Security Measures

Overview

Security is the cornerstone of AssetSwap's architecture. We implement defense-in-depth strategies combining military-grade encryption, zero-knowledge proofs, hardware security modules, and continuous security monitoring. Our multi-layered approach ensures that user funds and data remain protected against both current and emerging threats.

Cryptographic Architecture

Encryption Standards

AssetSwap employs industry-leading encryption standards:

const ENCRYPTION_STANDARDS = {
    asymmetric: {
        algorithm: 'RSA-4096',
        keySize: 4096,
        padding: 'OAEP-SHA256',
        usage: 'Key exchange, digital signatures'
    },
    symmetric: {
        algorithm: 'AES-256-GCM',
        keySize: 256,
        mode: 'GCM',
        usage: 'Data encryption at rest and in transit'
    },
    hashing: {
        algorithm: 'SHA-3-512',
        outputSize: 512,
        usage: 'Password hashing, checksums'
    },
    keyDerivation: {
        algorithm: 'Argon2id',
        memoryCost: 65536,
        timeCost: 3,
        parallelism: 4,
        usage: 'Password-based key derivation'
    }
};

Key Management System

Hierarchical Key Architecture

class KeyManagementSystem:
    def __init__(self):
        self.master_key = self.generate_master_key()
        self.key_hierarchy = {
            'master': self.master_key,
            'user_keys': {},
            'session_keys': {},
            'ephemeral_keys': {}
        }
        
    def generate_user_keys(self, user_id):
        # Derive user-specific keys from master
        user_master = self.derive_key(
            self.master_key,
            f"user:{user_id}:master"
        )
        
        return {
            'encryption_key': self.derive_key(user_master, 'encryption'),
            'signing_key': self.derive_key(user_master, 'signing'),
            'wallet_key': self.derive_key(user_master, 'wallet')
        }
    
    def rotate_keys(self):
        """Automatic key rotation every 30 days"""
        new_master = self.generate_master_key()
        
        # Re-encrypt all user keys with new master
        for user_id, keys in self.key_hierarchy['user_keys'].items():
            old_data = self.decrypt_with_old_master(keys)
            new_keys = self.encrypt_with_new_master(old_data, new_master)
            self.key_hierarchy['user_keys'][user_id] = new_keys
        
        # Update master key
        self.master_key = new_master
        
        # Secure deletion of old key
        self.secure_delete(self.key_hierarchy['master'])

Hardware Security Module Integration

class HSMIntegration {
    constructor() {
        this.hsm = new GoogleCloudHSM({
            projectId: process.env.GCP_PROJECT_ID,
            locationId: 'global',
            keyRingId: 'assetswap-keys'
        });
    }
    
    async encryptPrivateKey(privateKey, userId) {
        // Generate data encryption key in HSM
        const dekResponse = await this.hsm.generateDataEncryptionKey({
            parent: `projects/${this.projectId}/locations/global/keyRings/assetswap-keys`,
            cryptoKey: `user-key-${userId}`
        });
        
        // Encrypt private key with DEK
        const encrypted = await this.encryptWithDEK(
            privateKey,
            dekResponse.plaintext
        );
        
        // Store encrypted DEK and encrypted private key
        return {
            encryptedKey: encrypted,
            encryptedDEK: dekResponse.ciphertext,
            keyVersion: dekResponse.cryptoKeyVersion,
            algorithm: 'AES-256-GCM'
        };
    }
    
    async decryptPrivateKey(encryptedData, userId) {
        // Decrypt DEK using HSM
        const dekPlaintext = await this.hsm.decryptDataEncryptionKey({
            cryptoKey: `user-key-${userId}`,
            ciphertext: encryptedData.encryptedDEK
        });
        
        // Decrypt private key with DEK
        const privateKey = await this.decryptWithDEK(
            encryptedData.encryptedKey,
            dekPlaintext
        );
        
        // Secure cleanup
        this.secureDelete(dekPlaintext);
        
        return privateKey;
    }
}

Wallet Security

Non-Custodial Architecture

Users maintain complete control over their assets:

class NonCustodialWallet {
    constructor(user) {
        this.user = user;
        this.encryptionService = new EncryptionService();
    }
    
    async generateWallet() {
        // Generate new keypair
        const keypair = Keypair.generate();
        
        // Encrypt private key before storage
        const encryptedPrivateKey = await this.encryptionService.encrypt(
            keypair.secretKey,
            this.user.id
        );
        
        // Store only encrypted version
        await this.storage.save({
            userId: this.user.id,
            publicKey: keypair.publicKey.toString(),
            encryptedPrivateKey: encryptedPrivateKey,
            createdAt: new Date()
        });
        
