Re: [Bitcoin-development] Merge mining

2013-12-31 Thread rob . golding
 But there's so much 'dry powder' out there (GPUs), I wonder if *not*
 supporting merge-mining is any better? At least the attacker has to do
 some unique PoW, so you hope it's costing them something.

With lots of people having access to 100TH+ there's not really much 
'cost' to doing a 51% attack on an alt-coin beyond a short-term 
diversion away from 'profitable' mining.

At least by supporting merged mining, more miners are likely to 
'support' multiple coin types, thus making a 51% attack from an 
individual/group less straightforward.

 The rational decision for a non-scam altcoin, is to take advantage of
 merged mining to get as much security as possible.

Exactly.

Rob

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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Drak
Has anyone seen the talk at 30c3 on the current NSA capabilities?
https://www.youtube.com/watch?v=b0w36GAyZIA

Specifically they are able to beat the speed of light between you and a
website such that if you communicate with Bob, they can sent competing
packets that will arrive before Bob's packets. They have  realtime deep
packet insertion able to inject arbitrary data into an TCP streams and can
change file downloads **on the fly**. This can be done remotely.

Sourceforge do not have https downloads, so this is yet another reason to
move downloads to somewhere that does - like github.
The NSA has the ability, right now to change every download of bitcoin-qt,
on the fly and the only cure is encryption.

Revealed as part of the presentation is the fact that if the NSA has access
to these capabilities, then so do others and in fact one of the things
revealed yesterday was independently discovered already and published.

Same goes for the bitcoin.org site - why are we dragging our feet on
installing an SSL certificate and redirecting all http to https? While no
solution is perfect, it's a lot better than zero defense.

You can see the irony of disseminating the bitcoin crypto-currency client
 in the clear.

For anyone who has not seen the video. You will be shocked by what is
actually in the wild being used today. It goes way beyond anything
imaginable even in science fiction.

https://www.youtube.com/watch?v=b0w36GAyZIA

Drak
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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Gregory Maxwell
On Tue, Dec 31, 2013 at 5:39 AM, Drak d...@zikula.org wrote:
 The NSA has the ability, right now to change every download of bitcoin-qt,
 on the fly and the only cure is encryption.

Please cut it out with the snake oil pedaling. This is really over the
top. You're invoking the NSA as the threat here? Okay. The NSA can
trivially compromise an HTTPS download site: even ignoring the CA
insecurity, and government run CAs certificate authorities issue CA
certs to random governments and corporations for dataloss prevention
purposes. Not to mention unparalleled access to exploits.

The downloads are protected by something far stronger than SSL
already, which might even have a chance against the NSA. Actual
signatures of the downloads with offline keys.

I'm all pro-SSL and all that, but you are— piece by piece— really
convincing me that it produces an entirely false sense of security
which is entirely unjustified.

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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Mike Hearn
Given that hardly anyone checks the signatures, it's fair to say downloads
aren't protected by anything at the moment. SSL for downloads can only
raise the bar, never lower it, and if the NSA want to kick off the process
of revoking some of the big CA's then I'm game (assuming anyone detects it
of course) :)

Anyway, nobody is dragging feet, the problem is right now we get what is
effectively a huge free subsidy from github and SourceForge for site
hosting. The cost is no SSL. So getting SSL would require that we pay for
it ourselves, but the primary method we have for funding public
goods/infrastructure (the Foundation) which is the subject of various
conspiracy theories. Jeremy has made a generous offer further up the
thread, the issue being I guess none of us know how much traffic we
actually get :( I remember suggesting that we whack Google Analytics or
some other statistics package on when the new website design was done and
that was rejected for similar reasons (organisations are bad).

So we are in a position where we get a subsidy of large but unknown size
from various existing US corporations, but moving to different ones is
controversial, hence no progress :)



On Tue, Dec 31, 2013 at 1:48 PM, Gregory Maxwell gmaxw...@gmail.com wrote:

 On Tue, Dec 31, 2013 at 5:39 AM, Drak d...@zikula.org wrote:
  The NSA has the ability, right now to change every download of
 bitcoin-qt,
  on the fly and the only cure is encryption.

 Please cut it out with the snake oil pedaling. This is really over the
 top. You're invoking the NSA as the threat here? Okay. The NSA can
 trivially compromise an HTTPS download site: even ignoring the CA
 insecurity, and government run CAs certificate authorities issue CA
 certs to random governments and corporations for dataloss prevention
 purposes. Not to mention unparalleled access to exploits.

