Centralized Asset Management and On-Chain Security Solution (CAM) Launched

A one-click solution to exchange’s security issues

aelf’s centralized asset management and on-chain security solution (CAM) is now live on the Iris Testnet. The scheme is a new solution for centralized asset security and management independently developed by aelf.

Centralized exchanges’ main virtual addresses only support transfers and allocating users’ deposit addresses. The main virtual address has no voting control and must add a control address. Each user has a unique voting address and a whitelist system. If exchanges declare that the assets are stolen, freezing the control address is required.

Key Features

This solution can prevent hacking, prevent exchanges from taking control of users’ assets and voting on behalf of users. This solution can fundamentally protect the security of users’ assets.

The solution is open source on Github, and developers can log on to Github to check the code: https://github.com/AElfProject/aelf-centre-asset-management

The traditional centralized exchange model has some disadvantages including the low cost to conduct a malicious action. Exchanges assign each user a deposit address. After the funds are deposited, the amount will be stored in either the cold or hot wallets. When users withdraw their tokens, the exchange transfers the tokens from the hot wallet into the users private address. If the hot wallet runs low on tokens, tokens will be transferred from the cold wallet to the hot wallet.

In this case, the cost of performing a malicious action by the exchange is very low and there is a high chance that the exchange could move users’ assets at will for their own gains, such as voting in place of their users. In addition, exchanges need to manage a large number of private keys. Should the main address be hacked by hackers, it will cause irreparable losses.

The Solution for Centralized Asset Management and On-chain Security supports the establishment of Centre Asset Management contracts on blockchain to limit access to funds by exchanges, while defining different authorities to control assets. The system only allows assets from the user’s virtual address to an exchange’s main virtual address, any control address has the authority to transfer all assets to the main virtual address. The main virtual address can only transfer assists and can not vote, therefore the exchange can not misappropriate users’ assets.

Specific solutions are as follows:

1. Control Address:

• Exchanges define different addresses that can handle different ranges of amounts
• These addresses support replacement
• The amount can be handled by using multiple checks

2. Exchange main virtual address:

• The main virtual address can only transfer assets, and cannot vote.
• Assets disclosure.

3. Top Up Address:

• Exchanges use a virtual address system to assign addresses to users, each user can have a corresponding virtual address.

4. User whitelist system:

• The exchange establishes a whitelist system for each user, which can only be sent to an address on the whitelist and takes 24 hours to take effect. Users who discover that their whitelist has been maliciously changed can contact the exchange as soon as possible to fix it.

aelf’s solution solves the risks of proxy voting and being hacked. aelf will continue to focus on industry challenges, putting priority on the security of users’ assets, continuously developing new solutions for asset security.

aelf believes that only a safe and efficient ecosystem can truly promote the blockchain industry and decentralized applications. aelf will adhere to the original intention of creating a new blockchain economy, starting with aspects of security and efficiency, while striving to provide developers and end users with a reliable public-chain ecosystem.

See the Centralized Asset Management and On-Chain Security Solution (CAM) here: https://aelf.io/gridcn/aelf_Centralized_Asset_Management_and_On-Chain_Security_Solution.pdf

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