Blockchain & Cryptocurrency Glossary

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Network Security Monitoring (NSM)

1 min read
Pronunciation
[net-wurk si-kyoor-i-tee mon-i-ter-ing (en-es-em)]
Analogy
Network Security Monitoring is like having a sophisticated CCTV system with security guards constantly watching all entry and exit points of a building (the network). They look for suspicious activities (anomalous traffic), unauthorized access attempts (intrusions), and any signs of break-ins (breaches), allowing for quick response.
Definition
The practice of collecting, analyzing, and responding to network traffic data to detect and investigate security threats and intrusions. For blockchain infrastructure, NSM is vital for protecting nodes, APIs, and related services from attacks.
Key Points Intro
NSM involves actively observing network activity to identify and counteract malicious actions targeting blockchain systems.
Key Points

Collects and analyzes network traffic data (e.g., logs, packet captures).

Aims to detect intrusions, malware, denial-of-service attacks, and other threats.

Employs tools like Intrusion Detection Systems (IDS), Security Information and Event Management (SIEM) systems.

Crucial for maintaining the integrity and availability of blockchain nodes and services.

Example
A company running critical infrastructure for a public blockchain uses an IDS to monitor network traffic to its full nodes. If the IDS detects patterns indicative of a DDoS attack or attempts to exploit known RPC vulnerabilities, it alerts the security team, who can then take action to block the malicious traffic.
Technical Deep Dive
NSM involves deploying sensors (e.g., IDS/IPS) at strategic network points to capture traffic. This data is then analyzed, often by SIEM systems, which correlate events from multiple sources to identify security incidents. Analysis techniques include signature-based detection (matching known attack patterns) and anomaly-based detection (identifying deviations from normal behavior). For blockchain nodes, monitoring might focus on RPC interface traffic, P2P communication patterns, and connections to known malicious IPs. Regular log review and incident response planning are key components of effective NSM.
Security Warning
Effective NSM requires skilled personnel and well-configured tools. Attackers constantly evolve their techniques, so NSM strategies must be regularly updated. Encrypted traffic can limit visibility for some NSM tools, requiring alternative detection methods.
Caveat
NSM can generate a large volume of alerts (false positives), requiring careful tuning and prioritization. It's a reactive and detective control, meaning it often identifies attacks that are already in progress or have occurred, highlighting the need for preventative security measures as well.

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