 The downloads are protected by something far stronger than SSL
 already, which might even have a chance against the NSA. Actual
 signatures of the downloads with offline keys.

 I'm all pro-SSL and all that, but you are— piece by piece— really
 convincing me that it produces an entirely false sense of security
 which is entirely unjustified.


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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Benjamin Cordes
Interesting. I think the original BitDNS discussion was more interesting
that what currently is happening with namecoin, see
https://bitcointalk.org/index.php?topic=1790.0

Satoshi said there: 1) IP records don't need to be in the chain, just do
registrar function not DNS.  And CA problem solved, neat.

Besides, ICANN is currently selling out the global public namespace - not
that anybody really cares about such measly topics as the ownership of
global namespaces. And so some guy on the Cayman Islands is now the largest
holder of TLD's.

On Tue, Dec 31, 2013 at 2:48 PM, Gregory Maxwell gmaxw...@gmail.com wrote:

 On Tue, Dec 31, 2013 at 5:39 AM, Drak d...@zikula.org wrote:
  The NSA has the ability, right now to change every download of
 bitcoin-qt,
  on the fly and the only cure is encryption.

 Please cut it out with the snake oil pedaling. This is really over the
 top. You're invoking the NSA as the threat here? Okay. The NSA can
 trivially compromise an HTTPS download site: even ignoring the CA
 insecurity, and government run CAs certificate authorities issue CA
 certs to random governments and corporations for dataloss prevention
 purposes. Not to mention unparalleled access to exploits.

 The downloads are protected by something far stronger than SSL
 already, which might even have a chance against the NSA. Actual
 signatures of the downloads with offline keys.

 I'm all pro-SSL and all that, but you are— piece by piece— really
 convincing me that it produces an entirely false sense of security
 which is entirely unjustified.


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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Jeremy Spilman

I didn't know about the dedicated server meltdown, it wasn't any of my infra. Anyway, my previous offer still stands.One less 'security theater' approach would be if we could provide forward-validation of updates using the blockchain. It's always going to be up to the user the first time they install the wallet to verify the provenance of the binaries/source. From that point forward, we could make it easier if the wallet could detect updates and prove they were valid.This could be as simple as hard-coding a public key into the client and checking a signature on the new binaries. But it could also be more interesting...For example, a well known address on the blockchain corresponds to multi-sig with keys controlled by developers (or whatever key policy the release team wants to impose). A spend from that address announces a new release, and includes the expected hash of the file.You would probably need some way to handle the different release targets. A more rigorous approach could identify all the various releases in terms of a BIP32 xpubkey whose branches would correspond to the different release trains and platform builds. Spends from a node announce the release and the expected hash.This provides zero benefit if the wallet software is already compromised, but I think this would allow trusted automatic update notification, and a trusted way to deliver the expected hashes. It also might resolve some of the consternation around when a release is truly "released", if that's really a problem.I'm not sure how far along the slope you would want to go; 1) announcing updates in the UI, 2) providing a button the user could click to verify a binary matches its expected hash, 3) click to download and verify the upgrade matches the expected hash, 4) click to upgradeFormalizing the release process around a set of privkeys (or split shares of keys) may raise its own set of questions.For the download itself, I've heard the advocates of announcing availability on the blockchain leading to a BitTorrent magnet link, but I also understand objections to adding an entire BitTorrent stack into a wallet.On Tue, 31 Dec 2013 06:23:55 -0800, Mike Hearn m...@plan99.net wrote:The site was actually moved onto a dedicated server temporarily and it

melted down under the load. I wouldn't call that no progress.Oh, it did? When was that? I must have missed this excitement :)Any idea how much load it had?
Perhaps I wasn't clear on the point I was making Drak's threat model
is not improved in the slightest by SSL. It would be improved by
increasing the use of signature checking, e.g. by making it easier.Well, that depends. If you watch Applebaums talk he is pushing TLS pretty hard, and saying that based on the access to the source docs some of their MITM attacks can't beat TLS. It appears that they have the capability to do bulk MITM and rewrite of downloads as Drak says but *not* when TLS is present, that would force more targeted attacks. So to me that implies that TLS does raise the bar and is worth doing.
However if we can't find a server that won't melt under the load, then that'd be an issue. We could consider hosting downloads on AppEngine or something else that can handle both high load and TLS.

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Re: [Bitcoin-development] Dedicated server for bitcoin.org, your thoughts?

2013-12-31 Thread Matt Corallo
We already have a wonderful system for secure updating - gitian-downloader. We 
just neither use it not bother making actual gitian releases so anyone can use 
it to verify signatures of downloads.

