

Note: this is not an invitation to talk more general politics. Not even an invitation to explain how good or bad Andrew Yang’s chances are. Or anyone else’s. Please.

Cloudflare’s Ethereum Gateway

Post Syndicated from Jonathan Hoyland original https://blog.cloudflare.com/cloudflare-ethereum-gateway/

Cloudflare's Ethereum Gateway

Cloudflare's Ethereum Gateway

Today, we are excited to announce Cloudflare’s Ethereum Gateway, where you can interact with the Ethereum network without installing any additional software on your computer.

This is another tool in Cloudflare’s Distributed Web Gateway tool set. Currently, Cloudflare lets you host content on the InterPlanetary File System (IPFS) and access it through your own custom domain. Similarly, the new Ethereum Gateway allows access to the Ethereum network, which you can provision through your custom hostname.

This setup makes it possible to add interactive elements to sites powered by Ethereum smart contracts, a decentralized computing platform. And, in conjunction with the IPFS gateway, this allows hosting websites and resources in a decentralized manner, and has the extra bonus of the added speed, security, and reliability provided by the Cloudflare edge network. You can access our Ethereum gateway directly at https://cloudflare-eth.com.

This brief primer on how Ethereum and smart contracts work has examples of the many possibilities of using the Cloudflare Distributed Web Gateway.

Primer on Ethereum

You may have heard of Ethereum as a cryptocurrency. What you may not know is that Ethereum is so much more. Ethereum is a distributed virtual computing network that stores and enforces smart contracts.

So, what is a smart contract?

Good question. Ethereum smart contracts are simply a piece of code stored on the Ethereum blockchain. When the contract is triggered, it runs on the Ethereum Virtual Machine (EVM). The EVM is a distributed virtual machine that runs smart contract code and produces cryptographically verified changes to the state of the Ethereum blockchain as its result.

To illustrate the power of smart contracts, let’s consider a little example.

Anna wants to start a VPN provider but she lacks the capital. To raise funds for her venture she decides to hold an Initial Coin Offering (ICO). Rather than design an ICO contract from scratch Anna bases her contract off of ERC-20. ERC-20 is a template for issuing fungible tokens, perfect for ICOs. Anna sends her ERC-20 compliant contract to the Ethereum network, and starts to sell stock in her new company, VPN Co.

Cloudflare's Ethereum Gateway

Once she’s sorted out funds, Anna sits down and starts to write a smart contract. Anna’s contract asks customers to send her their public key, along with some Ether (the coin product of Ethereum). She then authorizes the public key to access her VPN service. All without having to hold any secret information. Huzzah!

Next, rather than set up the infrastructure to run a VPN herself, Anna decides to use the blockchain again, but this time as a customer. Cloud Co. sells managed cloud infrastructure using their own smart contract. Anna programs her contract to send the appropriate amount of Ether to Cloud Co.’s contract. Cloud Co. then provisions the servers she needs to host her VPN. By automatically purchasing more infrastructure every time she has a new customer, her VPN company can scale totally autonomously.

Cloudflare's Ethereum Gateway

Finally, Anna pays dividends to her investors out of the profits, keeping a little for herself.

Cloudflare's Ethereum Gateway

And there you have it.

A decentralised, autonomous, smart VPN provider.

A smart contract stored on the blockchain has an associated account for storing funds, and the contract is triggered when someone sends Ether to that account. So for our VPN example, the provisioning contract triggers when someone transfers money into the account associated with Anna’s contract.

What distinguishes smart contracts from ordinary code?

The “smart” part of a smart contract is they run autonomously. The “contract” part is the guarantee that the code runs as written.

Because this contract is enforced cryptographically, maintained in the tamper-resistant medium of the blockchain and verified by the consensus of the network, these contracts are more reliable than regular contracts which can provoke dispute.

Ethereum Smart Contracts vs. Traditional Contracts

A regular contract is enforced by the court system, litigated by lawyers. The outcome is uncertain; different courts rule differently and hiring more or better lawyers can swing the odds in your favor.

Smart contract outcomes are predetermined and are nearly incorruptible. However, here be dragons: though the outcome can be predetermined and incorruptible, a poorly written contract might not have the intended behavior, and because contracts are immutable, this is difficult to fix.

How are smart contracts written?

You can write smart contracts in a number of languages, some of which are Turing complete, e.g. Solidity. A Turing complete language lets you write code that can evaluate any computable function. This puts Solidity in the same class of languages as Python and Java. The compiled bytecode is then run on the EVM.

The EVM differs from a standard VM in a number of ways:

The EVM is distributed

Each piece of code is run by numerous nodes. Nodes verify the computation before accepting a block, and therefore ensure that miners who want their blocks accepted must always run the EVM honestly. A block is only considered accepted when more than half of the network accepts it. This is the consensus part of Ethereum.

The EVM is entirely deterministic

This means that the same inputs to a function always produce the same outputs. Because regular VMs have access to file storage and the network, the results of a function call can be non-deterministic. Every EVM has the same start state, thus a given set of inputs always gives the same outputs. This makes the EVM more reliable than a standard VM.

There are two big gotchas that come with this determinism:

  • EVM bytecode is Turing complete and therefore discerning the outputs without running the computation is not always possible.
  • Ethereum smart contracts can store state on the blockchain. This means that the output of the function can vary as the blockchain changes. Although, technically this is deterministic in that the blockchain is an input to the function, it may still be impossible to derive the output in advance.

This however means that they suffer from the same problems as any piece of software – bugs. However, unlike normal code where the authors can issue a patch, code stored on the blockchain is immutable. More problematically, even if the author provides a new smart contract, the old one is always still available on the blockchain.

This means that when writing contracts authors must be especially careful to write secure code, and include a kill switch to ensure that if bugs do reside in the code, they can be squashed. If there is no kill switch and there are vulnerabilities in the smart contract that can be exploited, it can potentially lead to the theft of resources from the smart contract or from other individuals. EVM Bytecode includes a special SELFDESTRUCT opcode that deletes a contract, and sends all funds to the specified address for just this purpose.

The need to include a kill switch was brought into sharp focus during the infamous DAO incident. The DAO smart contract acted as a complex decentralized venture capital (VC) fund and held Ether worth $250 million at its peak collected from a group of investors. Hackers exploited vulnerabilities in the smart contract and stole Ether worth $50 million.

Because there is no way to undo transactions in Ethereum, there was a highly controversial “hard fork,” where the majority of the community agreed to accept a block with an “irregular state change” that essentially drained all DAO funds into a special “WithdrawDAO” recovery contract. By convincing enough miners to accept this irregular block as valid, the DAO could return funds.

Not everyone agreed with the change. Those who disagreed rejected the irregular block and formed the Ethereum Classic network, with both branches of the fork growing independently.

Kill switches, however, can cause their own problems. For example, when a contract used as a library flips its kill switch, all contracts relying on this contract can no longer operate as intended, even though the underlying library code is immutable. This caused over 500,000 ETH to become stuck in multi-signature wallets when an attacker triggered the kill switch of an underlying library.

Users of the multi-signature library assumed the immutability of the code meant that the library would always operate as anticipated. But the smart contracts that interact with the blockchain are only deterministic when accounting for the state of the blockchain.

