According to a report recently published by the Defense Advanced Research Project (DARPA) titled “Are Blockchains Decentralized?”, there are key vulnerabilities that are potentially capable of compromising the supposed “decentralized” nature of blockchain technology.
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The report, conducted in partnership with research firm Trail of Bits, specifically highlights a set of “unintended centralities,” which the authors argue can potentially concentrate the power of blockchains in the hands of a select few individuals or groups. These unintended centralities range from powerful new cryptocurrency miners and outdated computers vulnerable to attacks, to a select group of Internet service providers responsible for handling Bitcoin.
The authors did not discover exploits or weaknesses in the blockchain’s notable cryptography, which is actually described as “quite strong” – at least until quantum computing becomes a reality. Instead, they discovered issues that “subvert the properties of blockchain implementations.”
“We believe that the risks inherent in blockchains and cryptocurrencies have been under-described and often ignored or even ridiculed by those seeking to cash in on this decade’s gold rush,” the authors said in a statement.
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DARPA reportedly contacted Trail of Bits over the past year and asked the company to examine the fundamental properties of blockchains and the potential security risks associated with them. The timing of the report’s publication comes amid a historic drop in the value of Bitcoin and other cryptocurrencies that has many concerned.
Nearly two-thirds (60%) of all Bitcoin traffic traveled through just three ISPs over the past five years, the report found. Additionally, about half of all Bitcoin traffic was routed through Tor. Trail of Bits CEO Dan Guidosaid these providers could potentially have the ability to “rewrite history” by restricting certain transactions and preventing Bitcoin from changing hands altogether.
Then there’s the issue of outdated software. According to the report, about 21% of Bitcoin nodes are running an old version of a core Bitcoin client that is vulnerable to attacks. According to Trail of Bits, “obvious software changes” can actually modify the state of a blockchain, which in turn makes developers a central point of trust in the system uniquely vulnerable to attacks.
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The DARPA report’s warnings echo, in part, recent claims made by prominent Web3 deniers. Arguably the biggest name in the “Web3 isn’t what you think it is” movement is Block CEO and former Twitter kingpin Jack Dorsey . Dorsey has spoken out against venture capital involvement in Web3 companies, calling the supposed new era of the Internet “a centralized entity with a different label.”
