Technology

Fortifying Digital Frontiers: Lessons and Strategies from the Ronin Network Hack

Published

4 months ago

22/08/2024

By Junaid Ijaya and Femi Babatunde

In the ever-evolving space of digital finance, where the currency of choice fluctuates as swiftly as the internet’s whims, the Ronin Network Hack of 2022 served as a stark reminder of the high stakes involved. Picture this: a playground for the modern gamer and financier, where fortunes in the form of digital tokens swing with every click—a universe where even virtual Axies (charming digital creatures) are worth millions. But amidst this digital gold rush, a nefarious plot unfolded, one that would see over $625 million vanish into the ether.

This was not just any heist. It was a breach that shook the very foundations of the blockchain gaming and decentralized finance (DeFi) sectors, highlighting vulnerabilities that went far beyond a mere loss of assets. The Ronin Network, designed as a fortress guarding the bustling economy of Axie Infinity, fell victim to an assault that was as sophisticated as it was devastating. This case study explores the intricate details of the attack, unravelling the layers of security that were bypassed and the subsequent shockwaves that rippled through the digital domain. Here, we explore why this incident stands out in the crowded field of recent cybersecurity breaches, serving as a critical lesson for stakeholders across the fintech landscape.

2.0 Understanding the Ronin Network

Have you ever been curious about what’s behind the surge of new gaming and financial platforms that are more than just fun but also potentially profitable? Meet blockchain technology, specifically Ethereum and its customized sidechain, Ronin, which have been game changers in this field of financial gamification.

Ethereum expands on the basic concept of blockchain, which traditionally supported transactions like those seen in Bitcoin. It introduces a platform where developers can create decentralized applications (dApps) through smart contracts. These are programs that automate agreements and transactions directly on the blockchain, making operations not only more efficient but also secure and transparent.

One of the most innovative applications of this technology is the Ronin Network, tailored specifically for Axie Infinity—a game that has become a standard-bearer for the “Play-to-Earn” model. In Axie Infinity, players engage in more than just gameplay; they participate in a mini-economy, breeding, raising, and battling creatures called Axies to earn cryptocurrency rewards. This setup was ideal for Ethereum’s capabilities, but it highlighted some limitations in terms of transaction costs and speeds. Ronin was developed to address these issues, providing a sidechain solution that supports quicker and cheaper transactions while maintaining robust security.

What Axie Infinity does is showcase how blockchain can bridge entertainment with real economic incentives, turning gaming into a platform not only for enjoyment but also for financial gains. This paradigm shift not only alters how games are played but also introduces a new way for players to engage in and understand economic systems in a digital era.

3.0 Details of the hack

When $625 million disappears from a network designed to be ultra-secure, it makes you wonder: How could this happen? Let’s peel back the layers of the Ronin Network hack to understand the technical nuances and the security lapses that allowed this dramatic heist to unfold.

The Ronin Network, an Ethereum sidechain developed to support the bustling digital economy of Axie Infinity, was breached on March 23, 2022. The attackers used a method known as “social engineering” to initiate the breach. They targeted the network’s validators, who are responsible for confirming transactions on the blockchain. By exploiting the trust and verification mechanisms between these validators, the hackers managed to execute their plan.

But how exactly did they get in? The breach was primarily facilitated through the compromise of private keys. In blockchain technology, private keys are akin to the most secure passwords. Possessing them essentially grants full control over the associated resources. In the case of Ronin, the attackers obtained access to five out of the nine validator nodes. According to reports, this was enough to form a consensus group, allowing them to authorize fraudulent transactions (Sky Mavis, 2022).

Here’s where it gets interesting: the attackers specifically targeted a backdoor in the gas-free RPC node, which was initially instituted to facilitate free transactions for convenience. Once they accessed the RPC node, they forged fake withdrawals. It’s like finding a spare key under the mat; once inside, they had free reign.