In the wake of the DAO, various tools were created that check smart contracts for bugs or enable bug bounties, for example Securify and The Hydra.

Cloudflare's Ethereum Gateway
Come here, you …

Another way smart contracts avoid bugs is using standardized patterns. For example, ERC-20 defines a standardized interface for producing tokens such as those used in ICOs, and ERC-721 defines a standardized interface for implementing non-fungible tokens. Non-fungible tokens can be used for trading-card games like CryptoKitties. CryptoKitties is a trading-card style game built on the Ethereum blockchain. Players can buy, sell, and breed cats, with each cat being unique.

CryptoKitties is built on a collection of smart contracts that provides an open-source Application Binary Interface (ABI) for interacting with the KittyVerse — the virtual world of the CryptoKitties application. An ABI simply allows you to call functions in a contract and receive any returned data. The KittyBase code may look like this:

Contract KittyBase is KittyAccessControl {
	event Birth(address owner, uint256 kittyId, uint256 matronId, uint256 sireId, uint256 genes);
	event Transfer(address from, address to, uint256 tokenId);
    struct Kitty {
        uint256 genes;
        uint64 birthTime;
        uint64 cooldownEndBlock;
        uint32 matronId;
        uint32 sireId;
        uint32 siringWithId;
        uint16 cooldownIndex;
        uint16 generation;
    }
	[...]
    function _transfer(address _from, address _to, uint256 _tokenId) internal {
    ...
    }
    function _createKitty(uint256 _matronId, uint256 _sireId, uint256 _generation, uint256 _genes, address _owner) internal returns (uint) {
    ...
    }
	[...]
}

Besides defining what a Kitty is, this contract defines two basic functions for transferring and creating kitties. Both are internal and can only be called by contracts that implement KittyBase. The KittyOwnership contract implements both ERC-721 and KittyBase, and implements an external transfer function that calls the internal _transfer function. This code is compiled into bytecode written to the blockchain.

By implementing a standardised interface like ERC-721, smart contracts that aren’t specifically aware of CryptoKitties can still interact with the KittyVerse. The CryptoKitties ABI functions allow users to create distributed apps (dApps), of their own design on top of the KittyVerse, and allow other users to use their dApps. This extensibility helps demonstrate the potential of smart contracts.

How is this so different?

Smart contracts are, by definition, public. Everyone can see the terms and understand where the money goes. This is a radically different approach to providing transparency and accountability. Because all contracts and transactions are public and verified by consensus, trust is distributed between the people, rather than centralized in a few big institutions.

The trust given to institutions is historic in that we trust them because they have previously demonstrated trustworthiness.

The trust placed in consensus-based algorithms is based on the assumption that most people are honest, or more accurately, that no sufficiently large subset of people can collude to produce a malicious outcome. This is the democratisation of trust.

In the case of the DAO attack, a majority of nodes agreed to accept an “irregular” state transition. This effectively undid the damage of the attack and demonstrates how, at least in the world of blockchain, perception is reality. Because most people “believed” (accepted) this irregular block, it became a “real,” valid block. Most people think of the blockchain as immutable, and trust the power of consensus to ensure correctness, however if enough people agree to do something irregular, they don’t have to keep the rules.

So where does Cloudflare fit in?

Accessing the Ethereum network and its attendant benefits directly requires running complex software, including downloading and cryptographically verifying hundreds of gigabytes of data, which apart from producing technical barriers to entry for users, can also exclude people with low-power devices.

To help those users and devices access the Ethereum network, the Cloudflare Ethereum gateway allows any device capable of accessing the web to interact with the Ethereum network in a safe, reliable way.

Through our gateway, not only can you explore the blockchain, but if you give our gateway a signed transaction, we’ll push it to the network to allow miners to add it to their blockchain. This means that you can send Ether and even put new contracts on the blockchain without having to run a node.

“But Jonathan,” I hear you say, “by providing a gateway aren’t you just making Cloudflare a centralizing institution?”

That’s a fair question. Thankfully, Cloudflare won’t be alone in offering these gateways. We’re joining alongside organizations, such as Infura, to expand the constellation of gateways that already exist. We hope that, by providing a fast, reliable service, we can enable people who never previously used smart-contracts to do so, and in so doing bring the benefits they offer to billions of regular Internet users.

“We’re excited that Cloudflare is bringing their infrastructure expertise to the Ethereum ecosystem. Infura has always believed in the importance of standardized, open APIs and compatibility between gateway providers, so we look forward to collaborating with their team to build a better distributed web.” – E.G. Galano, Infura co-founder.

By providing a gateway to the Ethereum network, we help users make the jump from general web-user to cryptocurrency native, and eventually make the distributed web a fundamental part of the Internet.

What can you do with Cloudflare’s Gateway?

Visit cloudflare-eth.com to interact with our example app. But to really explore the Ethereum world, access the RPC API, where you can do anything that can be done on the Ethereum network itself, from examining contracts, to transferring funds.

Our Gateway accepts POST requests containing JSON. For a complete list of calls, visit the Ethereum github page. So, to get the block number of the most recent block, you could run:

curl https://cloudflare-eth.com -H "Content-Type: application/json" --data '{"jsonrpc":"2.0","method":"eth_blockNumber","params":[],"id":1}'

and you would get a response something like this:

{
  "jsonrpc": "2.0",
  "id": 1,
  "result": "0x780f17"
}

We also invite developers to build dApps based on our Ethereum gateway using our API. Our API allows developers to build websites powered by the Ethereum blockchain. Check out developer docs to get started. If you want to read more about how Ethereum works check out this deep dive.

The architecture

Cloudflare is uniquely positioned to host an Ethereum gateway, and we have the utmost faith in the products we offer to customers. This is why the Cloudflare Ethereum gateway runs as a Cloudflare customer and we dogfood our own products to provide a fast and reliable gateway. The domain we run the gateway on (https://cloudflare-eth.com) uses Cloudflare Workers to cache responses for popular queries made to the gateway. Responses for these queries are answered directly from the Cloudflare edge, which can result in a ~6x speed-up.

We also use Load balancing and Argo Tunnel for fast, redundant, and secure content delivery. With Argo Smart Routing enabled, requests and responses to our Ethereum gateway are tunnelled directly from our Ethereum node to the Cloudflare edge using the best possible routing.

Cloudflare's Ethereum Gateway

Similar to our IPFS gateway, cloudflare-eth.com is an SSL for SaaS provider. This means that anyone can set up the Cloudflare Ethereum gateway as a backend for access to the Ethereum network through their own registered domains. For more details on how to set up your own domain with this functionality, see the Ethereum tab on cloudflare.com/distributed-web-gateway.

With these features, you can use Cloudflare’s Distributed Web Gateway to create a fully decentralized website with an interactive backend that allows interaction with the IPFS and Ethereum networks. For example, you can host your content on IPFS (using something like Pinata to pin the files), and then host the website backend as a smart contract on Ethereum. This architecture does not require a centralized server for hosting files or the actual website. Added to the power, speed, and security provided by Cloudflare’s edge network, your website is delivered to users around the world with unparalleled efficiency.

