The Tor network and Bitcoin join forces: The significance of proof-of-work in securing privacy

In the digital world, when discussing privacy protection, Tor is often on the frontline of defense. However, like every fortress, this network has its vulnerabilities. Here’s how innovations related to cryptocurrencies can act as a shield for Tor against hostile attacks.

Since mid-2022, the Tor network, known for its emphasis on user privacy, has experienced problems due to “denial of service” (DoS) attacks. Such attacks slowed down the network, and in extreme cases, made it unusable.

However, Tor, not resting on its laurels, in its latest software update, decided to “defend” itself by introducing a mechanism known as “proof of work” (PoW). The same mechanism that underpins and secures Bitcoin. The idea of using “proof of work” to defend the network from attacks had been circulating within the Tor community for many years. Now, it has finally become a reality.

In short, the idea behind this solution is to require potential attackers to use more computational resources to carry out an attack. The ultimate goal? To make attacks less profitable.

The Tor network allows for the privatization of IP addresses of its users. It is also popular among Bitcoin enthusiasts and other cryptocurrency users to enhance their anonymity.

Although both Bitcoin and Tor now utilize the “proof of work” technology, the implementation in this privacy network is somewhat different. The creators of Tor tailored it specifically to defend their network against attacks.

One of the main aspects of this defense is its dynamism. Unlike a system where clients chase a fixed target, in Tor, they are asked to “bid” using their “proof of work” effort. At least that’s how it was explained by the Director of Strategic Communication for the Tor project, Pavel Zoneff.

For those unfamiliar with the terminology: “onion services” are websites or services operating on the Tor network, effectively hiding IP addresses. The network’s algorithm can detect when a page receives an unexpectedly large amount of traffic, for instance from an attacker. At such moments, the “proof of work” mechanism kicks in, requiring users to exert more computational effort to visit the site.

Regular users probably won’t notice this change. However, those trying to attack the network certainly will. Why? Because they’d need to use a lot more computational power to achieve the same effect.

We believe that introducing the “proof-of-work” mechanism will deter attackers, making large-scale attacks costly and impractical while prioritizing legitimate network traffic – Zoneff concluded.

In times when privacy is becoming a scarce commodity, any innovation aimed at its protection is welcome. The Tor network, combined with technology from the world of cryptocurrencies, might represent a significant step towards a safer Internet.

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