Blockstream attended to the possibility of a hardware attack on the bitcoin Network sidechained Liquid

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Blockstream attended to the possibility of a hardware attack on the bitcoin Network sidechained Liquid


Technology company Blockstream bothered by the fact that its flagship product Liquid Network can suffer from hardware vulnerabilities. After recent reports that some motherboards produced in China, contain a backdoor that Blockstream has published a post that highlighted the potential consequences of its use.
“When designing servers for a Liquid, we knew the risk that our equipment may be compromised,” admitted Blockstream Thursday. The system Liquid is a commercial “second level” of bitcoin. According to Blockstream, it consists of proprietary module-key and the server to which it connects. If this module is the key fall into the wrong hands (for example, via a backdoor), it can lead to large financial losses.
Network Liquid after the full launch will be used, according to Blockstream plans to transfer a large number of bitcoins between crypto-exchanges. These transfers are always made via the main blockchain, but Blockstream may have inadvertently open a new attack vector on the bitcoin ecosystem. This attack was successful, the cybercriminal will require much sophistication but the amount of reward for penetration into the Liquid network, including through the hardware backdoor that can bring to the implementation of this Scam of the hackers whose actions, for example, may be sponsored by governments.
“Although there are no signs that our motherboard has been compromised, no, this possibility can not be excluded,” – said the company.
As a precaution, Blockstream decided to test their hardware modules on the subject of whether the cost on their equipment Chinese spy chips – according to Bloomberg, this issue also could affect about 30 American companies, including Amazon and Apple. “For an extended analysis, we will send samples of our motherboard third-party companies involved in cybersecurity, wrote Blockstream. In the future we will continue implementing strategies to address risks to our equipment by using various techniques, including an increase in the number of suppliers to one of the compromised provider could not adversely affect the Liquid network”.
“If the vulnerability is confirmed independently and if it is still present on our servers, we believe that it will not be able to affect the network due to a number of security features,” concludes the company.

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