Embracing a distributed future

At Cloudflare, we support technologies that help distribute trust. By providing a gateway to the Ethereum network, we hope to facilitate the growth of a decentralized future.

We thank the Ethereum Foundation for their support of a new gateway in expanding the distributed web:

“Cloudflare’s Ethereum Gateway increases the options for thin-client applications as well as decentralization of the Ethereum ecosystem, and I can’t think of a better person to do this work than Cloudflare. Allowing access through a user’s custom hostname is a particularly nice touch. Bravo.” – Dr. Virgil Griffith, Head of Special Projects, Ethereum Foundation.

We hope that by allowing anyone to use the gateway as the backend for their domain, we make the Ethereum network more accessible for everyone; with the added speed and security brought by serving this content directly from Cloudflare’s global edge network.

So, go forth and build our vision – the distributed crypto-future!

Cloudflare's Ethereum Gateway

Cloudflare’s Ethereum Gateway

Post Syndicated from Jonathan Hoyland original https://blog.cloudflare.com/cloudflare-ethereum-gateway/

Cloudflare's Ethereum Gateway

Cloudflare's Ethereum Gateway

Today, as part of Crypto Week 2019, we are excited to announce Cloudflare’s Ethereum Gateway, where you can interact with the Ethereum network without installing any additional software on your computer.

This is another tool in Cloudflare’s Distributed Web Gateway tool set. Currently, Cloudflare lets you host content on the InterPlanetary File System (IPFS) and access it through your own custom domain. Similarly, the new Ethereum Gateway allows access to the Ethereum network, which you can provision through your custom hostname.

This setup makes it possible to add interactive elements to sites powered by Ethereum smart contracts, a decentralized computing platform. And, in conjunction with the IPFS gateway, this allows hosting websites and resources in a decentralized manner, and has the extra bonus of the added speed, security, and reliability provided by the Cloudflare edge network. You can access our Ethereum gateway directly at https://cloudflare-eth.com.

This brief primer on how Ethereum and smart contracts work has examples of the many possibilities of using the Cloudflare Distributed Web Gateway.

Primer on Ethereum

You may have heard of Ethereum as a cryptocurrency. What you may not know is that Ethereum is so much more. Ethereum is a distributed virtual computing network that stores and enforces smart contracts.

So, what is a smart contract?

Good question. Ethereum smart contracts are simply a piece of code stored on the Ethereum blockchain. When the contract is triggered, it runs on the Ethereum Virtual Machine (EVM). The EVM is a distributed virtual machine that runs smart contract code and produces cryptographically verified changes to the state of the Ethereum blockchain as its result.

To illustrate the power of smart contracts, let’s consider a little example.

Anna wants to start a VPN provider but she lacks the capital. To raise funds for her venture she decides to hold an Initial Coin Offering (ICO). Rather than design an ICO contract from scratch Anna bases her contract off of ERC-20. ERC-20 is a template for issuing fungible tokens, perfect for ICOs. Anna sends her ERC-20 compliant contract to the Ethereum network, and starts to sell stock in her new company, VPN Co.

Cloudflare's Ethereum Gateway

Once she’s sorted out funds, Anna sits down and starts to write a smart contract. Anna’s contract asks customers to send her their public key, along with some Ether (the coin product of Ethereum). She then authorizes the public key to access her VPN service. All without having to hold any secret information. Huzzah!

Next, rather than set up the infrastructure to run a VPN herself, Anna decides to use the blockchain again, but this time as a customer. Cloud Co. sells managed cloud infrastructure using their own smart contract. Anna programs her contract to send the appropriate amount of Ether to Cloud Co.’s contract. Cloud Co. then provisions the servers she needs to host her VPN. By automatically purchasing more infrastructure every time she has a new customer, her VPN company can scale totally autonomously.

Cloudflare's Ethereum Gateway

Finally, Anna pays dividends to her investors out of the profits, keeping a little for herself.

Cloudflare's Ethereum Gateway

And there you have it.

A decentralised, autonomous, smart VPN provider.

A smart contract stored on the blockchain has an associated account for storing funds, and the contract is triggered when someone sends Ether to that account. So for our VPN example, the provisioning contract triggers when someone transfers money into the account associated with Anna’s contract.

What distinguishes smart contracts from ordinary code?

The “smart” part of a smart contract is they run autonomously. The “contract” part is the guarantee that the code runs as written.

Because this contract is enforced cryptographically, maintained in the tamper-resistant medium of the blockchain and verified by the consensus of the network, these contracts are more reliable than regular contracts which can provoke dispute.

Ethereum Smart Contracts vs. Traditional Contracts

A regular contract is enforced by the court system, litigated by lawyers. The outcome is uncertain; different courts rule differently and hiring more or better lawyers can swing the odds in your favor.

Smart contract outcomes are predetermined and are nearly incorruptible. However, here be dragons: though the outcome can be predetermined and incorruptible, a poorly written contract might not have the intended behavior, and because contracts are immutable, this is difficult to fix.

How are smart contracts written?

You can write smart contracts in a number of languages, some of which are Turing complete, e.g. Solidity. A Turing complete language lets you write code that can evaluate any computable function. This puts Solidity in the same class of languages as Python and Java. The compiled bytecode is then run on the EVM.

The EVM differs from a standard VM in a number of ways:

The EVM is distributed

Each piece of code is run by numerous nodes. Nodes verify the computation before accepting a block, and therefore ensure that miners who want their blocks accepted must always run the EVM honestly. A block is only considered accepted when more than half of the network accepts it. This is the consensus part of Ethereum.

The EVM is entirely deterministic

This means that the same inputs to a function always produce the same outputs. Because regular VMs have access to file storage and the network, the results of a function call can be non-deterministic. Every EVM has the same start state, thus a given set of inputs always gives the same outputs. This makes the EVM more reliable than a standard VM.

There are two big gotchas that come with this determinism:

  • EVM bytecode is Turing complete and therefore discerning the outputs without running the computation is not always possible.
  • Ethereum smart contracts can store state on the blockchain. This means that the output of the function can vary as the blockchain changes. Although, technically this is deterministic in that the blockchain is an input to the function, it may still be impossible to derive the output in advance.

This however means that they suffer from the same problems as any piece of software – bugs. However, unlike normal code where the authors can issue a patch, code stored on the blockchain is immutable. More problematically, even if the author provides a new smart contract, the old one is always still available on the blockchain.

This means that when writing contracts authors must be especially careful to write secure code, and include a kill switch to ensure that if bugs do reside in the code, they can be squashed. If there is no kill switch and there are vulnerabilities in the smart contract that can be exploited, it can potentially lead to the theft of resources from the smart contract or from other individuals. EVM Bytecode includes a special SELFDESTRUCT opcode that deletes a contract, and sends all funds to the specified address for just this purpose.

The need to include a kill switch was brought into sharp focus during the infamous DAO incident. The DAO smart contract acted as a complex decentralized venture capital (VC) fund and held Ether worth $250 million at its peak collected from a group of investors. Hackers exploited vulnerabilities in the smart contract and stole Ether worth $50 million.

