Cryptojacking and Cryptocurrency Mining

What is the issue?

The ever increasing attractiveness for cryptocurrency mining is leaving way for new threats in the cyber space.
Cryptojacking has become the latest threat to computers worldwide.

How do cryptocurrencies work?

Cryptocurrencies like Bitcoin are based on the blockchain technology.
The blockchain technology involves maintaining a digital ledger to publicly record transactions.
A blockchain is reliant on the network of computers that run the software for the cryptocurrency.
The computers participate in the relay of information regarding transactions made between holders of the currency.
These computers in the network are called nodes.
They can be operated by anyone who downloads the bitcoin software available for free online.
When a transaction is initiated, encrypted details are transmitted among all nodes.

What is cryptocurrency mining?

The money in cryptocurrency is not printed. It is rather discovered, or “mined”.
Mining is used to confirm waiting transactions and then record it into a public ledger called blockchain.
The web of nodes in blockchain technology includes those operated by miners.
Miners' objective is to group the outstanding transactions into blocks and then add them to the blockchain.
A mining hardware competes with others on the network to earn cryptocurrencies.

How does mining work?

Computers around the world “Mine” for bitcoins competing with each other.
Adding encrypted transactions to the blockchain is accomplished by the miner's cryptocurrency software.

This involves solving a complex mathematical puzzle involving the numerical keys to the encryption.
Once a node has hit upon the right combination, it conveys its success to other nodes.
Subsequently, other miners drop processing that block and move on to the next.
The winning node that registers a transaction by adding it to the blockchain is rewarded in Bitcoin.

What are the challenges?

High-end machines with substantial computing power are required to solve the puzzle in a timely manner.
The electricity required to power the hardware also considerably adds to the cost.

Why is mining attractive yet?

Anonymity - Cryptocurrencies are a boon for individuals or corporations which seek financial anonymity.
The lack of a central regulatory authority facilitates trade in illegal goods through the virtual currencies.
Lucrative - Exchanges that trade bitcoin have witnessed massive hike in prices owing to speculation.
The valuation of a single bitcoin was around Rs.65,ooo in January, 2017.
Its value had peaked at around Rs.12,60,000 in December 2017.
Hardware assets - The software for mining cryptocurrencies like bitcoin is open source and available online.
But the hardware processing speed required to make mining feasible are found only in high-end workstations that are powered by GPUs.
Leveraging hardware assets to mine for coins is another means to have a share in the process.

What is the latest cryptojacking threat?

A said earlier, cryptocurrency mining is lucrative but still involves huge costs, diminishing the attractiveness.
To balance the cost overruns, attackers have started employing malware.
It is a way to force an entry into the computers of remote users, and then using their hardware to mine for coins.
This is cryptojacking. It is profitable since it eliminates the cost burden of owning a mining assembly with hundreds of processors.

Who are vulnerable?

The phenomenon is not restricted to the miniscule minority that trades in cryptocurrencies or uses their systems to mine for coins.
All users who browse the internet are vulnerable to their systems being ‘cryptojacked’.

Desktops, laptops, tablets, or even mobile devices can be maliciously subverted without the knowledge of their owners.

How does crptojacking work?

Cryptojackers usually target popular websites which draw audiences numbering in the millions every day.
Once the malware patch has been embedded on a website, it infects the web browsers of visitors.
It slows down their machines, often causing them to overheat.
Websites and apps that do not charge a fee for consuming their content survive on revenue from digital advertising.
However, websites like the file-sharing platform have been found to be employing code which hijacks users' system.
It then uses it for mining cryptocurrency.
Many websites view this as an alternative source of revenue, bypassing intrusive advertisements.

What is the way forward?

The transition to a digital economy has made financial services more dependent on technology.
The emergence of cryptocurrencies has made it even more difficult to check hackers trying to access online finances.
It is thus crucial to address the rising concern of cryptojacking.
There are a range of applications that could protect computers from attacks by cryptojackers.
Some of them inlcude 'NoCoin', 'MalwareBytes', 'minerBlock'.
While these tools are not completely infallible, they provide a first line of defence against potential security breaches.

Source: The Hindu