With the explosive growth of the cryptocurrency market, cryptocurrency exchanges are increasingly becoming the targets of attacks carried out by hackers. In particular, DDoS attacks are one of the most common forms of cyberattacks. In the article below, Ecoinomic.io will provide an overview of DDoS attacks on cryptocurrency exchanges.
What is a DDoS attack?
DDoS (Distributed Denial of Service) is a form of attack that prevents normal traffic from valid users to a server, service or web resource. A DDoS attack, which stands for "distributed denial of service" is a malicious attempt to disrupt the normal traffic of a targeted server, service, or network by overwhelming its target or surrounding infrastructure with large amounts of Internet traffic. The ultimate purpose of DDoS is to disrupt the operation of web resources by overwhelming the network with heavy traffic, malicious requests that cause the website to overload or crash servers completely. In some cases, DDoS is an attempt to discredit or damage a competitor's business.
Classification of DDoS attacks
There are three basic types of DDoS attacks:
- Volume-based or volumetric attacks: aimed at controlling all available bandwidth. A good example is DNS amplification, where an attacker spoofs a website address and then sends a DNS name lookup request to a DNS server with a spoofed address.
- Protocol attacks: exploit all available web server usage or other resources. For example, syn flood, an attacker sends a website a large number of TCP (transmission control protocol) requests with fake internet protocol addresses.
- Application attacks: target web applications. This is a most sophisticated and serious type of attack even with the use of few attack machines and low traffic rates.
Fundamental differences between DoS and DDoS
In a Denial-of-Service (DoS) attack, an attacker uses a single internet connection to make spoofing requests or exploit network security vulnerabilities. Meanwhile, DDoS has a larger scale when using thousands (even millions) of connected devices to intercept traffic. The large number of devices used makes it easier for DDoS to succeed.
The impact of DDoS attacks on cryptocurrencies
Most blockchains have a fixed block size and a limit on the number of transactions that fit into a block. Attackers can obstruct legitimate transactions added to the chain by sending spam transactions to fill blocks. Once there, all legitimate transactions will be blocked in the mempool, waiting for the next block. DDoS attacks on cryptocurrency exchanges and blockchains are becoming more and more common. In February 2021, cryptocurrency exchange EXMO suffered a DDoS attack and was unable to operate for almost 5 hours. The Solana network also fell victim to a DDoS attack, which went down for about 4 hours in December 2021. A DDoS attack can take place over a long or short period of time depending on different levels of complexity. The more decentralized the blockchain, the more secure the network system is from DDoS and other attacks. The blockchain remains operational and capable of validating transactions even in the case of several offline nodes . The unaffected nodes will update the latest data, after which, the interrupted nodes will restore and synchronize the entire data. The hashrate rate and the number of nodes directly affect the blockchain's ability to resist DDoS and other related attacks. Therefore, the important solution to protect the blockchain against these attacks is to ensure that nodes have enough capacity to store, process and network bandwidth, building secure codes. >>> See also: Latest Binance subscription guide updated 2022