Because there is no way to undo transactions in Ethereum, there was a highly controversial “hard fork,” where the majority of the community agreed to accept a block with an “irregular state change” that essentially drained all DAO funds into a special “WithdrawDAO” recovery contract. By convincing enough miners to accept this irregular block as valid, the DAO could return funds.

Not everyone agreed with the change. Those who disagreed rejected the irregular block and formed the Ethereum Classic network, with both branches of the fork growing independently.

Kill switches, however, can cause their own problems. For example, when a contract used as a library flips its kill switch, all contracts relying on this contract can no longer operate as intended, even though the underlying library code is immutable. This caused over 500,000 ETH to become stuck in multi-signature wallets when an attacker triggered the kill switch of an underlying library.

Users of the multi-signature library assumed the immutability of the code meant that the library would always operate as anticipated. But the smart contracts that interact with the blockchain are only deterministic when accounting for the state of the blockchain.

In the wake of the DAO, various tools were created that check smart contracts for bugs or enable bug bounties, for example Securify and The Hydra.

Cloudflare's Ethereum Gateway
Come here, you …

Another way smart contracts avoid bugs is using standardized patterns. For example, ERC-20 defines a standardized interface for producing tokens such as those used in ICOs, and ERC-721 defines a standardized interface for implementing non-fungible tokens. Non-fungible tokens can be used for trading-card games like CryptoKitties. CryptoKitties is a trading-card style game built on the Ethereum blockchain. Players can buy, sell, and breed cats, with each cat being unique.

CryptoKitties is built on a collection of smart contracts that provides an open-source Application Binary Interface (ABI) for interacting with the KittyVerse — the virtual world of the CryptoKitties application. An ABI simply allows you to call functions in a contract and receive any returned data. The KittyBase code may look like this:

Contract KittyBase is KittyAccessControl {
	event Birth(address owner, uint256 kittyId, uint256 matronId, uint256 sireId, uint256 genes);
	event Transfer(address from, address to, uint256 tokenId);
    struct Kitty {
        uint256 genes;
        uint64 birthTime;
        uint64 cooldownEndBlock;
        uint32 matronId;
        uint32 sireId;
        uint32 siringWithId;
        uint16 cooldownIndex;
        uint16 generation;
    }
	[...]
    function _transfer(address _from, address _to, uint256 _tokenId) internal {
    ...
    }
    function _createKitty(uint256 _matronId, uint256 _sireId, uint256 _generation, uint256 _genes, address _owner) internal returns (uint) {
    ...
    }
	[...]
}

Besides defining what a Kitty is, this contract defines two basic functions for transferring and creating kitties. Both are internal and can only be called by contracts that implement KittyBase. The KittyOwnership contract implements both ERC-721 and KittyBase, and implements an external transfer function that calls the internal _transfer function. This code is compiled into bytecode written to the blockchain.

By implementing a standardised interface like ERC-721, smart contracts that aren’t specifically aware of CryptoKitties can still interact with the KittyVerse. The CryptoKitties ABI functions allow users to create distributed apps (dApps), of their own design on top of the KittyVerse, and allow other users to use their dApps. This extensibility helps demonstrate the potential of smart contracts.

How is this so different?

Smart contracts are, by definition, public. Everyone can see the terms and understand where the money goes. This is a radically different approach to providing transparency and accountability. Because all contracts and transactions are public and verified by consensus, trust is distributed between the people, rather than centralized in a few big institutions.

The trust given to institutions is historic in that we trust them because they have previously demonstrated trustworthiness.

The trust placed in consensus-based algorithms is based on the assumption that most people are honest, or more accurately, that no sufficiently large subset of people can collude to produce a malicious outcome. This is the democratisation of trust.

In the case of the DAO attack, a majority of nodes agreed to accept an “irregular” state transition. This effectively undid the damage of the attack and demonstrates how, at least in the world of blockchain, perception is reality. Because most people “believed” (accepted) this irregular block, it became a “real,” valid block. Most people think of the blockchain as immutable, and trust the power of consensus to ensure correctness, however if enough people agree to do something irregular, they don’t have to keep the rules.

So where does Cloudflare fit in?

Accessing the Ethereum network and its attendant benefits directly requires running complex software, including downloading and cryptographically verifying hundreds of gigabytes of data, which apart from producing technical barriers to entry for users, can also exclude people with low-power devices.

To help those users and devices access the Ethereum network, the Cloudflare Ethereum gateway allows any device capable of accessing the web to interact with the Ethereum network in a safe, reliable way.

Through our gateway, not only can you explore the blockchain, but if you give our gateway a signed transaction, we’ll push it to the network to allow miners to add it to their blockchain. This means that you can send Ether and even put new contracts on the blockchain without having to run a node.

“But Jonathan,” I hear you say, “by providing a gateway aren’t you just making Cloudflare a centralizing institution?”

That’s a fair question. Thankfully, Cloudflare won’t be alone in offering these gateways. We’re joining alongside organizations, such as Infura, to expand the constellation of gateways that already exist. We hope that, by providing a fast, reliable service, we can enable people who never previously used smart-contracts to do so, and in so doing bring the benefits they offer to billions of regular Internet users.

“We’re excited that Cloudflare is bringing their infrastructure expertise to the Ethereum ecosystem. Infura has always believed in the importance of standardized, open APIs and compatibility between gateway providers, so we look forward to collaborating with their team to build a better distributed web.” – E.G. Galano, Infura co-founder.

By providing a gateway to the Ethereum network, we help users make the jump from general web-user to cryptocurrency native, and eventually make the distributed web a fundamental part of the Internet.

What can you do with Cloudflare’s Gateway?

Visit cloudflare-eth.com to interact with our example app. But to really explore the Ethereum world, access the RPC API, where you can do anything that can be done on the Ethereum network itself, from examining contracts, to transferring funds.

Our Gateway accepts POST requests containing JSON. For a complete list of calls, visit the Ethereum github page. So, to get the block number of the most recent block, you could run:

curl https://cloudflare-eth.com -H "Content-Type: application/json" --data '{"jsonrpc":"2.0","method":"eth_blockNumber","params":[],"id":1}'

and you would get a response something like this:

{
  "jsonrpc": "2.0",
  "id": 1,
  "result": "0x780f17"
}

We also invite developers to build dApps based on our Ethereum gateway using our API. Our API allows developers to build websites powered by the Ethereum blockchain. Check out developer docs to get started. If you want to read more about how Ethereum works check out this deep dive.

The architecture

Cloudflare is uniquely positioned to host an Ethereum gateway, and we have the utmost faith in the products we offer to customers. This is why the Cloudflare Ethereum gateway runs as a Cloudflare customer and we dogfood our own products to provide a fast and reliable gateway. The domain we run the gateway on (https://cloudflare-eth.com) uses Cloudflare Workers to cache responses for popular queries made to the gateway. Responses for these queries are answered directly from the Cloudflare edge, which can result in a ~6x speed-up.

We also use Load balancing and Argo Tunnel for fast, redundant, and secure content delivery. With Argo Smart Routing enabled, requests and responses to our Ethereum gateway are tunnelled directly from our Ethereum node to the Cloudflare edge using the best possible routing.

