SlowMist: Blockchain dark forest selfguard handbook

Blockchain is a great invention that brings about a change in production relations and solves the problem of trust to some degree. Specifically, blockchain creates many “trust” scenarios without the need for centralization and third parties, such as immutability, execution as agreed, and prevention of repudiation. 

 

However, the reality is cruel. There are many misunderstandings about blockchain, and the bad guys will use these misunderstandings to exploit the loophole and steal money from people, causing a lot of financial losses. Today, the crypto world has already become a dark forest.

 

Based on this, Cos, founder of SlowMist Technology, wrote this Blockchain Dark Forest Selfguard Handbook. If you are a cryptocurrency holder or you want to jump into the crypto world in the future, this handbook will help you a lot. You should read this handbook closely and apply its teachings in real life. 

Protect the security of your cryptocurrency.

Security Rules

Please remember the following two security rules to survive the blockchain dark forest.

Zero Trust: Be skeptical, and always be skeptical.

 

Continuous Security Validation: To trust something, you must have the ability to validate it. Make validation a habit.

 

Create A Wallet

First, the private key is your identity. If the private key is lost/stolen, then you lose your identity. Another security principle we should keep in mind is isolation, which means don't put all your eggs in one basket. The more frequently a wallet is used, the more risky it is. Always remember: when you try something new, first prepare a separate wallet and try it out for a while with a small amount of money. 

 

Here are some tips to find the correct official website, such as

  • using Google

  • using popular cryptocurrency market databases, such as CoinMarketCap

  • asking trusted people and friends

 

Back Up Your Wallet

When we talk about backing up a wallet, we mean the backup of your mnemonic phrase. Usually, mnemonic phrases can be categorized as follows:

  • Plain Text

  • Encrypted with a password

  • Multi-signature

  • Shamir's Secret Sharing, or SSS for short

Let's take a look at some of the most common backup tools:

  • Cloud

  • Paper

  • Device

  • Brain

How to Use Your Wallet

1. Cold Wallet

If we want to send cryptocurrency using cold wallets, here are the most commonly used ways:

  • QRCode

  • USB

  • Bluetooth

The risks of using cold wallet to make transfers are as follows:

  • The user interaction security mechanism of "What you see is what you sign" is missing.

  • Users lack relevant background knowledge.

2. Hot Wallet

Hot wallets are more risky as the secret phrase (or private key) might be compromised through cyber attacks. There are three main ways to exploit users’ assets via malicious code or backdoor.

  • The malicious code packages and uploads the users’ secret phrase directly into the hacker-controlled server.

  • When the user initiates a transfer, information such as the recipient address and amount is secretly changed in the wallet backend, and it is difficult for the user to notice.

  • Corrupting the random number entropy associated with the generation of secret phrases, which makes them relatively easy to hack.

What to Do If You Get hacked

  • Stop loss first

  • Protect the scene

  • Root cause analysis

  • Source tracing


Website:https://www.slowmist.com/

GitHub: https://github.com/slowmist/Blockchain-dark-forest-selfguard-handbook/