Researchers at Kudelski Security have managed to break Bitcoin and Ethereum wallets using a novel attack against one of the most popular asymmetric key algorithms of modern cryptography. Although Satoshi Nakamoto’s wallet was not among the 764 wallets they were able to break, it is quite worrying to see that a software issue can make such a modern cryptographic algorithm like ECDSA vulnerable. Analysis of data that comes purely from open sources could reveal a practical weakness of an algorithm that is the fundamental basis of secure internet communication, public key infrastructures, and cryptocurrency transactions. Software Issue Behind the Scenes As with many other times in the history of attacks against cryptographic algorithms, the cause of a successful attack is not a vulnerability in the algorithm itself, but the fact that poor-quality software used an algorithm with insufficient care. It is crucial to obtain “high-quality” random numbers during the calculation....
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