This method of attack raises a critical question: In an age where digital fortresses are supposed to be impregnable, how could such a simple oversight occur? The truth is, even the most secure networks can have vulnerabilities that are overlooked until exploited. The Ronin hack underscores the need for rigorous security protocols at every layer of network operations, especially on decentralized platforms where multiple validators are involved. It also highlights the paradox of blockchain security: the balance between user convenience and stringent security measures is a tightrope walk.

In the aftermath of the Ronin Network heist, the spotlight wasn’t just on the staggering $625 million that evaporated but also on the glaring security vulnerabilities it revealed. So, what were these weak spots, and why were they so critical in the scheme of this digital break-in?

First, let’s talk about the over-reliance on a limited number of validators. Ronin operates on a smaller consensus model with only nine validators—a stark contrast to Ethereum’s thousands. While this structure allows for faster and cheaper transactions, it inherently reduces the network’s resistance to certain types of attacks. Essentially, gaining control over a majority of these validators, as the hackers did, is akin to holding the master key to the network. It’s like if only nine people had the code to the city’s main vault; compromise a few, and you’re in.

Moreover, the use of a “gas-free RPC node” exposed a significant security flaw. Designed to ease transaction processes, this node became the hackers’ golden gate. It was supposed to be a convenient feature, but who thought convenience could cost so much? This feature was exploited to initiate unauthorized transactions without triggering standard security protocols. This kind of vulnerability begs the question: In trying to streamline and simplify, are we inadvertently lowering the drawbridge for attackers?

Another critical point was the insufficient security measures around the authentication processes for these validators. The fact that social engineering could be used so effectively to compromise key components of the network’s security architecture suggests a lapse in both technical safeguards and operational security training. It’s a classic case of underestimating the human element in cybersecurity. Could stronger, multifactor authentication and more rigorous security training for all personnel involved have thwarted the attackers?

Reflecting on these vulnerabilities exposes a broader issue in the blockchain space. As networks like Ronin seek to balance performance with decentralization, how much risk are they willing to accept? And more importantly, how can these networks bolster their defences without compromising the principles of decentralization that make blockchain technology so revolutionary? These are not just rhetorical questions but real challenges that need addressing if blockchain networks are to be trusted as the financial infrastructure of the future. Where do you think—where should the line be drawn between convenience and security in blockchain architectures?

Junaid is a cybersecurity engineer and cloud solutions architect and Femi is a technical product manager and quantitative researcher

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P2Vest, Others Invest $1.6m in Billboxx for Cash Flow Solutions

Published

3 days ago

12/12/2024

Dipo Olowookere

By Dipo Olowookere

To tackle the critical cash flow challenges faced by Small and Medium Enterprises (SMEs) across Africa, investors like P2Vest, Norrsken Accelerator, Afrinovation Ventures, Kaleo Ventures, and 54 Collective (formerly known as Founders Factory Africa), have invested about $1.6 million into Billboxx.

The integrated billing-to-payment platform, founded in 2023, successfully closed the pre-seed funding round, which is a mix of debt and equity, due to its innovative approach and commitment to building a more financially secure future for SMEs – the backbone of the African economy.

Manual invoicing and deferred payments often result in delayed payments, stifling many SMEs, but Billboxx’s integrated billing-to-payment platform streamlines billing processes, reduces inefficiencies from manual invoicing and mitigates the impact of deferred payments.

By providing automated billing and invoicing, secure payment facilitation, and tailored cash flow financing, Billboxx empowers businesses to achieve consistent cash flow and focus on growth.

Since its inception, the company has facilitated over $4 million in invoice payments through its MVP launched in May 2023.

The platform boasts strategic integrations with a leading commercial bank in Nigeria, a prominent African payment gateway, and multiple lending partners, enabling seamless payment facilitation via bank transfers, cards, and financing options.

“Cash flow difficulties are the leading cause of business failures in Africa, with delayed invoice payments being a major contributor.

“Billboxx is dedicated to solving these issues with an integrated platform that ensures consistent cash flow and financial resilience for businesses.

“This funding round enables us to expand our impact and empower more SMEs to thrive,” the co-founder and chief executive of BillBoxx, Mr Justus Obaoye, said.

