Real-World Attack Scenarios and Stateless Client Solutions

The following scenarios illustrate practical attack vectors and how they are mitigated through stateless verification:

Malicious Data Manipulation in a Financial dApp

• Attack: A DeFi lending application queries an RPC provider for account balances. A malicious RPC server returns an inflated balance, allowing unauthorized loans.

• Mitigation: A stateless client verifies the balance against the actual blockchain state before executing any transaction.

IoT Device Targeted by Censorship Attack

• Attack: A smart energy meter interacts with a blockchain-based pricing system. An RPC provider selectively withholds pricing updates to influence energy costs.

• Mitigation: A stateless client verifies all blockchain data against cryptographic proofs, ensuring access to unaltered pricing information.

AI Agent Exploited via Replayed Data

• Attack: An AI-driven asset manager executes trades based on the blockchain state. An attacker intercepts and replays old transaction data to manipulate trade execution.

• Mitigation: Stateless verification ensures the AI agent only processes transactions confirmed within the latest valid block.

Data Privacy Breach in a Web3 Application

• Attack: A blockchain-based identity verification service queries an RPC provider, which logs user addresses and transaction history, exposing sensitive data.

• Mitigation: Stateless clients fetch and verify blockchain data without exposing queries to a centralized entity, maintaining privacy.

Wallet App with Falsified Balance Data

• Attack: A crypto wallet queries an RPC endpoint to check for incoming payments. A malicious RPC server reports a payment received that never occurred, leading the user to assume incorrectly that they have funds.

• Mitigation: A stateless client verifies the transaction inclusion within a valid block before displaying the balance.

Unauthorized Access to IoT-Based Digital Locks

• Attack: A smart lock system grants access based on blockchain-based permission data. A compromised RPC provider falsely reports that an unauthorized user holds access rights.

• Mitigation: A stateless client verifies on-chain permission states before granting access, preventing unauthorized entry.

AI Agent Executing Unauthorized Actions

• Attack: An AI-driven automation system has permission to control an IoT device. A manipulated RPC provider falsely indicates that the AI still has authorization, allowing it to execute commands even after revoking access.

• Mitigation: Stateless verification ensures that permission checks are validated against the latest blockchain state, preventing unauthorized actions.

Denial-of-Service Attack on an RPC Endpoint

• Attack: A widespread DoS attack targets a primary RPC provider, preventing applications from accessing blockchain data.

• Mitigation: Stateless clients can use multiple providers or direct blockchain state verification, avoiding single points of failure.

Identity Theft in Web3 Identity Services

• Attack: A blockchain-based identity system verifies credentials through an RPC endpoint. A malicious RPC provider falsifies identity data to allow unauthorized access.

• Mitigation: Stateless clients ensure that identity proofs are checked directly against the blockchain without relying on a centralized RPC.

Fraud in Web3 Gaming Platforms

• Attack: A blockchain-based game verifies asset ownership via an RPC. A compromised provider falsely reports that a player owns rare in-game assets, allowing fraudulent transactions.

• Mitigation: Stateless verification ensures that in-game assets are validated against the actual blockchain state before processing transactions.