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Two-factor authentication for the Bitcoin protocol

Christopher Mann (University of Bonn)

Thursday, 23 April 2015, 15:00, b-it 1.25 (cosec meeting room)

Bitcoin is the first (or the second, if you consider eCash) electronic cash system that is used on a larger scale. Its market capitalization is currently 2.95 billion euro and approximately 100,000 transactions are processed each day. Large companies like Expedia and Dell are now accepting Bitcoin in their online stores.

Nevertheless, a lot of Bitcoin users still use Bitcoin wallet software that lacks any advanced security features and is prone to even simple attacks. Already in the end of 2013, ESET has found a variant of the online banking trojan Hesperbot that is also capable of stealing Bitcoins.

In this presentation, we will show the prototype of a Bitcoin wallet with two-factor authentication, which offers its users a similar level of security as online banking solutions do. For the implementation, we used a two-party ECDSA signature protocol which is based on the two-party signature protocol for DSA by MacKenzie&Reiter.