XYO Network: The Red Paper and How to Protect Yourself against Threats
The team behind the XYO network wants to change the way we approach smart contracts. In the path to making that happen, they have become self-aware of their shortcomings, and they are more than ready to deal with them.
XYO’s offering stands out over the flood of ICO’s cluttering the market right. The company is offering a trustless, decentralized network that using cryptographic protocols and a feature called zero-knowledge proof can provide on-point geographic location and verification to carry out a smart contract. Since the basis of the ecosystem is to be a trustless platform, the network it’s bound to come across a few vulnerabilities. The team behind XYO has deemed necessary to put out a Red Paper detailing the type of disruptions the network could face as well as the solutions they have in place for each one of them. The move has been perceived as bold, but also a welcomed one. Not many ICO initiatives go above the call of duty revealing their shortcomings and the solutions they have in place for them. Let’s take a look at some of the listed issues in XYO’s Red Paper:
Poison the Well
In the technical world a “poison the well” attack happens when a malicious party injects corrupted data to disrupt the accuracy of a system that relies on a constant influx of real-time data to function properly. In the XYO network, such an attack could scramble the geo-location features tied to the token utility. To deal with the problems generated by this type of attack the XYO network has an archivist network functioning as a backup with up to date information stored in real time that will be used to locate the point of insertion of the bad data and extract it from said point. The archivist data will also provide all the geographical information necessary to punish the culprit responsible for the attack with a total ban from the network and a report to the authorities.
This type of attack consists on fake discredit from malicious data to render a node into a non-functional state; it’s usually used in open communities to thin out the competition of multiple actors offering the same type of service. The damage that creates in closed networks is usually fatal and forces the node to completely withdrawn from the ecosystem. In the XYO network, there is no room for such a scheme to happen. The network has a rating system for each sentinel node that establishes their reputation from a verified point of origin in the Blockchain. The only way an assassination attack can affect a user is by having their smart device destroyed, but the data log will mitigate the impact of the attack.
This type of attack happens when forged data passes as correct in the XYO Network to generate financial rewards inside the platform. This can only happen with scam methods such as multi-chain, are carried over by the attacker to maintain multiple versions of a chain in various locations at the same time. The plan in place to deal with this type of scam is the check the archivist data for the signed ledgers of communication of each sentinel node. If the same type of data is reported from more than one different location point, the network will automatically remove all the chains related to the malicious actor and ban the user from the network for life.
This type of attack happens when multiples nodes are generated from a single device; it’s one of the most straightforward methods to attack to the XYO platform because the network doesn’t assign unique IDs to the devices acting as doors to it. Fortunately, this type of attack can also be easily counteracted since the network can police the strength of RSSI signals for each node sentinel. If one of them generates an unexpected overload of information, it will cause the system to shut it down to avoid de-duplication automatically.
As you can see, the company has some solutions in place to some of the most common patterns of scams that happen on unprotected blockchains, they still a long way to go but they committed to work on it. To check the extent of the measures taken by XYO to counteract other types of attack, you can go to :