New AI and hardware may crack the code on lost crypto

The following is a guest post by Robert Rhodin, CEO of KeychainX.

As the cryptocurrency market capitalization grows, the diversity and complexity of assets also increases. This growth, supported by advanced technologies and innovations, also increases the number of lost or inaccessible assets. It is estimated that hundreds of billions of dollars in digital currency stay in limbo due to forgotten passwords, hardware failures, and the premature death of asset owners.

According investigation, around six million are missing from the total Bitcoin supply of 21 million. Other report shows that 29 percent of Bitcoin has not moved in the last five years. Of course, this includes long-term investors or those who haven't touched their assets for a long time. However, it is also a fact that some BTC is lost or inaccessible due to forgotten passwords.

Fortunately, the view is not dark at all.

New methods and technologies continue to be developed to recover lost, forgotten or inaccessible digital assets. Regardless of the user's balance, crypto wallet recovery services help recover lost Bitcoin or Ethereum from software or hardware wallets.

This article discusses the advanced solutions used by cryptocurrency recovery companies to recover lost assets. The article emphasizes the technical skills, legal acumen, and client-centered approaches that support recovery efforts.

Advanced AI techniques

At the heart of cryptocurrencies, recovery are cutting-edge technical solutions designed to address a variety of issues, from forgotten passwords to corrupted storage devices.

Artificial Intelligence (AI) models are at the forefront of transforming cryptocurrency recovery strategies. By harnessing the power of machine learning, these models can analyze large data sets to identify patterns and predict the most likely passwords and encryption keys. AI-powered methods find new undetected patterns that are used to find lost passwords.

PASS-GPT, a new AI model based on OpenAI's GPT-2, has 20% more password guesses ability than their counterparts. PASS-GPT uses a technique called progressive sampling to generate difficult-to-crack passwords and evaluates the strengths and weaknesses of the password, revealing its potential usefulness in cryptocurrency recovery efforts.

Based on AI, the hardware that powers these recovery efforts is equally important.

The power of modern GPUs and CPUs

The introduction of new and faster GPUs (graphics processing units) and CPUs (central processing units) provides a substantial boost to the computational capabilities available for cryptocurrency recovery efforts. These advances allow for more effective brute force attacks, which are methods of trying all combinations until the correct password is found.

GPUs are favored in many cryptographic calculations and brute force attack scenarios due to their ability to perform a large number of simple calculations simultaneously. CPUs, on the other hand, are not as efficient as GPUs for parallel processing tasks; CPUs are better suited for memory-intensive encryption algorithms like SCRYPT. Designed to be computationally intensive to deter large-scale custom hardware attacks, SCRYPT serves as a password-based key derivation function.

With the power of GPUs/CPUs, the process runs faster and more efficiently, improving the chances of a successful recovery without compromising asset security.

Algorithms against side channel attacks

Innovations in algorithms play a critical role in improving the decryption capabilities of recovery services. The algorithms are optimized for hardware with increasing speeds and operating capabilities and achieve more accurate results.

While these algorithmic advances significantly improve the decryption capabilities of cryptocurrency recovery services, they also put us at the forefront of an ongoing battle against increasingly sophisticated threats. Among them, side-channel attacks emerge as a challenge, exploiting the physical execution of these advanced algorithms to compromise security.

Side channel attacks are a technique used to attack hardware devices such as Trezor or Keepkey by observing the physical parameters of a system, such as power consumption and electromagnetic radiation, and electronically faulting the device to bypass security measures such as PIN verification.

Most side channel attacks are divide and conquer. So, they get a sorted list of secret key fragments. Taking into account the key pieces listed and their probabilities, it is not possible today to protect against side channel attacks without adding additional security such as passphrases or additional words to 24-word seeds when using Trezor and Ledger devices.

Ethics and Safety

As we advance technologically, we must also address the ethical and safety implications of these innovations. While the goal is to recover lost digital assets, it is essential to be aware of possible scams.

Legitimate cryptocurrency recovery services stand out because they never ask for upfront fees and operate transparently and ethically. However, the prevalence of scams, characterized by promises of guaranteed recovery or requests for confidential information, poses a significant threat.

Users should be sure to avoid imitation websites that imitate the names of legitimate recovery services. These fraudulent sites may claim to help with fund recovery, but instead aim to misappropriate funds. Before making a request, it would be wise to investigate the presence and trustworthiness of the rescue service on social media platforms like X to verify its authenticity.

This focus on ethical practices and security measures is not only about protecting assets but also safeguarding the trust and privacy of people in the crypto space. By adhering to these principles, recovery services can offer a ray of hope to those who have lost access to their digital fortunes without compromising the integrity of the ecosystem.

In conclusion

The integration of AI models such as PASS-GPT, advances in computing hardware, innovative algorithms, and techniques such as side-channel attacks are significantly improving the capabilities of encryption recovery services. These technological advances offer new hope for recovering lost assets and show the potential to address even the most daunting challenges.

As the digital asset landscape continues to evolve, staying informed on the latest recovery technologies and best practices is the best defense against losses. Users should choose recovery services wisely and always prioritize safety and ethics.