Immersing yourself into the universe of Web3 is no small feat. Keeping up with all the new Layer 1 blockchains, like Sui and Aptos, is becoming a full-time job in and of itself. That’s why GreedyChain.com is here to arm you with intelligence on the landmines that could blow your implementation off course. The greatest risk today is the unintended consequence of sending your crypto to the wrong address. Simple enough, right? Well, the similarity of Sui and Aptos addresses can result in some very expensive errors. DeFi opinion columnist Anjali Mehra candidly explains the dangers and how to steer clear from them.

Understanding the Risks: Why Sui and Aptos Addresses Can Be Confusing

They’re both exciting new blockchains and ecosystems, named Sui and Aptos. In doing so, they hope to address some of the problems encountered by more established networks such as Ethereum. Their underlying technologies are different in important ways, creating confusion for users.

  • Incompatible Address Derivation: One critical difference lies in how addresses are created. Sui and Aptos use different address derivation mechanisms. This means a private key that controls a Sui address won't work on Aptos, and vice versa.
  • Distinct Cryptographic Architectures: The two blockchains also have distinct cryptographic architectures. This leads to differences in their address formats, even though they might look similar at first glance.
  • Similar but Different: Both Sui and Aptos addresses start with "0x" and are 66 characters long. This superficial similarity is where the danger lies. It’s easy to copy and paste an address without realizing it's for the wrong network.
  • Different Signing Schemes: Sui supports a wider range of signing schemes, including pure Ed25519, ECDSA Secp256k1, ECDSA Secp256r1, and multisig. Aptos uses a different set of signing schemes, making the addresses non-interchangeable.

Due to these differences, it is not possible to just convert a Sui address to an Aptos address or the other way around. They are radically different and made to perform only within their corresponding blockchains. If you send crypto to a wrong address, you will almost certainly lose that money permanently.

How to Avoid Costly Mistakes: A Step-by-Step Guide

Here's a step-by-step guide to ensure you're sending your crypto to the correct address:

  1. Double-Check the Address: This might seem obvious, but it's the most crucial step. Carefully review the address to ensure it is correct and matches the intended recipient's address. Don't just glance at it – check every character.
  2. Use a Trusted Source: Always verify the address through a trusted source, such as the recipient's wallet or exchange account. Avoid relying on addresses sent through email or social media, as these could be compromised.
  3. Use a Crypto Tracking Tool: Consider using a crypto tracking tool like CoinTracker. These tools can help auto-track your wallets and often provide verified addresses, reducing the risk of error.
  4. Scan a QR Code: Instead of manually typing in the address, scan a QR code provided by the recipient. This eliminates the possibility of typos and ensures accuracy.
  5. Verify the Address Format: Double-check that the address is in the correct format for the specific cryptocurrency you're sending. If you're sending Sui, make sure it's a valid Sui address, and the same goes for Aptos.

Understanding Address Poisoning Attacks

Beyond these basic errors, watch for more advanced attacks such as address poisoning attacks. These types of poisoning attacks attempt to trick you into sending money to the wrong address. Usually, they rely on visual similarities or just plain gaps in your system to win.

  • Phishing: Scammers might use fake emails or websites to trick you into entering your address, then swap it with a malicious one.
  • Transaction Interception: In some cases, attackers can intercept transactions and replace the intended recipient's address with their own.
  • Address Reuse Exploitation: Attackers can exploit the practice of reusing addresses to trick users into sending funds to a compromised address.
  • Sybil Attacks: Attackers create multiple fake accounts to overwhelm the network and make it difficult to identify legitimate addresses.
  • Fake QR Codes: Scammers might replace legitimate QR codes with fake ones that direct users to malicious addresses.
  • Address Spoofing: Attackers can use techniques to make a malicious address appear similar to a legitimate one.
  • Smart Contract Vulnerabilities: Flaws in smart contracts can be exploited to redirect funds to unintended recipients.

Before address poisoning attacks, unfortunate victims have lost hundreds of millions in the crypto space due to address poisoning attacks. According to known address poisoning schemes, scammers have taken over $83 million from victims. Of these, victims experienced an eye-watering $68 million Wrapped Bitcoin (WBTC) and $2.6 million Tether (USDT) loss across two separate scams. Please note, posting your crypto address will expose your crypto holdings and transaction history to the public. That can leave you vulnerable to those who seek to defraud you. They sometimes go after users with high crypto balances – for example, in late 2022 attackers launched large-scale campaigns that targeted over 82,000 wallets. These threats are increasingly becoming cross-chain in nature. They are very much impacting Ethereum and BNB chain, showcasing the increasingly cross-chain nature of these attacks.

Alternative Solutions: Enhancing Security

For those looking to take their security to the next level, consider these alternative solutions:

  • Multi-Signature (Multi-Sig) Wallets: Multi-sig wallets require multiple approvals to authorize a transaction, adding an extra layer of security. Unlike single-key wallets, which rely on one private key, multi-sig wallets distribute control. This shared control prevents any single person from having full control over the funds.
    • Key Loss Mitigation: If one private key is lost, the funds remain safe as long as the signature threshold is met.
    • Distributed Key Storage: Distribute access to multi-sig private keys across different units, making it harder for hackers to steal funds. A common signature setup is "2-of-3" or "3-of-5", requiring a specific number of signatures to authorize a transaction.
  • Address Whitelisting: Some wallets and exchanges offer address whitelisting, which allows you to specify a list of approved addresses. You can only send funds to addresses on this list, preventing accidental or malicious transfers to unauthorized addresses.

As with any emerging technology, staying informed and taking the right precautions is essential to enjoying the benefits of DeFi safely. So stay watchful, always verify information, and go a step further by adopting the latest security practices to keep your crypto safe.