Jeremy Spilman jer...@taplink.co wrote:
I didn't know about the dedicated server meltdown, it wasn't any of my 

infra. Anyway, my previous offer still stands.

One less 'security theater' approach would be if we could provide  
forward-validation of updates using the blockchain. It's always going
to  
be up to the user the first time they install the wallet to verify the 

provenance of the binaries/source. From that point forward, we could
make  
it easier if the wallet could detect updates and prove they were valid.

This could be as simple as hard-coding a public key into the client and
 
checking a signature on the new binaries. But it could also be more  
interesting...

For example, a well known address on the blockchain corresponds to  
multi-sig with keys controlled by developers (or whatever key policy
the  
release team wants to impose). A spend from that address announces a
new  
release, and includes the expected hash of the file.

You would probably need some way to handle the different release
targets.  
A more rigorous approach could identify all the various releases in
terms  
of a BIP32 xpubkey whose branches would correspond to the different  
release trains and platform builds. Spends from a node announce the  
release and the expected hash.

This provides zero benefit if the wallet software is already
compromised,  
but I think this would allow trusted automatic update notification, and
a  
trusted way to deliver the expected hashes. It also might resolve some
of  
the consternation around when a release is truly released, if that's 

really a problem.

I'm not sure how far along the slope you would want to go; 1)
announcing  
updates in the UI, 2) providing a button the user could click to verify
a  
binary matches its expected hash, 3) click to download and verify the  
upgrade matches the expected hash, 4) click to upgrade

Formalizing the release process around a set of privkeys (or split
shares  
of keys) may raise its own set of questions.

For the download itself, I've heard the advocates of announcing  
availability on the blockchain leading to a BitTorrent magnet link, but
I  
also understand objections to adding an entire BitTorrent stack into a 

wallet.

On Tue, 31 Dec 2013 06:23:55 -0800, Mike Hearn m...@plan99.net wrote:

 The site was actually moved onto a dedicated server temporarily and
it
 melted down under the load. I wouldn't call that no progress.

 Oh, it did? When was that? I must have missed this excitement :)
Any idea how much load it had?

 Perhaps I wasn't clear on the point I was making Drak's threat model
 is not improved in the slightest by SSL. It would be improved by
 increasing the use of signature checking, e.g. by making it easier.

 Well, that depends. If you watch Applebaums talk he is pushing TLS  
 pretty hard, and saying that based on the access to the source docs
some  
 of their MITM attacks can't beat TLS. It appears that they have the 

 capability to do bulk MITM and rewrite of downloads as Drak says but 

 *not* when TLS is present, that would force more targeted attacks.
So  
 to me that implies that TLS does raise the bar and is worth doing.

 However if we can't find a server that won't melt under the load,
then  
 that'd be an issue. We could consider hosting downloads on AppEngine
or  
 something else that can handle both high load and TLS.



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Re: [Bitcoin-development] The insecurity of merge-mining

2013-12-31 Thread Peter Todd
On Tue, Dec 31, 2013 at 01:14:05AM +, Luke-Jr wrote:
 On Monday, December 30, 2013 11:22:25 PM Peter Todd wrote:
  that you are using merge-mining is a red-flag because without majority, or
  at least near-majority, hashing power an attacker can 51% attack your
  altcoin at negligible cost by re-using existing hashing power.
 
 I strongly disagree on this isolated point. Using the same logic, Bitcoin is 
 vulnerable to an attacker at negligible cost by re-using existing hashing 
 power from mining Namecoin. Any non-scam altcoin is pretty safe using merged 
 mining, since any would-be attacker is going to have it in their interests to 
 invest in the altcoin instead of attacking it. It's only the scam ones that 
 want to pump  dump with no improvements, that are really at risk here.
 
 The rational decision for a non-scam altcoin, is to take advantage of merged 
 mining to get as much security as possible. There are also some possible 
 tricks to get the full security of the bitcoin miners even when not all 
 participate in your altcoin (but this area probably needs some studying to 
 get 
 right).

You assume the value of a crypto-currency is equal to all miners, it's
not.

Suppose I create a merge-mined Zerocoin implementation with a 1:1
BTC/ZTC exchange rate enforced by the software. You can't argue this is
a scamcoin; no-one is getting rich. There's a 1:1 exchange rate so the
only thing you can do with the coin is get some privacy. But inevitably
some miners won't agree that enabling better privacy is a good thing, or
their local governments won't. Either way, they can attack the Zerocoin
merge-mined chain with a marginal cost of nearly zero.

