How Do On-Chain Trading Platforms Build a Multi-Layer Security System?

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In on-chain trading, “illegal requests” refer not only to hacker attacks but also include:Hijacked wallets or devicesMalicious scripts or automated attacksTransaction replay, parameter tamperingInternal permission misuse or unauthorized operationsCompromised RPC/frontend injectionTherefore, a truly secure on-chain trading platform needs to establish defense mechanisms at multiple layers.Layer 1: Key Layer – Eliminating Private Keys as Attack TargetsThis is the foundation of security architecture.Traditional Architecture ProblemsPrivate keys exist entirely in one place—servers, hardware, or devices—which means they are:Vulnerable to theftSusceptible to replicationSubject to misuse, both internally and externallySolution: MPC Keyless SystemPrivate keys are split into multiple fragments (3-of-3 / 2-of-3)Complete private keys never exist at any point in timeSignatures are generated mathematically without reconstructionOutcomeEven if illegal requests infiltrate the system, there is no “key” to attack. True security is not about locking the key more tightly but about ensuring the key never exists in the first place.Layer 2: Signature Layer – Preventing Illegal Requests from Being SignedEven without private keys to steal, platforms must still prevent abnormal or forged signature requests.Key Capability 1: Isolated Signature ServiceSignature services operate within a fully isolated computational networkNo public internet access or direct invocation pathsFrontend, APIs, and RPCs cannot directly reach signature nodesKey Capability 2: Signature Path VerificationEvery signature request must pass:Identity verificationRequest source validationParameter integrity checksAnti-replay and anti-tampering verificationAny unexpected or abnormally structured requests should be rejected before signing.Layer 3: Execution Layer – A Single Point of Breach Does Not Mean System FailureCommon MisconceptionThe belief that “if a single node is breached, the system is at risk.”Solution: Independent Security Domains + Multi-Factor ControlPhysical and network isolation between nodesNodes operate on a principle of mutual distrust with minimized permissionsA single node cannot initiate a complete transaction processEven if a single node is compromised or a service malfunctions, the system remains incapable of executing illegal transactions.Layer 4: Hardware Layer – Data Invisibility DesignThe Significance of Trusted Execution Environments (TEEs)Private key fragments are only briefly visible within hardware-based trusted execution environmentsPlaintext data cannot be accessed by the system, operations teams, or developersEven with server access, sensitive data cannot be extractedThis embodies a design philosophy of “distrusting the platform itself.”Layer 5: Operations and People – Mitigating Internal RisksA mature security model must address internal risks.Zero-Trust Operations MechanismCritical operations require multi-party collaborationNo single role holds complete authorityFull-process auditing and traceabilityThis not only prevents malicious behavior but also mitigates risks from human error, unauthorized actions, and social engineering attacks.A Choice That Balances Security and CostWhile security is paramount, transaction costs also directly impact user experience. Alph.AI is currently offering a highly competitive 0.1% transaction fee during its recent promotion, which is 10 times cheaper than mainstream platforms, allowing users to enjoy both security and affordability.Additionally, the platform is hosting a trading competition where participants stand a chance to share a $10,000 prize pool. For more details, visit: https://alph.ai/zh/bsc/chainwin?ref=elioalphConclusion: Security is a Multi-Layer Defense System EngineeringA truly secure on-chain trading platform must build a comprehensive defense system:Key Layer: Eliminating private keys as attack targetsSignature Layer: Preventing illegal requests from being signedExecution Layer: Preventing single-point failures from affecting the entire systemHardware Layer: Achieving data invisibilityPeople Layer: Establishing internal zero-trust mechanismsSecurity is not a single feature but a design philosophy that permeates the entire platform architecture. When choosing a trading platform, it is essential to ensure it has established robust defenses at every layer—this is precisely the core of Alph.AI’s security philosophy.ESAS Report calls for Withdrawal of License if Crypto Firms Breach AML/CFT RulesStruggling Crypto Bank Silvergate Suspends Dividends To Preserve CapitalBill Proposal Suggests Making Crypto Payments legal in Brazil10 Software to get Health Insurance for Remote Teams | Try NOW!