Another co-founder and chief technical officer, Mr Abdulazeez Ogunjobi, noted that, “Delayed invoice payments pose a significant threat to SME growth and survival.

“Our platform not only streamlines the billing-to-payments workflows but also offers strategic embeddings to expedite payments. We aim to alleviate payment concerns and allow SMEs to focus on their core business.”

One of the investors, Bongani Sithole of 54 Collective, said, “We’re enthusiastic about the innovative work the Billboxx team is building. These 3x founders with successful exits under their belts are leveraging their leadership and business experience to tackle a massive pain point for SMEs across Africa.

“We invested in the company due to the large market size of the opportunity, impressive early traction gained from strong early partnerships with notable large corporates and startups, and the solid tech product the team has developed. We’re delighted to back Justus and Abdulazeez as they continue to scale Billboxx.”

Mr Obaoye and Mr Ogunjobi previously co-founded two startups: Charistouch (Carido), successfully acquired by Cars45, and Fixit45, a spin-off from Cars45.

Their leadership experience in large corporations and scaleups such as Schlumberger, Bolt, and OLX add to their strategic insight and entrepreneurial prowess.

Technology

The Rise of Web3 Developers: Why This Career Path is the Future of Tech

Published

5 days ago

10/12/2024

Business Post Contributor

As technology advances, the internet is undergoing a revolutionary shift toward decentralization. Known as Web3, this next phase of the internet is redefining how we interact with digital systems by emphasizing transparency, user ownership, and autonomy.

At the heart of this evolution are Web3 developers—professionals whose expertise in blockchain and decentralized systems is driving innovation and creating exciting new opportunities. Pursuing a Web3 career is not just about adapting to industry trends; it’s about shaping the future of technology. In this article, we’ll explore why Web3 developers are in high demand and how you can step into this promising field.

What is Web3?

Web3 represents the decentralized evolution of the internet. Unlike its predecessor, Web2, where centralized platforms dominate, Web3 leverages blockchain technology to create an ecosystem that is transparent, secure, and community-driven.

Some of the defining features of Web3 include:

Decentralization: Control is distributed among users rather than being concentrated in a single organization.
Transparency: Blockchain technology ensures that all transactions and operations are open and verifiable.
Automation: Smart contracts allow for self-executing agreements, reducing the need for intermediaries.

This paradigm shift has unlocked immense opportunities, particularly for developers who can create, manage, and enhance Web3 applications.

Why a Web3 Career is the Future

Rapid Growth in Blockchain Technology

Blockchain is no longer just about digital currencies; its applications have expanded to include finance, healthcare, logistics, and gaming, among others.

This rapid adoption is driving an unprecedented demand for Web3 developers to build decentralized applications (dApps) and integrate blockchain solutions across various sectors.

High Demand and Competitive Compensation

The demand for Web3 talent has outpaced supply, making it one of the most lucrative fields in tech. Web3 developers often earn significantly more than traditional developers due to their specialized skills.

Many roles offer remote and flexible working arrangements, enabling global opportunities.

Opportunities for Innovation

Web3 is still in its infancy, making it a playground for innovators. From creating decentralized finance systems to building virtual economies in the metaverse, developers have the chance to work on groundbreaking projects that redefine industries.

Key Skills for a Successful Web3 Career

To excel as a Web3 developer, mastering certain skills is essential:

Programming Knowledge: Proficiency in languages like Solidity, Rust, or Go, commonly used in smart contract and blockchain development.
Blockchain Fundamentals: A deep understanding of how decentralized networks function and their architecture.
Smart Contracts: The ability to design and implement self-executing contracts.
Cryptography: Knowledge of encryption techniques to ensure security in applications.

Soft skills such as adaptability and problem-solving are equally important, given the fast-paced nature of the industry.

Benefits of Pursuing a Web3 Career

A career in Web3 comes with a range of unique advantages:

Global Reach: The decentralized nature of Web3 opens doors to international opportunities without geographical limitations.
Future-Ready Skills: Web3 expertise is increasingly sought after, offering a secure and sustainable career path.
Collaborative Ecosystem: Unlike traditional tech environments, Web3 thrives on open collaboration and community-driven development.
Freedom to Innovate: Developers have the flexibility to experiment and contribute to transformative projects.