        // Never store plain private key
        this.secureDelete(keypair.secretKey);
        
        return {
            publicKey: keypair.publicKey.toString(),
            // Private key only exists in memory during transaction signing
        };
    }
    
    async signTransaction(transaction) {
        // Temporarily decrypt private key in secure enclave
        const privateKey = await this.encryptionService.decryptInMemory(
            this.user.encryptedPrivateKey,
            this.user.id
        );
        
        // Sign transaction
        const signedTx = transaction.sign([privateKey]);
        
        // Immediately clear private key from memory
        this.secureDelete(privateKey);
        
        return signedTx;
    }
}

Multi-Signature Support

class MultiSigWallet:
    def __init__(self, signers, threshold):
        self.signers = signers  # List of public keys
        self.threshold = threshold  # Required signatures
        self.pending_transactions = {}
        
    def create_transaction(self, transaction, initiator):
        tx_id = self.generate_tx_id()
        
        self.pending_transactions[tx_id] = {
            'transaction': transaction,
            'initiator': initiator,
            'signatures': [initiator],
            'created_at': time.time(),
            'expires_at': time.time() + 86400  # 24 hour expiry
        }
        
        # Notify other signers
        self.notify_signers(tx_id, transaction)
        
        return tx_id
    
    def sign_transaction(self, tx_id, signer):
        if signer not in self.signers:
            raise PermissionError("Not authorized signer")
        
        tx = self.pending_transactions[tx_id]
        
        if signer not in tx['signatures']:
            tx['signatures'].append(signer)
        
        # Check if threshold reached
        if len(tx['signatures']) >= self.threshold:
            return self.execute_transaction(tx_id)
        
        return {
            'status': 'pending',
            'signatures': len(tx['signatures']),
            'required': self.threshold
        }
    
    def execute_transaction(self, tx_id):
        tx = self.pending_transactions[tx_id]
        
        # Verify all signatures
        for signer in tx['signatures']:
            if not self.verify_signature(tx['transaction'], signer):
                raise SecurityError("Invalid signature")
        
        # Execute transaction
        result = self.blockchain.send_transaction(tx['transaction'])
        
        # Clean up
        del self.pending_transactions[tx_id]
        
        return result

Smart Contract Security

Formal Verification

All smart contracts undergo rigorous formal verification:

// Solana Program with Security Checks
use solana_program::{
    account_info::{next_account_info, AccountInfo},
    entrypoint::ProgramResult,
    program_error::ProgramError,
    pubkey::Pubkey,
};

pub fn process_swap(
    program_id: &Pubkey,
    accounts: &[AccountInfo],
    amount: u64,
) -> ProgramResult {
    let accounts_iter = &mut accounts.iter();
    
    // Account validation
    let user_account = next_account_info(accounts_iter)?;
    let token_account = next_account_info(accounts_iter)?;
    let pool_account = next_account_info(accounts_iter)?;
    
    // Security check 1: Verify account ownership
    if !user_account.is_signer {
        return Err(ProgramError::MissingRequiredSignature);
    }
    
    // Security check 2: Verify program ownership
    if token_account.owner != program_id {
        return Err(ProgramError::IncorrectProgramId);
    }
    
    // Security check 3: Prevent reentrancy
    if pool_account.data.borrow()[0] == 1 {
        return Err(ProgramError::AccountAlreadyInitialized);
    }
    
    // Security check 4: Integer overflow protection
    let new_balance = user_balance
        .checked_add(amount)
        .ok_or(ProgramError::ArithmeticOverflow)?;
    
    // Security check 5: Slippage protection
    if price_impact > MAX_SLIPPAGE {
        return Err(CustomError::ExcessiveSlippage);
    }
    
    // Execute swap with all checks passed
    execute_swap_internal(user_account, token_account, pool_account, amount)
}

Audit Trail

Comprehensive audit logging:

class AuditLogger {
    async logTransaction(transaction) {
        const auditEntry = {
            id: generateAuditId(),
            timestamp: new Date().toISOString(),
            transactionHash: transaction.hash,
            user: transaction.user,
            action: transaction.type,
            amount: transaction.amount,
            tokens: {
                input: transaction.inputToken,
                output: transaction.outputToken
            },
            metadata: {
                ip: transaction.metadata.ip,
                userAgent: transaction.metadata.userAgent,
                sessionId: transaction.metadata.sessionId
            },
            signature: this.signAuditEntry(transaction)
        };
        
        // Store in immutable audit log
        await this.immutableStorage.append(auditEntry);
        
