Ethereum researchers warn of node deanonymization risks

Ethereum (CRYPTO:ETH) researchers have identified a method that could deanonymize over 15% of Ethereum validators, exposing their IP addresses.  

This discovery was detailed in a paper titled Privacy Problems in the P2P Network and What They Tell Us, published on September 21, 2024, on the Ethresearch forum, a respected platform for Ethereum development and research. 

The paper explains how Ethereum’s attestation mechanism, which organizes validators into committees and assigns specific roles, can be exploited.  

By analyzing messages sent between validators, researchers could trace the IP addresses of over 15% of Ethereum validators within three days of data collection.  

The researchers deployed their logging client across four nodes located in Frankfurt, Seoul, Virginia, and Zurich to collect this data.  

“Our deanonymization technique is simple, cost-effective, and capable of identifying over 15% of Ethereum’s validators with only three days of data,” the researchers noted.  

They further suggested that increasing the number of nodes and data collection duration could deanonymize more validators.  

The study also referenced prior deanonymization methods from June 2020, August 2022, and June 2024.  

However, the latest technique is more efficient, requiring less data and network connections to achieve more accurate results. 

The researchers warned of potential attacks using this technique.  

Malicious actors could target block proposers, disrupting the network by forcing them to miss block proposals.  

Although this could threaten network security, it would require over one-third of block proposals to be missed for a significant impact.  

To mitigate the risk of deanonymization, the paper proposed several solutions, including encouraging private peering agreements, adopting privacy-focused protocols like Tor, and anonymizing block producers until they propose blocks.  

At the time of writing, the Ethereum (ETH) price was $2,623.46.