Cloudflare's Ethereum Gateway

Similar to our IPFS gateway, cloudflare-eth.com is an SSL for SaaS provider. This means that anyone can set up the Cloudflare Ethereum gateway as a backend for access to the Ethereum network through their own registered domains. For more details on how to set up your own domain with this functionality, see the Ethereum tab on cloudflare.com/distributed-web-gateway.

With these features, you can use Cloudflare’s Distributed Web Gateway to create a fully decentralized website with an interactive backend that allows interaction with the IPFS and Ethereum networks. For example, you can host your content on IPFS (using something like Pinata to pin the files), and then host the website backend as a smart contract on Ethereum. This architecture does not require a centralized server for hosting files or the actual website. Added to the power, speed, and security provided by Cloudflare’s edge network, your website is delivered to users around the world with unparalleled efficiency.

Embracing a distributed future

At Cloudflare, we support technologies that help distribute trust. By providing a gateway to the Ethereum network, we hope to facilitate the growth of a decentralized future.

We thank the Ethereum Foundation for their support of a new gateway in expanding the distributed web:

“Cloudflare’s Ethereum Gateway increases the options for thin-client applications as well as decentralization of the Ethereum ecosystem, and I can’t think of a better person to do this work than Cloudflare. Allowing access through a user’s custom hostname is a particularly nice touch. Bravo.” – Dr. Virgil Griffith, Head of Special Projects, Ethereum Foundation.

We hope that by allowing anyone to use the gateway as the backend for their domain, we make the Ethereum network more accessible for everyone; with the added speed and security brought by serving this content directly from Cloudflare’s global edge network.

So, go forth and build our vision – the distributed crypto-future!

Cloudflare's Ethereum Gateway

New – Amazon Managed Blockchain – Create & Manage Scalable Blockchain Networks

Post Syndicated from Jeff Barr original https://aws.amazon.com/blogs/aws/new-amazon-managed-blockchain-create-manage-scalable-blockchain-networks/

Trust is a wonderful thing, and is the basis for almost every business and personal relationship or transaction. In some cases, trust is built up over an extended period of time, reinforced with each successful transaction and seen as an integral part of the relationship. In other situations, there’s no time to accumulate trust and other mechanisms must be used instead. The parties must find a way to successfully complete the transaction in the absence of trust. Today, emerging blockchain technologies such as Hyperledger Fabric and Ethereum fill this important need, allowing parties to come to consensus regarding the validity of a proposed transaction and create an unalterable digital record (commonly known as a ledger) of each transaction in the absence of trust.

Amazon Managed Blockchain
We announced Amazon Managed Blockchain at AWS re:Invent 2018 and invited you to sign up for a preview. I am happy to announce that the preview is complete and that Amazon Managed Blockchain is now available for production use in the US East (N. Virginia) Region. You can use it to create scalable blockchain networks that use the Hyperledger Fabric open source framework, with Ethereum in the works. As you will see in a minute, you can create your network in minutes. Once created, you can easily manage and maintain your blockchain network. You can manage certificates, invite new members, and scale out peer node capacity in order to process transactions more quickly.

The blockchain networks that you create with Amazon Managed Blockchain can span multiple AWS accounts so that a group of members can execute transactions and share data without a central authority. New members can easily launch and configure peer nodes that process transaction requests and store a copy of the ledger.

Using Amazon Managed Blockchain
I can create my own scalable blockchain network from the AWS Management Console, AWS Command Line Interface (CLI) (aws managedblockchain create-network), or API (CreateNetwork). To get started, I open the Amazon Managed Blockchain Console and click Create a network:

I need to choose the edition (Starter or Standard) for my network. The Starter Edition is designed for test networks and small production networks, with a maximum of 5 members per network and 2 peer nodes per member. The Standard Edition is designed for scalable production use, with up to 14 members per network and 3 peer nodes per member (check out the Amazon Managed Blockchain Pricing to learn more about both editions). I also enter a name and a description for my network:

Then I establish the voting policy for my network, and click Next to move ahead (read Work with Proposals to learn more about creating and voting on proposals):

Now, I need to create the first member of my network. Each member is a distinct identity within the network, and is visible within the network. I also set up a user name and password for my certificate authority, and click Next:

I review my choices, and click Create network and member:

My network enters the Creating status, and I take a quick break to walk my dog! When I return, my network is Available:

Inviting Members
Now that my network is available, I can invite members by clicking the Members tab:

I can see the current members of my network, both those I own and those owned by others. I click on Propose invitation to invite a new member:

Then I enter the AWS account number of the proposed member and click Create:

This creates a proposal (visible to me and to the other members of the network). I click on the ID to proceed:

I review the proposal, select my identity (block-wizard), and then click Yes to vote:

After enough Yes votes have been received to pass the threshold that I specified when I created the network, the invitation will be extended to the new member, and will be visible in the Invitations section:

If you are building a blockchain network for testing purposes and don’t have access to multiple AWS accounts, you can even invite your own account. After you do this (and vote to let yourself in), you will end up with multiple members in the same account.

Using the Network
Now that the network is running, and has some members, the next step is to create an endpoint in the Virtual Private Cloud (VPC) where I will run my blockchain applications (this feature is powered by AWS PrivateLink). Starting from the detail page for my network, I click Create VPC endpoint:

I choose the desired VPC and the subnets within it, pick a security group, and click Create:

My applications can use the VPC endpoint to communicate with my blockchain network:

The next step is to build applications that make use of the blockchain. To learn how to do this, read Build and deploy an application for Hyperledger Fabric on Amazon Managed Blockchain. You can also read Get Started Creating a Hyperledger Fabric Blockchain Network Using Amazon Managed Blockchain.

Things to Know
As usual, we have a healthy roadmap for this new service. Stay tuned to learn more!

Jeff;

PS – Check out the AWS Blockchain Pub to see a novel use for Amazon Managed Blockchain and AWS DeepLens.

 

Stealing Ethereum by Guessing Weak Private Keys

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/04/stealing_ethere.html

Someone is stealing millions of dollars worth of Ethereum by guessing users’ private keys. Normally this should be impossible, but lots of keys seem to be very weak. Researchers are unsure how those weak keys are being generated and used.

Their paper is here.

The Positive Side-Effects of Blockchain

Post Syndicated from Bozho original https://techblog.bozho.net/the-positive-side-effects-of-blockchain/

Blockchain is a relatively niche technology at the moment, and even thought there’s a lot of hype, its applicability is limited. I’ve been skeptical about its ability to solve all the world’s problems, as many claim, and would rather focus it on solving particular business issues related to trust.

But I’ve been thinking about the positive side-effects and it might actually be one of the best things that have happened to software recently. I don’t like big claims and this sound like one, but bear with me.

Maybe it won’t find its place in much of the business software out there. Maybe in many cases you don’t need a distributed solution because the business case does not lend itself to one. And certainly you won’t be trading virtual coins in unregulated exchanges.

But because of the hype, now everyone knows the basic concepts and building blocks of blockchain. And they are cryptographic – they are hashes, digital signatures, timestamps, merkle trees, hash chains. Every technical and non-technical person in IT has by now at least read a little bit about blockchain to understand what it is.

