What Intel's Foreshadow Flaw Means for the Future of Cryptocurrency

Another dire security flaw was unveiled Tuesday with potential ripple effects across the tech world, including for cryptocurrency projects seeking to leverage certain hardware devices.

Foreshadow might not sound as bad because it impacts a more specific type of Intel hardware: SGX. However, since many cryptocurrency projects plan to use this technology, Foreshadow could have even worse ramifications for the cryptocurrency world.

For one, it appears as though none of the high-profile SGX projects in cryptocurrency are yet being used to secure real money.

Enigma is using it in a unique bid to boost privacy in smart contracts, while wallet hardware company Ledger went as far as to partner with the tech giant Intel to explore using SGX as a new avenue for storing private keys.

"Projects planning to launch soon that rely on SGX should evaluate the vulnerabilities and any updates from Intel with caution for implications to the security of their systems, and should publish such investigations along with their code," he said.

Because Intel has a backdoor into all SGX devices, it's long been a controversial tech avenue for cryptocurrency projects, with enthusiasts often arguing that using the technology puts too much power or trust in one company's hands.

Simply put, in their minds, the Foreshadow vulnerability is a good example of why not to put SGX at the cornerstone of a cryptocurrency project.

Some researchers went as far as to argue most cryptocurrency projects exploring SGX haven't actually used them on real money because Intel has such a bad reputation.

Some security researchers advise to continue on this trend - to not use SGX. But other researchers are more optimistic that SGX, or something like it, could one day play a big role in cryptocurrency, seeing Foreshadow as a positive sign trusted hardware is being battle-tested.

"SGX will need to be repeatedly tested and broken by adversarial researchers until it can claim a strong degree of security, which will take years," Daian said, going on to add that he believes trusted hardware along the lines of SGX may one day play a big role in cryptocurrency.