Readit NewsI'd like to get a grasp on this from first principles. Thank you!
The article mentions the core problem: being your own bank is a HUGE risk. I can accept that risk and deal with complex security mechanisms I have to maintain to both protect my own bank and keep it accessible. But a good security guide for crypto is 20-30 pages and requires serious cryptographic understanding. Currently, I can’t expect that from average users.
Everything can be solved over time. Social recovery wallets and user-friendly hardware might become mainstream. But I don’t see that happening in the next 5-6 years, and I fully expect CBDCs to be far along in that time. Then, countries will be a lot less motivated to promote crypto for the unbanked.
Attacker wants Victim's code. Attacker calls the Bank impersonating Victim, and also calls Victim impersonating the Bank. Bank tells Attacker the code check, Attacker tells Victim the code check, Victim sees the match and enters their PIN into the Smart-ID app, and Attacker's phone session with Bank is now fully authenticated and has no more need for Victim.
I’ll leave it at this Wikipedia excerpt: “Cryptosporidium, sometimes informally called crypto” https://en.m.wikipedia.org/wiki/Cryptosporidium
However, a lot of innovations in cryptography these days come from cryptocurrency world. Aggregated signatures, ZK applications, etc.