What are Zero Trust Protocols and Why Do They Matter for Web3 Interoperability?

As a seasoned cybersecurity analyst with over two decades of experience under my belt, I can confidently say that the Zero Trust model is not just a buzzword but a critical cornerstone in today’s digital landscape. My career has been marked by countless instances where a seemingly secure system was breached because it relied too heavily on trust rather than verifying each interaction independently.


In this digital era, it’s crucial to remain vigilant about your security measures as cybersecurity isn’t something you achieve once and forget. Instead, it’s an ongoing process. The idea of Zero Trust has arisen from the understanding that the internet, a creation of humankind, is the first thing we’ve ever made that we don’t fully comprehend, making constant vigilance necessary.

As a researcher delving into cybersecurity, let me simplify the concept of Zero Trust: This security approach is founded upon the premise that neither individuals nor devices can be implicitly trusted, regardless of their presence within an organization’s network. It’s essential to remember that establishing trust takes years, while malicious software can infiltrate and compromise your organization’s reputation in a matter of seconds.

Zero Trust protocols (ZTPs) provide an approach to tackle traditional issues with blockchain compatibility, doing away with the reliance on centralized links and outdated solutions.

In this write-up, we’ll break down the concept of Zero Trust architecture and show you how Zero Trust Protocols (ZTPs) in the Web3 realm foster genuinely decentralized, trust-free collaboration.

What is Zero Trust?

In simpler terms, Zero Trust security operates under the idea that neither people nor devices can be fully trusted, and authority should not be excessively concentrated in centralized systems.

In simpler terms, Zero Trust is a modern approach to cybersecurity which emphasizes constant verification instead of blind trust. This means that every interaction or access request should be independently authenticated, regardless of whether the user or device has been trusted before. As our digital world grows more intricate and interwoven, the Zero Trust strategy is gaining popularity as a robust solution for maintaining network security.

In today’s technology, user verification systems are crucial, yet their application may differ based on the specific network security framework. One such model is known as the “castle and moat” system, where users themselves authenticate to gain access across the organization’s “moat.” Once they’ve cleared this initial checkpoint, they can navigate within the protected area without requiring additional authentication.

This model provides certain security assurances in a user-friendly environment; however, it presents several difficulties. The boundary needs to be safeguarded against outside aggressors, but an even trickier matter is internal threats. An individual within the system can more effortlessly undermine its integrity – for example, by disclosing data or falling prey to a phishing scam, which in turn weakens the defense against external attackers.

In intricate systems and interconnected networks, the castle-and-moat model progressively loses effectiveness due to the blurring of boundaries. This is because the perimeter becomes harder to control and manage in such scenarios. Consequently, this traditional method is becoming less relevant as businesses and organizations transition towards a more segmented, cloud-based infrastructure.

Zero Trust in Web3

In the digital world of Web3, the concept of trustless interactions is fundamental, serving as a key design element in blockchain networks ever since Bitcoin‘s inception. When viewed individually, these systems (like Bitcoin or Ethereum) are excellent illustrations of Zero Trust Architecture (ZTA), because every user interaction requires a unique cryptographic verification and is publicly validated by the network itself.

However, the castle-and-moat approach is still very commonplace in the Web3 space. This isn’t only a problem related to defending the perimeter against attackers; users cannot verify what happens within the perimeter. Instead, trust has to be assumed and cannot always be taken for granted. From centralized exchanges to centrally-issued stablecoins, Web3 is still far from a zero-trust environment. 

In essence, achieving interoperability has become the most significant hurdle for existing Zero Trust Provisioning (ZTP) systems in Web3. This push for interoperability has given rise to numerous cross-chain protocols that don’t conform to the principles of Zero Trust. Instead, these protocols necessitate trust in a collective group of nodes to transmit messages or assets, with no means to verify each step along the way. Consequently, the lack of perimeter protection made bridges the most vulnerable point in the system at one time, with the funds stored in them becoming an irresistible target for hackers.

Another example is the issuance of wrapped assets, such as Wrapped BTC (WBTC), which depend on the presence and trustworthiness of the entity in control of the smart contract. While these assets provide an effective workaround for the lack of interoperability, they also compromise the zero-trust nature of the DeFi dApps on which they’re traded. 

If the entity responsible for a specific wrapped token were to cease operations tomorrow, the liquidity pool associated with that token on Uniswap or another decentralized exchange (DEX) would quickly lose its value as soon as it was clear that the issuer could no longer be relied upon to redeem the token.

2P-MPC – Leveraging Cryptography for Zero Trust Interoperability

So far, due to the lack of alternative methods, users and developers have been forced to tolerate the potential risks associated with castle-and-moat models that contradict the zero-trust concept within a blockchain system. But now, thanks to 2PC-MPC (Two-Party Computation-Multi-Party Computation) developed by Pera, there’s a groundbreaking solution emerging for preserving zero trust across independent blockchain networks.

The name signifies the process involving two initial signatories, one being the user and the other being the Pera network. The Pera network, made up of numerous or many decentralized nodes, collectively enforces any specified protocol logic. This multi-party aspect is reflected in the signature. With the user’s approval and the verification provided by a decentralized network that confirms transactions openly, the zero-trust principle is preserved across networks.

As an analyst, I find this advancement to be a pivotal shift in our field. For the first time, it empowers developers like myself to incorporate native blockchain assets, such as Bitcoin (BTC) or Ethereum (ETH), directly into our Zero-Trust Protocols (ZTPs), all without relying on external issuers or compromising the zero-trust architecture of the connected blockchain networks and the decentralized applications (dApps) operating within them.

Conclusion

If Web3 truly prioritizes decentralized security, it’s crucial to incorporate Zero-Knowledge Proofs (ZTPs) to discourage reliance on simplistic fortification methods like castles-and-moats. As these alternative solutions can involve significant risks, the survival of the fittest (natural selection) might favor ZTPs as a safer and more lasting security solution in the long run.

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2024-10-03 13:41