So as a side effect, most developers and managers are now trust-conscious, and by extension – security conscious. I know it may sound far-fetched, but before blockchain how many developers and managers knew what a digital signature is? Hashes were somewhat more prevalent mostly because of their (sometimes incorrect) use to store passwords, but the PKI was mostly arcane knowledge.

And yes, we all know how TLS certificates work (although, do we?) and that a private key has to be created and used with them, and probably some had a theoretical understanding of digital signatures. And we knew encryption was kind of a good idea at rest and in transit. But putting that in the context of “trust”, “verifiability” and “non-repudiation” was, in my view, something that few people have done mentally.

And now, even by not using blockchain, developers and managers would have the trust concept lurking somewhere in the back of their mind. And my guess would be that more signatures, more hashes and more trusted timestamps will be used just because someone thought “hey, we can make this less prone to manipulation through this cool cryptography that I was reminded about because of blockchain”.

Blockchain won’t be the new internet, but it already has impact on the mode of thinking of people in the software industry. Or at least I hope so.

The post The Positive Side-Effects of Blockchain appeared first on Bozho's tech blog.

Learn about AWS Services & Solutions – April AWS Online Tech Talks

Post Syndicated from Robin Park original https://aws.amazon.com/blogs/aws/learn-about-aws-services-solutions-april-aws-online-tech-talks/

AWS Tech Talks

Join us this April to learn about AWS services and solutions. The AWS Online Tech Talks are live, online presentations that cover a broad range of topics at varying technical levels. These tech talks, led by AWS solutions architects and engineers, feature technical deep dives, live demonstrations, customer examples, and Q&A with AWS experts. Register Now!

Note – All sessions are free and in Pacific Time.

Tech talks this month:

Blockchain

May 2, 2019 | 11:00 AM – 12:00 PM PTHow to Build an Application with Amazon Managed Blockchain – Learn how to build an application on Amazon Managed Blockchain with the help of demo applications and sample code.

Compute

April 29, 2019 | 1:00 PM – 2:00 PM PTHow to Optimize Amazon Elastic Block Store (EBS) for Higher Performance – Learn how to optimize performance and spend on your Amazon Elastic Block Store (EBS) volumes.

May 1, 2019 | 11:00 AM – 12:00 PM PTIntroducing New Amazon EC2 Instances Featuring AMD EPYC and AWS Graviton Processors – See how new Amazon EC2 instance offerings that feature AMD EPYC processors and AWS Graviton processors enable you to optimize performance and cost for your workloads.

Containers

April 23, 2019 | 11:00 AM – 12:00 PM PTDeep Dive on AWS App Mesh – Learn how AWS App Mesh makes it easy to monitor and control communications for services running on AWS.

March 22, 2019 | 9:00 AM – 10:00 AM PTDeep Dive Into Container Networking – Dive deep into microservices networking and how you can build, secure, and manage the communications into, out of, and between the various microservices that make up your application.

Databases

April 23, 2019 | 1:00 PM – 2:00 PM PTSelecting the Right Database for Your Application – Learn how to develop a purpose-built strategy for databases, where you choose the right tool for the job.

April 25, 2019 | 9:00 AM – 10:00 AM PTMastering Amazon DynamoDB ACID Transactions: When and How to Use the New Transactional APIs – Learn how the new Amazon DynamoDB’s transactional APIs simplify the developer experience of making coordinated, all-or-nothing changes to multiple items both within and across tables.

DevOps

April 24, 2019 | 9:00 AM – 10:00 AM PTRunning .NET applications with AWS Elastic Beanstalk Windows Server Platform V2 – Learn about the easiest way to get your .NET applications up and running on AWS Elastic Beanstalk.

Enterprise & Hybrid

April 30, 2019 | 11:00 AM – 12:00 PM PTBusiness Case Teardown: Identify Your Real-World On-Premises and Projected AWS Costs – Discover tools and strategies to help you as you build your value-based business case.

IoT

April 30, 2019 | 9:00 AM – 10:00 AM PTBuilding the Edge of Connected Home – Learn how AWS IoT edge services are enabling smarter products for the connected home.

Machine Learning

April 24, 2019 | 11:00 AM – 12:00 PM PTStart Your Engines and Get Ready to Race in the AWS DeepRacer League – Learn more about reinforcement learning, how to build a model, and compete in the AWS DeepRacer League.

April 30, 2019 | 1:00 PM – 2:00 PM PTDeploying Machine Learning Models in Production – Learn best practices for training and deploying machine learning models.

May 2, 2019 | 9:00 AM – 10:00 AM PTAccelerate Machine Learning Projects with Hundreds of Algorithms and Models in AWS Marketplace – Learn how to use third party algorithms and model packages to accelerate machine learning projects and solve business problems.

Networking & Content Delivery

April 23, 2019 | 9:00 AM – 10:00 AM PTSmart Tips on Application Load Balancers: Advanced Request Routing, Lambda as a Target, and User Authentication – Learn tips and tricks about important Application Load Balancers (ALBs) features that were recently launched.

Productivity & Business Solutions

April 29, 2019 | 11:00 AM – 12:00 PM PTLearn How to Set up Business Calling and Voice Connector in Minutes with Amazon Chime – Learn how Amazon Chime Business Calling and Voice Connector can help you with your business communication needs.

May 1, 2019 | 1:00 PM – 2:00 PM PTBring Voice to Your Workplace – Learn how you can bring voice to your workplace with Alexa for Business.

Serverless

April 25, 2019 | 11:00 AM – 12:00 PM PTModernizing .NET Applications Using the Latest Features on AWS Development Tools for .NET – Get a dive deep and demonstration of the latest updates to the AWS SDK and tools for .NET to make development even easier, more powerful, and more productive.

May 1, 2019 | 9:00 AM – 10:00 AM PTCustomer Showcase: Improving Data Processing Workloads with AWS Step Functions’ Service Integrations – Learn how innovative customers like SkyWatch are coordinating AWS services using AWS Step Functions to improve productivity.

Storage

April 24, 2019 | 1:00 PM – 2:00 PM PTAmazon S3 Glacier Deep Archive: The Cheapest Storage in the Cloud – See how Amazon S3 Glacier Deep Archive offers the lowest cost storage in the cloud, at prices significantly lower than storing and maintaining data in on-premises magnetic tape libraries or archiving data offsite.

This Is My Architecture: Mobile Cryptocurrency Mining

Post Syndicated from Annik Stahl original https://aws.amazon.com/blogs/architecture/this-is-my-architecture-mobile-cryptocurrency-mining/

In North America, approximately 95% of adults over the age of 25 have a bank account. In the developing world, that number is only about 52%. Cryptocurrencies can provide a platform for millions of unbanked people in the world to achieve financial freedom on a more level financial playing field.

Electroneum, a cryptocurrency company located in England, built its cryptocurrency mobile back end on AWS and is using the power of blockchain to unlock the global digital economy for millions of people in the developing world.

