2.1 MFA and Blockchain

Authentication

Authentication is the process of verifying the identity of a user or system before granting access to a resource, service, or application. It is a foundational component of most security systems, ensuring that only authorized users can interact with protected systems.

The standard method of authentication is using combo of Username and Password

Process:

1. The user enters their username and password.

2. The system checks the entered credentials against stored data (often stored in a hashed format to ensure security).

3. If the credentials match, access is granted; otherwise, access is denied.

Security Considerations:

• Weaknesses: Passwords can be guessed, stolen (phishing attacks), or exposed in data breaches.

• Improvements: Stronger passwords, password hashing algorithms, and salting techniques can enhance security.

Two-Factor Authentication (2FA)

https://learn.microsoft.com/it-it/entra/identity/authentication/media/tutorial-enable-azure-mfa/conditional-access-overview.png

• Mechanism: Adds an extra layer of security by requiring the user to present two distinct forms of authentication:

  1. Something the user knows (like a password).

  2. Something the user has (like a phone, hardware token, or an authentication app that generates one-time passcodes).

• Process:

  1. After entering a password, the user must also provide a code sent via SMS or generated by an authentication app (e.g., Google Authenticator, Authy).

  2. The system checks if the provided second factor matches what is expected before granting access.

• Security Considerations:

  • Benefits: Reduces the likelihood of unauthorized access because an attacker would need both the password and the second factor (e.g., the user's phone).

  • Weaknesses: 2FA can still be compromised if the second factor is intercepted, for example, through SIM swapping or phishing.

MFA and Blockchain Integration

Blockchain-based MFA systems aim to overcome limitations of traditional MFA by decentralizing authentication data and improving privacy.

1. Decentralized MFA

• Self-Sovereign Identity (SSI): Users store their identity credentials securely in a blockchain or decentralized storage, eliminating reliance on centralized authentication servers.

• Smart Contracts: Automate the verification of multiple authentication factors within the blockchain.

2. Blockchain MFA Features

• Tamper-Proof Authentication Logs: Transactions or login attempts can be recorded on the blockchain for auditability.

• Tokenized Authentication: Blockchain can issue unique, time-sensitive tokens for MFA.

3. Benefits of Blockchain-Integrated MFA

• Enhanced privacy: User data is encrypted and decentralized.

• Improved resilience: No single point of failure.

• Simplified cross-platform authentication: Works across different applications using the same credentials.

Shield Protocol

Shield Protocol is a blockchain-based security platform that enhances user authentication by integrating decentralized MFA systems. It aims to provide a higher level of security for blockchain and Web3 applications.

Key Features

1. Decentralized Authentication

   • Shield Protocol eliminates reliance on centralized systems for managing authentication credentials.

2. 4-Layer Security

   • Provides four layers of authentication for secure access:

     • PIN: A primary access code.

     • Biometric Authentication: Fingerprint or face recognition.

     • Phrase Authentication: Recovery or seed phrases.

     • Blockchain Authentication: Uses decentralized identity or tokens for verification.

3. Mobile-Based MFA

   • Shield Protocol supports blockchain-based MFA on mobile devices through an app, making it accessible and user-friendly.

4. Cross-Chain Compatibility

   • Supports multiple blockchains, enabling seamless integration across different platforms and networks.

5. Key Management

   • Allows users to securely store and retrieve private keys, ensuring a balance between security and convenience.