Steps to Start Your Web3 Journey

Breaking into a Web3 career may seem challenging, but with a focused approach, it’s entirely achievable. Here’s how to get started:

Understand the Basics

Learn the core concepts of blockchain technology, decentralized systems, and smart contracts.
Explore educational resources, tutorials, and online communities for foundational knowledge.

Develop Technical Skills

Master programming languages and frameworks commonly used in blockchain development.
Familiarize yourself with Web3-specific tools and libraries to streamline your workflow.

Build Projects

Start small by creating basic decentralized applications or experimenting with smart contracts.
Showcase your work in a portfolio to demonstrate your capabilities for a potential employer.

Engage with the Community

Join forums, developer meetups, and hackathons to network with others in the field.
Stay updated on industry trends by following Web3-focused discussions and publications.

Continue Learning

The Web3 space is constantly evolving, so staying up-to-date with advancements is crucial.
Seek out certifications or courses to deepen your expertise and credibility.

Challenges and Future Outlook

While the opportunities in Web3 are immense, they come with challenges. The fast-evolving technology requires developers to continually upskill. Additionally, the regulatory landscape for blockchain and decentralized systems is still developing, which may introduce uncertainties. A Web3 career offers more than just a job—it provides a chance to shape the next wave of technological innovation. As industries embrace decentralization, the demand for Web3 developers will only grow. Whether you’re a seasoned tech professional or someone looking to enter the field, now is the perfect time to explore this exciting career path. By stepping into the world of Web3, you’re not just advancing your skills—you’re becoming part of a movement that’s redefining how we connect, transact, and collaborate online. The future of technology is here, and it’s decentralized. Will you be part of it?

Technology

HubPharm Wins FCMB HERccelerate Women in Tech Programme

Published

6 days ago

09/12/2024

Adedapo Adesanya

By Adedapo Adesanya

HubPharm has emerged as the winner of First City Monument Bank (FCMB)’s HERccelerate Showcase Day held recently at Hub One, FCMB’s Innovation Hub in Yaba, Lagos.

The tech accelerator, powered by FCMB’s SheVentures and Hub One and delivered by 8thGear Hub & Venture Studios, was designed to empower women-led startups in Nigeria with the skills and resources needed to secure funding and scale.

HubPharm was the best out of 10 finalists with Midddleman, a platform simplifying payments for African e-commerce businesses sourcing from China coming second, while Onit, a productivity tool designed for African SMEs, secured third place.

The Showcase Day brought together the finalists selected from over 1,000 applications who pitched their innovative solutions to a panel of judges.

Ms Tope Kareem, the co-founder of the startup explained that HubPharm is a digital platform with a retail pharmacy chain which has delivered over 100,000 medications across 15 cities, ensuring 98 per cent on-time delivery with AI-driven logistics.

We plan to explore more options and ensure Nigerians, both at home and abroad, know the importance of prioritizing their health. This funding will enable us to keep growing and making an impact,” she noted.

Speaking on the HERccelerate initiative, Mrs Nnenna Jacob-Ogogo, Group Head of SheVentures, described it as “a testament to what we can achieve when we invest in women. While this is the first pilot of its kind, it is clear that women in tech have the talent, resilience, and vision to drive innovation.”

She also highlighted SheVentures’ broader impact, noting that over the past five years, they have “scaled businesses through four key pillars: access to finance, knowledge, markets, and networks. Our Zero Interest Loan program has provided over N800 million in funding to women entrepreneurs so far, an unprecedented achievement in the industry.”

The top 10 finalists will get free access to Hub One’s coworking space for a year, valued at over N5 million and will also be supported to scale their businesses.

FCMB’s HERccelerate programme is setting a new standard for supporting women in tech, with plans to accelerate over 200 startups in the next five years. By fostering innovation and inclusion, FCMB is shaping a brighter future for women entrepreneurs in Nigeria.