Adam Back makes case for simpler security as Blockstream launches Bitcoin custody system
Blockstream has partnered with Thales to launch a new institutional Bitcoin custody solution that keeps cryptographic operations entirely within secure hardware, aiming to protect against sophisticated cyberattacks.
The solution, announced Friday, executes the entire signing protocol within the protected environment of Thales' hardware security modules (HSMs), unlike conventional MPC implementations that may perform portions of the signing process outside dedicated security hardware.
Simpler Security Approach
Blockstream co-founder and CEO Adam Back, whose Hashcash system helped lay the groundwork for Bitcoin's proof-of-work mechanism, argued that conventional MPC protocols are too complex and require too much communication between devices for practical offline cold storage.
When people talk about MPC, they're talking about some very esoteric and complicated protocols that are hard to secure and are very interactive. So you can't really use them in a cold storage setting.
Addressing Cyber Threats
Back pointed to the Binance $6.3 billion hack as evidence of risks facing internet-connected custody infrastructure, noting attackers compromised employee devices to access the exchange's wallet-signing infrastructure.
Complexity is the enemy of security. And going back to basics is the answer, you know, just cold-store it.
He warned that AI could make security challenges more difficult by helping attackers discover subtle flaws in complex systems, while advocating for institutions to move assets into cold storage to reduce exposure.
Related
