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Mastering Bitcoin

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Mastering Bitcoin ( mastering-bitcoin )

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funds and discipline to implement a robust security model, such a design merely rep‐ licates the fragile model of traditional financial networks, plagued by identity theft, corruption, and embezzlement. To take advantage of bitcoin’s unique decentralized se‐ curity model, you have to avoid the temptation of centralized architectures which may feel familiar but ultimately subvert bitcoin’s security. The Root of Trust Traditional security architecture is based upon a concept called the root of trust, which is a trusted core used as the foundation for the security of the overall system or appli‐ cation. Security architecture is developed around the root of trust as a series of con‐ centric circles, like layers in an onion, extending trust outwards from the root. Each layer builds upon the more-trusted inner layer using access controls, digital signatures, encryption, and other security primitives. As software systems become more complex, they are more likely to contain bugs, which make them vulnerable to security compro‐ mise. As a result the more complex a software system becomes, the harder it is to secure. The root of trust concept ensures that most of the trust is placed within the least complex part of the system, and therefore least vulnerable, parts of the system while more com‐ plex software is layered around it. This security architecture is repeated at different scales, first establishing a root of trust within the hardware of a single system, then extending that root of trust through the operating system to higher-level system services, and finally across many servers layered in concentric circles of diminishing trust. Bitcoin security architecture is different. In bitcoin the consensus system creates a trus‐ ted public ledger which is completely de-centralized. A correctly validated blockchain uses the genesis block as the root of trust, building a chain of trust up to the current block. Bitcoin systems can and should use the blockchain as their root of trust. When designing a complex bitcoin application that consists of services on many different systems, you should carefully examine the security architecture in order to ascertain where trust is being placed. Ultimately the only thing that should be explicitly trusted is a fully validated blockchain. If your application explicitly or implicitly vests trust in anything but the blockchain, that should be a source of concern as it introduces points of vulnerability. A good method to evaluate the security architecture of your application is to consider each individual component and evaluate a hypothetical scenario where that component is completely compromised and under the control of a malicious actor. Take each component of your application, in turn, and assess the impacts on the overall security if that component is compromised. If your application is no longer secure when components are compromised that shows that you have implicitly misplaced trust in those components. A bitcoin application without vulnerabilities should be vulnerable only to a compromise of the bitcoin consensus mechanism. Meaning that its root of trust is based on the strongest part of the bitcoin security architecture. The numerous examples of bitcoin exchanges serve to underscore this point as their security architecture and design fails even under the most casual scrutiny. Though cen‐ Security principles | 237

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