For businesses looking to safeguard cryptocurrencies, tokens, important documents or other digital assets, this could be a platform that allows multi-stakeholder custody and governance, supports software and hardware security, and allows visibility of assets and transactions through Web3 checks.
Develop proactive security measures
As the threat landscape continues to evolve at a breakneck pace, in-depth research conducted by attack labs like Ledger Donjon can help security firms keep pace. The team at Ledger Donjon is working to understand how to proactively secure the digital asset ecosystem and set global security standards.
Key projects include the team’s aggressive security research, which uses ethical and white hat hackers to simulate attacks and uncover vulnerabilities in hardware wallets, cryptographic systems and infrastructure.
In November 2022, the Donjon team discovered a vulnerability in Trust Wallet, a web3 wallet platform that was acquired by Binance. They found that the seed-phrase generation was not random enough, Bozon says, allowing the team to enumerate all possible private keys and putting up to $30 million stored in trust wallet accounts at risk. “The entropy wasn’t high enough, the entropy was only 4 billion. It was big enough, but not enough,” he says.
Bozon says there are three key principles that digital-asset protection platforms should implement to increase overall security. First, security providers must create secure algorithms to generate the seed phrase for the private key and perform a thorough security audit of the software. Second, users should use hardware wallets with secure screens instead of software wallets. And finally, any smart contract transaction must include visibility of what is being signed to avoid indiscriminate signature attacks.
Ultimately, the responsibility for protecting these valuable assets lies with both digital asset solution providers and the users themselves. As the value of cryptocurrencies continues to rise, so will the threat landscape as hackers continue to attempt to circumvent new security measures. While digital asset providers, security firms, and wallet solutions should work to create stronger and simpler security to support the cryptocurrency ecosystem, users should also actively seek the necessary information and education to protect themselves and their wallets.
Learn more about how to secure digital assets Laser Academy,
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