Electroneum’s cryptocurrency mobile app allows Electroneum customers in developing countries to transfer ETNs (exchange-traded notes) and pay for goods using their smartphones. Listen in to the discussion between AWS Solutions Architect Toby Knight and Electroneum CTO Barry Last as they explain how the company built its solution. Electroneum’s app is a web application that uses a feedback loop between its web servers and AWS WAF (a web application firewall) to automatically block malicious actors. The system then uses Athena, with a gamified approach, to provide an additional layer of blocking to prevent DDoS attacks. Finally, Electroneum built a serverless, instant payments system using AWS API Gateway, AWS Lambda, and Amazon DynamoDB to help its customers avoid the usual delays in confirming cryptocurrency transactions.

 

Blockchain and Trust

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/02/blockchain_and_.html

In his 2008 white paper that first proposed bitcoin, the anonymous Satoshi Nakamoto concluded with: “We have proposed a system for electronic transactions without relying on trust.” He was referring to blockchain, the system behind bitcoin cryptocurrency. The circumvention of trust is a great promise, but it’s just not true. Yes, bitcoin eliminates certain trusted intermediaries that are inherent in other payment systems like credit cards. But you still have to trust bitcoin — and everything about it.

Much has been written about blockchains and how they displace, reshape, or eliminate trust. But when you analyze both blockchain and trust, you quickly realize that there is much more hype than value. Blockchain solutions are often much worse than what they replace.

First, a caveat. By blockchain, I mean something very specific: the data structures and protocols that make up a public blockchain. These have three essential elements. The first is a distributed (as in multiple copies) but centralized (as in there’s only one) ledger, which is a way of recording what happened and in what order. This ledger is public, meaning that anyone can read it, and immutable, meaning that no one can change what happened in the past.

The second element is the consensus algorithm, which is a way to ensure all the copies of the ledger are the same. This is generally called mining; a critical part of the system is that anyone can participate. It is also distributed, meaning that you don’t have to trust any particular node in the consensus network. It can also be extremely expensive, both in data storage and in the energy required to maintain it. Bitcoin has the most expensive consensus algorithm the world has ever seen, by far.

Finally, the third element is the currency. This is some sort of digital token that has value and is publicly traded. Currency is a necessary element of a blockchain to align the incentives of everyone involved. Transactions involving these tokens are stored on the ledger.

Private blockchains are completely uninteresting. (By this, I mean systems that use the blockchain data structure but don’t have the above three elements.) In general, they have some external limitation on who can interact with the blockchain and its features. These are not anything new; they’re distributed append-only data structures with a list of individuals authorized to add to it. Consensus protocols have been studied in distributed systems for more than 60 years. Append-only data structures have been similarly well covered. They’re blockchains in name only, and — as far as I can tell — the only reason to operate one is to ride on the blockchain hype.

All three elements of a public blockchain fit together as a single network that offers new security properties. The question is: Is it actually good for anything? It’s all a matter of trust.

Trust is essential to society. As a species, humans are wired to trust one another. Society can’t function without trust, and the fact that we mostly don’t even think about it is a measure of how well trust works.

The word “trust” is loaded with many meanings. There’s personal and intimate trust. When we say we trust a friend, we mean that we trust their intentions and know that those intentions will inform their actions. There’s also the less intimate, less personal trust — we might not know someone personally, or know their motivations, but we can trust their future actions. Blockchain enables this sort of trust: We don’t know any bitcoin miners, for example, but we trust that they will follow the mining protocol and make the whole system work.

Most blockchain enthusiasts have a unnaturally narrow definition of trust. They’re fond of catchphrases like “in code we trust,” “in math we trust,” and “in crypto we trust.” This is trust as verification. But verification isn’t the same as trust.

In 2012, I wrote a book about trust and security, Liars and Outliers. In it, I listed four very general systems our species uses to incentivize trustworthy behavior. The first two are morals and reputation. The problem is that they scale only to a certain population size. Primitive systems were good enough for small communities, but larger communities required delegation, and more formalism.

The third is institutions. Institutions have rules and laws that induce people to behave according to the group norm, imposing sanctions on those who do not. In a sense, laws formalize reputation. Finally, the fourth is security systems. These are the wide varieties of security technologies we employ: door locks and tall fences, alarm systems and guards, forensics and audit systems, and so on.

These four elements work together to enable trust. Take banking, for example. Financial institutions, merchants, and individuals are all concerned with their reputations, which prevents theft and fraud. The laws and regulations surrounding every aspect of banking keep everyone in line, including backstops that limit risks in the case of fraud. And there are lots of security systems in place, from anti-counterfeiting technologies to internet-security technologies.

In his 2018 book, Blockchain and the New Architecture of Trust, Kevin Werbach outlines four different “trust architectures.” The first is peer-to-peer trust. This basically corresponds to my morals and reputational systems: pairs of people who come to trust each other. His second is leviathan trust, which corresponds to institutional trust. You can see this working in our system of contracts, which allows parties that don’t trust each other to enter into an agreement because they both trust that a government system will help resolve disputes. His third is intermediary trust. A good example is the credit card system, which allows untrusting buyers and sellers to engage in commerce. His fourth trust architecture is distributed trust. This is emergent trust in the particular security system that is blockchain.

What blockchain does is shift some of the trust in people and institutions to trust in technology. You need to trust the cryptography, the protocols, the software, the computers and the network. And you need to trust them absolutely, because they’re often single points of failure.

When that trust turns out to be misplaced, there is no recourse. If your bitcoin exchange gets hacked, you lose all of your money. If your bitcoin wallet gets hacked, you lose all of your money. If you forget your login credentials, you lose all of your money. If there’s a bug in the code of your smart contract, you lose all of your money. If someone successfully hacks the blockchain security, you lose all of your money. In many ways, trusting technology is harder than trusting people. Would you rather trust a human legal system or the details of some computer code you don’t have the expertise to audit?

Blockchain enthusiasts point to more traditional forms of trust — bank processing fees, for example — as expensive. But blockchain trust is also costly; the cost is just hidden. For bitcoin, that’s the cost of the additional bitcoin mined, the transaction fees, and the enormous environmental waste.

Blockchain doesn’t eliminate the need to trust human institutions. There will always be a big gap that can’t be addressed by technology alone. People still need to be in charge, and there is always a need for governance outside the system. This is obvious in the ongoing debate about changing the bitcoin block size, or in fixing the DAO attack against Ethereum. There’s always a need to override the rules, and there’s always a need for the ability to make permanent rules changes. As long as hard forks are a possibility — that’s when the people in charge of a blockchain step outside the system to change it — people will need to be in charge.

Any blockchain system will have to coexist with other, more conventional systems. Modern banking, for example, is designed to be reversible. Bitcoin is not. That makes it hard to make the two compatible, and the result is often an insecurity. Steve Wozniak was scammed out of $70K in bitcoin because he forgot this.

Blockchain technology is often centralized. Bitcoin might theoretically be based on distributed trust, but in practice, that’s just not true. Just about everyone using bitcoin has to trust one of the few available wallets and use one of the few available exchanges. People have to trust the software and the operating systems and the computers everything is running on. And we’ve seen attacks against wallets and exchanges. We’ve seen Trojans and phishing and password guessing. Criminals have even used flaws in the system that people use to repair their cell phones to steal bitcoin.

