Fireblocks Discovers and Rectifies First Account Abstraction Vulnerability in Ethereum
Summary:
Fireblocks, a cryptocurrency infrastructure firm, uncovered and helped address the first account abstraction vulnerability in Ethereum's system, specifically in the ERC-4337 account abstraction of the UniPass smart contract wallet. The vulnerability, which was discovered during a 'whitehat' hacking operation, could have allowed hackers complete control of UniPass wallets by bypassing Ethereum's account abstraction procedure. Several hundred users with activated ERC-4337 modules were at risk. Fireblocks’ research team was able to exploit the vulnerability in a whitehat operation to rectify the issue swiftly. Ethereum co-founder Vitalik Buterin previously highlighted the challenges of promoting more widespread use of account abstraction functionality.
Fireblocks, a firm specializing in cryptocurrency infrastructure, has uncovered and helped rectify what is known as the first account abstraction vulnerability within Ethereum's system. On October 26, it was revealed that a weakness was found in the ERC-4337 account abstraction of the UniPass smart contract wallet. The issue was identified in hundreds of primary network wallets during an ethical 'whitehat' hacking operation, and both companies collaborated to address the vulnerability.
Fireblocks explained that this flaw could have permitted a potential invader to take complete control of the UniPass wallet by circumventing Ethereum's account abstraction procedure. As outlined in Ethereum’s developer guide on ERC-4337, account abstraction modifies how transactions and smart contracts are handled by the blockchain to offer more versatility and effectiveness.
In typical Ethereum transactions, there are two kinds of accounts: externally owned accounts (EOAs) and contract accounts. Private keys manage EOAs and enable transactions, while smart contract code controls contract accounts. When an EOA carries out a transaction with a contract account, it activates the contract's code.
Account abstraction introduces meta-transactions or broader abstracted accounts, which aren't linked to a particular private key but can instigate transactions and collaborate with smart contracts much like an EOA.
Fireblocks explains that when an account that complies with ERC-4337 performs an action, it uses the Entrypoint contract to ensure only signed transactions are carried out. These accounts generally trust a single, audited EntryPoint contract to verify it has account permission before executing an instruction. But, in theory, a faulty or harmful EntryPoint might bypass the "validateUserOp" call and invoke the execution function directly.
Fireblocks explains that this vulnerability could have enabled an attacker to take over UniPass wallets by replacing its trusted EntryPoint. After this takeover, the infiltrator could drain the wallet's funds. Several hundred users who had activated the ERC-4337 module in their wallets were susceptible to this attack that could be instigated by anyone on the blockchain. The compromised wallets only contained small amounts, and the issue was resolved relatively quickly.
Once it was established that the vulnerability could be manipulated, Fireblocks’ research unit successfully executed a whitehat operation to mend the existing flaws. It exploited the vulnerability: "We suggested this idea to the UniPass team, who took responsibility for carrying out the whitehat operation."
Co-founder of Ethereum, Vitalik Buterin, previously pointed out the challenges in hastening the widespread adoption of account abstraction functionality. These challenges include the requirement for an Ethereum Improvement Proposal (EIP) to transform EOAs into smart contracts and making sure the protocol functions on layer-2 solutions.
Published At
10/27/2023 8:56:19 AM
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