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This work focuses on the problem of detection and prevention of stolen andmisused secrets (such as private keys) for authentication toward centralizedservices. We propose a solution for such a problem based on theblockchain-based two-factor authentication scheme SmartOTPs, which we modifyfor our purposes and utilize in the setting of two and half-factorauthentication against a centralized service provider. Our proposed solutionconsists of four entities that interact together to ensure authentication: (1)the user, (2) the authenticator, (3) the service provider, and (4) the smartcontract. Out of two and a half factors of our solution, the first factorstands for the private key, and the second and a half factor stands forone-time passwords (OTPs) and their precursors, where OTPs are obtained fromthe precursors (a.k.a., pre-images) by cryptographically secure hashing. Wedescribe the protocol for bootstrapping our approach as well as theauthentication procedure. We make the security analysis of our solution, whereon top of the main attacker model that steals secrets from the client, weanalyze man-in-the-middle attacks and malware tampering with the client. In thecase of stolen credentials, we show that our solution enables the user toimmediately detect the attack occurrence and proceed to re-initialization withfresh credentials.

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