        // Real-time monitoring alert
        if (this.isAnomalous(transaction)) {
            await this.alertSecurityTeam(auditEntry);
        }
        
        return auditEntry;
    }
    
    isAnomalous(transaction) {
        // Machine learning anomaly detection
        const anomalyScore = this.mlModel.predict({
            amount: transaction.amount,
            frequency: this.getUserTransactionFrequency(transaction.user),
            pattern: this.getTransactionPattern(transaction),
            riskScore: this.calculateRiskScore(transaction)
        });
        
        return anomalyScore > ANOMALY_THRESHOLD;
    }
}

Network Security

DDoS Protection

Multi-layer DDoS mitigation:

class DDoSProtection:
    def __init__(self):
        self.rate_limiter = RateLimiter()
        self.traffic_analyzer = TrafficAnalyzer()
        self.blacklist = IPBlacklist()
        
    async def process_request(self, request):
        # Layer 1: IP-based rate limiting
        if not self.rate_limiter.allow(request.ip):
            return self.reject_request(request, "Rate limit exceeded")
        
        # Layer 2: Pattern-based detection
        if self.traffic_analyzer.is_attack_pattern(request):
            self.blacklist.add(request.ip, duration=3600)
            return self.reject_request(request, "Suspicious pattern detected")
        
        # Layer 3: Challenge-response for suspicious requests
        if self.is_suspicious(request):
            return await self.challenge_response(request)
        
        # Layer 4: Geographic filtering
        if self.is_restricted_geography(request.ip):
            return self.reject_request(request, "Geographic restriction")
        
        # Request passes all checks
        return await self.forward_request(request)
    
    def challenge_response(self, request):
        # Implement proof-of-work challenge
        challenge = self.generate_challenge()
        
        return {
            'status': 'challenge',
            'challenge': challenge,
            'difficulty': self.calculate_difficulty(request)
        }

API Security

class APISecurityLayer {
    constructor() {
        this.jwtService = new JWTService();
        this.apiKeyManager = new APIKeyManager();
        this.requestValidator = new RequestValidator();
    }
    
    async authenticate(request) {
        // Extract authentication token
        const token = this.extractToken(request);
        
        if (!token) {
            throw new AuthenticationError('No authentication token provided');
        }
        
        // Validate JWT token
        const payload = await this.jwtService.verify(token);
        
        // Check token revocation
        if (await this.isTokenRevoked(token)) {
            throw new AuthenticationError('Token has been revoked');
        }
        
        // Validate API key for additional security
        if (request.headers['x-api-key']) {
            await this.apiKeyManager.validate(
                request.headers['x-api-key'],
                payload.userId
            );
        }
        
        // Request signature verification
        if (!this.verifyRequestSignature(request, payload)) {
            throw new SecurityError('Invalid request signature');
        }
        
        return payload;
    }
    
    verifyRequestSignature(request, user) {
        const signature = request.headers['x-signature'];
        const timestamp = request.headers['x-timestamp'];
        
        // Prevent replay attacks
        if (Date.now() - timestamp > 30000) { // 30 second window
            return false;
        }
        
        // Verify HMAC signature
        const expectedSignature = this.calculateHMAC(
            request.body,
            user.apiSecret,
            timestamp
        );
        
        return crypto.timingSafeEqual(
            Buffer.from(signature),
            Buffer.from(expectedSignature)
        );
    }
}

Data Security

Encryption at Rest

class DataEncryption {
    async encryptSensitiveData(data, classification) {
        const encryptionLevel = this.getEncryptionLevel(classification);
        
        switch (encryptionLevel) {
            case 'CRITICAL':
                // Hardware security module encryption
                return await this.hsmEncrypt(data);
                
            case 'HIGH':
                // AES-256-GCM with key rotation
                return await this.aes256Encrypt(data, {
                    rotateKey: true,
                    additionalData: this.getAAD()
                });
                
            case 'MEDIUM':
                // Standard AES encryption
                return await this.standardEncrypt(data);
                
            default:
                // Basic encryption for low sensitivity
                return await this.basicEncrypt(data);
        }
    }
    
    getEncryptionLevel(classification) {
        const levels = {
            'private_keys': 'CRITICAL',
            'personal_data': 'HIGH',
            'transaction_data': 'HIGH',
            'analytics_data': 'MEDIUM',
            'public_data': 'LOW'
        };
        
        return levels[classification] || 'LOW';
    }
}

Zero-Knowledge Proofs

// Zero-knowledge proof for balance verification
use bulletproofs::{BulletproofGens, PedersenGens, RangeProof};

pub struct BalanceProof {
    proof: RangeProof,
    commitment: RistrettoPoint,
}

impl BalanceProof {
    pub fn prove_balance(
        balance: u64,
        min_balance: u64,
    ) -> Result<Self, ProofError> {
        let bp_gens = BulletproofGens::new(64, 1);
        let pc_gens = PedersenGens::default();
        
        // Create commitment to balance
        let (commitment, opening) = pc_gens.commit(
            Scalar::from(balance),
            Scalar::random(&mut thread_rng())
        );
        
