Detecting and Preventing Credential Misuse in OTP-Based Two and Half Factor Authentication Toward Centralized Services Utilizing Blockchain-Based Identity Management

Abstract

This paper focuses on the problem of detection and prevention of stolen and misused secrets (such as private keys) for authentication toward centralized services. We propose a solution for this problem, based on SmartOTPs, the two-factor authentication scheme against the blockchain, which is intended for smart contract wallets and utilizes one-time passwords (OTPs). We modify SmartOTPs for our purposes and utilize them in the setting of two-and-a-half-factor authentication against a centralized service provider. Out of two and a half factors of our solution, the first factor stands for the private key, and the second and a half factor stands for OTPs and their precursors (a.k.a., pre-images), where OTPs are obtained from the precursors by cryptoaraphically secure hashing. We describe the protocol for bootstrapping our approach as well as the authentication procedure. In the case of stolen creden-tials from the client, we show that our solution enables the user to immediately detect it and proceed to re-initialization with fresh credentials. We utilize blockchain-based identity management and decentralized identities of users to simplify the overhead of the registration process and reinitialization. © 2023 IEEE.