Moreover, in any distributed trust system, there are backdoor methods for centralization to creep back in. With bitcoin, there are only a few miners of consequence. There’s one company that provides most of the mining hardware. There are only a few dominant exchanges. To the extent that most people interact with bitcoin, it is through these centralized systems. This also allows for attacks against blockchain-based systems.

These issues are not bugs in current blockchain applications, they’re inherent in how blockchain works. Any evaluation of the security of the system has to take the whole socio-technical system into account. Too many blockchain enthusiasts focus on the technology and ignore the rest.

To the extent that people don’t use bitcoin, it’s because they don’t trust bitcoin. That has nothing to do with the cryptography or the protocols. In fact, a system where you can lose your life savings if you forget your key or download a piece of malware is not particularly trustworthy. No amount of explaining how SHA-256 works to prevent double-spending will fix that.

Similarly, to the extent that people do use blockchains, it is because they trust them. People either own bitcoin or not based on reputation; that’s true even for speculators who own bitcoin simply because they think it will make them rich quickly. People choose a wallet for their cryptocurrency, and an exchange for their transactions, based on reputation. We even evaluate and trust the cryptography that underpins blockchains based on the algorithms’ reputation.

To see how this can fail, look at the various supply-chain security systems that are using blockchain. A blockchain isn’t a necessary feature of any of them. The reasons they’re successful is that everyone has a single software platform to enter their data in. Even though the blockchain systems are built on distributed trust, people don’t necessarily accept that. For example, some companies don’t trust the IBM/Maersk system because it’s not their blockchain.

Irrational? Maybe, but that’s how trust works. It can’t be replaced by algorithms and protocols. It’s much more social than that.

Still, the idea that blockchains can somehow eliminate the need for trust persists. Recently, I received an email from a company that implemented secure messaging using blockchain. It said, in part: “Using the blockchain, as we have done, has eliminated the need for Trust.” This sentiment suggests the writer misunderstands both what blockchain does and how trust works.

Do you need a public blockchain? The answer is almost certainly no. A blockchain probably doesn’t solve the security problems you think it solves. The security problems it solves are probably not the ones you have. (Manipulating audit data is probably not your major security risk.) A false trust in blockchain can itself be a security risk. The inefficiencies, especially in scaling, are probably not worth it. I have looked at many blockchain applications, and all of them could achieve the same security properties without using a blockchain­ — of course, then they wouldn’t have the cool name.

Honestly, cryptocurrencies are useless. They’re only used by speculators looking for quick riches, people who don’t like government-backed currencies, and criminals who want a black-market way to exchange money.

To answer the question of whether the blockchain is needed, ask yourself: Does the blockchain change the system of trust in any meaningful way, or just shift it around? Does it just try to replace trust with verification? Does it strengthen existing trust relationships, or try to go against them? How can trust be abused in the new system, and is this better or worse than the potential abuses in the old system? And lastly: What would your system look like if you didn’t use blockchain at all?

If you ask yourself those questions, it’s likely you’ll choose solutions that don’t use public blockchain. And that’ll be a good thing — especially when the hype dissipates.

This essay previously appeared on Wired.com.

EDITED TO ADD (2/11): Two commentaries on my essay.

I have wanted to write this essay for over a year. The impetus to finally do it came from an invite to speak at the Hyperledger Global Forum in December. This essay is a version of the talk I wrote for that event, made more accessible to a general audience.

It seems to be the season for blockchain takedowns. James Waldo has an excellent essay in Queue. And Nicholas Weaver gave a talk at the Enigma Conference, summarized here. It’s a shortened version of this talk.

EDITED TO ADD (2/17): Reddit thread.

Major Zcash Vulnerability Fixed

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2019/02/major_zcash_vul.html

Zcash just fixed a vulnerability that would have allowed “infinite counterfeit” Zcash.

Like all the other blockchain vulnerabilities and updates, this demonstrates the ridiculousness of the notion that code can replace people, that trust can be encompassed in the protocols, or that human governance is not ncessary.

Blockchain – What Is It Good For? [slides]

Post Syndicated from Bozho original https://techblog.bozho.net/blockchain-what-is-it-good-for-slides/

Last week I gave a 20 minute talk on the way I see blockchain applicability. I’ve always been skeptical of the blockchain hype, having voiced my concerns, my rants and other thoughts on the matter.

I’ve followed actual blockchain projects that didn’t really need blockchain but managed to yield some very good results by digitizing processes, by eliminating human error, and occasionally, by guaranteeing the integrity of data. And recently I read an article that put these observations into perspective – that blockchain is just a tool for digital transformation (a buzzword broadly meaning “doing things on a computer and more efficiently”). That rarely the distributed consensus is needed, let alone public ledgers. But that doesn’t matter, as long as the technology has lead to some processes being digitized and transformed.

So here are the slides from my talk:

And people are usually surprised that I have a blockchain-related company and I’m so skeptical at the same time. But that’s actually logical – I know how the technology works, what problems it solves and how it can be applied in a broad set of domains. And that’s precisely why I don’t think it’s a revolution. It’s a wonderful piece of technological innovation that will no doubt solve some problems much better than they were solved before, but it won’t be the new internet and it won’t change everything.

Doesn’t that skepticism hurt my credibility as a founder of a blockchain-related startup? Not at all – I don’t want to get a project just because of a buzzword – that’s not sustainable anyway. I want to get it because it solves a real problem that the customer has. And to solve it the right way, i.e. with the best technologies available. And blockchain’s underlying mechanisms are a great tool in the toolbox. Just not a revolution.

In order to be revolutionary, something has to bring at least 10 times improvement over existing practices, or make a lot of things possible that weren’t possible before. Blockchain is neither. I got a question from the audience – “well, isn’t it a 10 times innovation in payments?”. My counter-question was: “Have you ever bought something with cryptocurrencies?”. Well, no. It also doesn’t improve 10 times cross-organization integration. Yes, it might help to establish a shared database, but you could’ve done that with existing technology if you needed to.

But if the blockchain hype helped people realize that digital events can be protected, and that stakeholders can exchange data and present proofs to each other that they haven’t modified the data, who cares if the ultimate implementation will be based on Ethereum, Hyperledger, Corda, or just a clever use of digital signatures, timestamps and web services, or perhaps simply merkle trees.

I hope that blockchain gets demystified soon and we all start speaking the same language (so that I don’t need to reassure an audience at a banking summit that – no, we are not doing cryptocurrencies in our blockchain company). Once we get there, we’ll be able to efficiently solve the problems of digital transformation. As for the digital revolution – it is already happening. We are moving everything online. And yes, with centralized services rather than distributed p2p networks, but that’s not a technical issue, it’s a socioeconomic one. And technology by itself is rarely a solution to such problems.

The post Blockchain – What Is It Good For? [slides] appeared first on Bozho's tech blog.

Friday Squid Blogging: Squid Falsely Labeled as Octopus

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/10/friday_squid_bl_648.html

Two New Yorkers have been charged with importing squid from Peru and then reselling it as octopus.

Yet another problem that a blockchain-enabled supply-chain system won’t solve.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.