        // Prove balance >= min_balance without revealing actual balance
        let (proof, committed_value) = RangeProof::prove_single(
            &bp_gens,
            &pc_gens,
            &mut transcript(),
            balance,
            &opening,
            64
        )?;
        
        Ok(BalanceProof {
            proof,
            commitment,
        })
    }
    
    pub fn verify(&self, min_balance: u64) -> bool {
        let bp_gens = BulletproofGens::new(64, 1);
        let pc_gens = PedersenGens::default();
        
        self.proof
            .verify_single(
                &bp_gens,
                &pc_gens,
                &mut transcript(),
                &self.commitment,
                64
            )
            .is_ok()
    }
}

Incident Response

Security Operations Center

24/7 monitoring and response:

class SecurityOperationsCenter:
    def __init__(self):
        self.monitoring = ContinuousMonitoring()
        self.incident_manager = IncidentManager()
        self.response_team = ResponseTeam()
        
    async def monitor_threats(self):
        while True:
            threats = await self.monitoring.detect_threats()
            
            for threat in threats:
                severity = self.assess_severity(threat)
                
                if severity == 'CRITICAL':
                    await self.immediate_response(threat)
                elif severity == 'HIGH':
                    await self.escalate_to_team(threat)
                else:
                    await self.log_and_monitor(threat)
            
            await asyncio.sleep(1)  # Continuous monitoring
    
    async def immediate_response(self, threat):
        # Automatic containment
        await self.contain_threat(threat)
        
        # Alert response team
        await self.response_team.alert(threat, priority='CRITICAL')
        
        # Initiate incident response plan
        incident = await self.incident_manager.create_incident(threat)
        
        # Execute automated remediation
        await self.automated_remediation(incident)
        
        return incident
    
    async def automated_remediation(self, incident):
        remediation_actions = {
            'unauthorized_access': self.revoke_access,
            'suspicious_transaction': self.freeze_transaction,
            'ddos_attack': self.enable_ddos_protection,
            'smart_contract_exploit': self.pause_contract,
            'key_compromise': self.rotate_keys
        }
        
        action = remediation_actions.get(incident.type)
        if action:
            await action(incident)

Disaster Recovery

class DisasterRecovery {
    constructor() {
        this.backupService = new BackupService();
        this.replicationService = new ReplicationService();
        this.failoverController = new FailoverController();
    }
    
    async executeRecoveryPlan(disaster) {
        const recoverySteps = [
            this.assessDamage,
            this.activateBackupSystems,
            this.restoreData,
            this.validateIntegrity,
            this.resumeOperations
        ];
        
        const results = [];
        
        for (const step of recoverySteps) {
            try {
                const result = await step.call(this, disaster);
                results.push({
                    step: step.name,
                    success: true,
                    result
                });
            } catch (error) {
                results.push({
                    step: step.name,
                    success: false,
                    error: error.message
                });
                
                // Attempt alternative recovery path
                await this.alternativeRecovery(step, disaster);
            }
        }
        
        return {
            disaster: disaster,
            recoveryTime: Date.now() - disaster.startTime,
            results: results
        };
    }
}

Compliance and Privacy

Data Privacy

GDPR and regulatory compliance:

class PrivacyCompliance {
    async handleDataRequest(request, user) {
        switch (request.type) {
            case 'ACCESS':
                return await this.provideDataAccess(user);
                
            case 'DELETION':
                return await this.deleteUserData(user);
                
            case 'PORTABILITY':
                return await this.exportUserData(user);
                
            case 'RECTIFICATION':
                return await this.updateUserData(user, request.updates);
                
            default:
                throw new Error('Unknown request type');
        }
    }
    
    async deleteUserData(user) {
        // Soft delete with retention for legal requirements
        const retentionPeriod = this.getRetentionPeriod(user.jurisdiction);
        
        await this.database.softDelete(user.id, {
            retentionDays: retentionPeriod,
            reason: 'User requested deletion',
            timestamp: new Date()
        });
        
        // Immediate anonymization
        await this.anonymizeData(user.id);
        
        // Schedule permanent deletion
        await this.scheduler.schedule(
            'permanent_deletion',
            user.id,
            retentionPeriod
        );
        
        return {
            status: 'deleted',
            retentionPeriod: retentionPeriod,
            permanentDeletionDate: new Date(
                Date.now() + retentionPeriod * 86400000
            )
        };
    }
}

Conclusion

AssetSwap's security architecture represents the gold standard in DeFi security. Through our comprehensive approach combining advanced cryptography, hardware security modules, continuous monitoring, and proactive threat response, we ensure that user assets and data remain protected against all known attack vectors.

Our commitment to security extends beyond technical measures to include regular audits, bug bounty programs, and transparent security practices. As threats evolve, so does our security infrastructure, ensuring that AssetSwap remains the most secure platform for decentralized trading.

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