OTOH if the Zerocoin scheme was implemented by embedding ZTC
transactions within standard Bitcoin transactions - even without any
attempt at hiding them - the attackers would need a 50% majority of
hashing power to succeed. Of course potentially slow confirmations is a
trade-off, but that's likely a perfectly OK trade-off in this case.

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Re: [Bitcoin-development] The insecurity of merge-mining

2013-12-31 Thread Luke-Jr
On Wednesday, January 01, 2014 4:53:42 AM Peter Todd wrote:
 On Tue, Dec 31, 2013 at 01:14:05AM +, Luke-Jr wrote:
  On Monday, December 30, 2013 11:22:25 PM Peter Todd wrote:
   that you are using merge-mining is a red-flag because without majority,
   or at least near-majority, hashing power an attacker can 51% attack
   your altcoin at negligible cost by re-using existing hashing power.
  
  I strongly disagree on this isolated point. Using the same logic, Bitcoin
  is vulnerable to an attacker at negligible cost by re-using existing
  hashing power from mining Namecoin. Any non-scam altcoin is pretty safe
  using merged mining, since any would-be attacker is going to have it in
  their interests to invest in the altcoin instead of attacking it. It's
  only the scam ones that want to pump  dump with no improvements, that
  are really at risk here.
  
  The rational decision for a non-scam altcoin, is to take advantage of
  merged mining to get as much security as possible. There are also some
  possible tricks to get the full security of the bitcoin miners even when
  not all participate in your altcoin (but this area probably needs some
  studying to get right).
 
 You assume the value of a crypto-currency is equal to all miners, it's
 not.
 
 Suppose I create a merge-mined Zerocoin implementation with a 1:1
 BTC/ZTC exchange rate enforced by the software. You can't argue this is
 a scamcoin; no-one is getting rich. There's a 1:1 exchange rate so the
 only thing you can do with the coin is get some privacy. But inevitably
 some miners won't agree that enabling better privacy is a good thing, or
 their local governments won't. Either way, they can attack the Zerocoin
 merge-mined chain with a marginal cost of nearly zero.

Not necessarily. If Zerocoin was tied directly to Bitcoin proof-of-work, the 
worst they could do is not-participate by mining empty blocks.

 OTOH if the Zerocoin scheme was implemented by embedding ZTC
 transactions within standard Bitcoin transactions - even without any
 attempt at hiding them - the attackers would need a 50% majority of
 hashing power to succeed. Of course potentially slow confirmations is a
 trade-off, but that's likely a perfectly OK trade-off in this case.

Potentially slow confirmation is also the only shortcoming of using Bitcoin's 
proof-of-work directly.

Luke

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Re: [Bitcoin-development] The insecurity of merge-mining

2013-12-31 Thread Peter Todd
On Wed, Jan 01, 2014 at 05:09:27AM +, Luke-Jr wrote:
  You assume the value of a crypto-currency is equal to all miners, it's
  not.
  
  Suppose I create a merge-mined Zerocoin implementation with a 1:1
  BTC/ZTC exchange rate enforced by the software. You can't argue this is
  a scamcoin; no-one is getting rich. There's a 1:1 exchange rate so the
  only thing you can do with the coin is get some privacy. But inevitably
  some miners won't agree that enabling better privacy is a good thing, or
  their local governments won't. Either way, they can attack the Zerocoin
  merge-mined chain with a marginal cost of nearly zero.
 
 Not necessarily. If Zerocoin was tied directly to Bitcoin proof-of-work, the 
 worst they could do is not-participate by mining empty blocks.

Nope. Tying the alt-coin difficulty to the Bitcoin difficulty isn't some
magic way to avoid a 51% attack - you still need a majority of
consensus. The attackers can still mine a conflicting chain and there's
still no reasonable way to choose between the two chains other than
proof-of-something. Even worse, then can do a data-hiding attack by
mining a conflicting chain without publishing the blockchain data, then
revealing it some time in the future, or just sowing FUD by making it
clear that the mining is happening. Like it or not crypto-coins solve
double-spending with proof-of-publication, and that can't be done
without some kind of mathematically verifiable majority aligned with the
interests of the crypto-coin users.

Recall that my zookeyv(1) and zerocoin alt(2) proposals from last summer
was specifically designed to take that situation into account, and of
course could at best only make it clear that it was happening and how
many Bitcoins needed to be sacrificed to make the chain secure.


1) #bitcoin-wizards, 2013-05-31
2) 
http://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg02472.html

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