• The ever increasing attractiveness for cryptocurrency mining is leaving way for new threats in the cyber space.
• Cryptojacking has become the latest threat to computers worldwide.

How do cryptocurrencies work?

• Cryptocurrencies like Bitcoin are based on the blockchain technology.
• The blockchain technology involves maintaining a digital ledger to publicly record transactions.
• A blockchain is reliant on the network of computers that run the software for the cryptocurrency.
• The computers participate in the relay of information regarding transactions made between holders of the currency.
• These computers in the network are called nodes.
• They can be operated by anyone who downloads the bitcoin software available for free online.
• When a transaction is initiated, encrypted details are transmitted among all nodes.

What is cryptocurrency mining?

• The money in cryptocurrency is not printed. It is rather discovered, or “mined”.
• Mining is used to confirm waiting transactions and then record it into a public ledger called blockchain.
• The web of nodes in blockchain technology includes those operated by miners.
• Miners' objective is to group the outstanding transactions into blocks and then add them to the blockchain.
• A mining hardware competes with others on the network to earn cryptocurrencies.

How does mining work?

• Computers around the world “Mine” for bitcoins competing with each other.
• Adding encrypted transactions to the blockchain is accomplished by the miner's cryptocurrency software.

• This involves solving a complex mathematical puzzle involving the numerical keys to the encryption.
• Once a node has hit upon the right combination, it conveys its success to other nodes.
• Subsequently, other miners drop processing that block and move on to the next.
• The winning node that registers a transaction by adding it to the blockchain is rewarded in Bitcoin.

What are the challenges?

• The cost of mining is often highly expensive.

• High-end machines with substantial computing power are required to solve the puzzle in a timely manner.
• The electricity required to power the hardware also considerably adds to the cost.

Why is mining attractive yet?

• Anonymity - Cryptocurrencies are a boon for individuals or corporations which seek financial anonymity.
• The lack of a central regulatory authority facilitates trade in illegal goods through the virtual currencies.
• Lucrative - Exchanges that trade bitcoin have witnessed massive hike in prices owing to speculation.
• The valuation of a single bitcoin was around Rs.65,ooo in January, 2017.
• Its value had peaked at around Rs.12,60,000 in December 2017.
• Hardware assets - The software for mining cryptocurrencies like bitcoin is open source and available online.
• But the hardware processing speed required to make mining feasible are found only in high-end workstations that are powered by GPUs.
• Leveraging hardware assets to mine for coins is another means to have a share in the process.

What is the latest cryptojacking threat?

• A said earlier, cryptocurrency mining is lucrative but still involves huge costs, diminishing the attractiveness.
• To balance the cost overruns, attackers have started employing malware.
• It is a way to force an entry into the computers of remote users, and then using their hardware to mine for coins.
• This is cryptojacking. It is profitable since it eliminates the cost burden of owning a mining assembly with hundreds of processors.

Who are vulnerable?

• The phenomenon is not restricted to the miniscule minority that trades in cryptocurrencies or uses their systems to mine for coins.
• All users who browse the internet are vulnerable to their systems being ‘cryptojacked’.

• Desktops, laptops, tablets, or even mobile devices can be maliciously subverted without the knowledge of their owners.

How does crptojacking work?

• Cryptojackers usually target popular websites which draw audiences numbering in the millions every day.
• Once the malware patch has been embedded on a website, it infects the web browsers of visitors.
• It slows down their machines, often causing them to overheat.
• Websites and apps that do not charge a fee for consuming their content survive on revenue from digital advertising.
• However, websites like the file-sharing platform have been found to be employing code which hijacks users' system.
• It then uses it for mining cryptocurrency.
• Many websites view this as an alternative source of revenue, bypassing intrusive advertisements.

What is the way forward?

• The transition to a digital economy has made financial services more dependent on technology.
• The emergence of cryptocurrencies has made it even more difficult to check hackers trying to access online finances.
• It is thus crucial to address the rising concern of cryptojacking.
• There are a range of applications that could protect computers from attacks by cryptojackers.
• Some of them inlcude 'NoCoin', 'MalwareBytes', 'minerBlock'.
• While these tools are not completely infallible, they provide a first line of defence against potential security breaches.