The recent loss of billions of dollars’ worth of cryptocurrencies could have been stopped, and the solution to the security problem is confidential computing. With the use of confidential computing, sensitive data can be kept separate from the rest of the system, where it would otherwise be more accessible to hackers. It accomplishes this by employing hardware-based secure enclaves to process encrypted data in memory. The attack on the Ronin Bridge, a $600 million blockchain bridge robbery in which an attacker exploited compromised private keys to counterfeit withdrawals and steal money, is only one example of the numerous instances in this field, according to Fireblocks co-founder and CTO Idan Ofrat. Ofrat’s business specializes in providing digital asset infrastructure for businesses looking to create blockchain-based products, such as banks, cryptocurrency exchanges, NFT marketplaces, and others. According to Ofrat, the Ronin breach “was the biggest attack on cryptocurrencies ever, and to exploit it, the attacker was able to manage one wallet and sign two transactions.” They “probably wouldn’t have gotten to that stage if they had employed confidential computing,” said the author. According to Ofrat, the private key to the wallet should be the first thing you safeguard when thinking about digital asset protection.
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