Secure Infrastructure To Store Bitcoin In The Cloud at Coinbase

Ideas you will meet

Distributed Systems

Consensus, time, failure and the fundamentals of scale-out.

Web Security

OWASP risks, XSS, CSRF, CORS and secure design.

What we already know about this

Our own lessons on these ideas. Read them here before you start, so it makes sense.

• Core Concepts: How Things Actually Work · 9 minStoring passwords and managing sessionsHashing, salting and slow password hashes, plus how sessions and tokens keep users signed in safely.Read hereClose

  Never store the password

  You do not need to know a user's password, only to check it. So store a one-way hash of it.

  Why plain hashes are not enough

  General-purpose hashes (MD5, SHA-256) are built to be fast. An attacker with your leaked hashes can try billions of guesses per second, and use precomputed tables (rainbow tables) for common passwords.

  What to do instead

  1. Add a unique random salt per user, stored next to the hash. Identical passwords then produce different hashes, and precomputed tables are useless.
  2. Use a password hashing function designed to be slow and memory-hungry: Argon2id, bcrypt or scrypt, with a work factor you raise as hardware improves.
  3. Optionally add a server-side secret ("pepper") kept outside the database.

  100%

  Figure SDA-CORE-06-1 · What to do instead · © forcsguy.com

  Sessions: staying signed in

  After login, the server must recognise the user on later requests.

  • Server-side session: the server stores session data and gives the browser an unguessable session ID in a cookie. Easy to revoke (delete the record).
  • Token-based (for example JWT): the server signs a token containing the user's identity and the client sends it each time. No lookup is needed, but revoking one before it expires is hard, so keep lifetimes short and use refresh tokens.

  Neither is automatically better. Server-side sessions are simpler and safer for typical web apps; tokens suit APIs and service-to-service calls.

  Cookie settings that matter

  • HttpOnly: scripts cannot read it, which limits damage from cross-site scripting.
  • Secure: only sent over HTTPS.
  • SameSite=Lax or Strict: reduces cross-site request forgery.
  • A sensible expiry, and a new session ID after login to prevent session fixation.

  Other protections

  • Rate limit login attempts and add lockout or delays.
  • Offer multi-factor authentication.
  • Compare secrets with a constant-time comparison.
  • Reset passwords with short-lived, single-use links sent to a verified email.
  • Never log passwords or tokens.

  Real-world reading

  Related reading

  • Pagelets Parallelize Server-side Processing at YelpYelp engineers · YelpCase Studies
  • Server Side Rendering at WixWixYouTube
  • MongoDB at Baidu: Multi-Tenant Cluster Storing 200+ Billion Documents across 160 ShardsMongodb engineers · MongodbCase Studies
  • Secure Infrastructure To Store Bitcoin In The Cloud at CoinbaseCoinbase engineers · CoinbaseCase Studies

  Show 6 moreShow fewer

  • Sherpa: Distributed NoSQL Key-Value Store at YahooYahoo engineers · YahooCase Studies
  • Akutan: Distributed Knowledge Graph Store at eBayeBay engineers · eBayCase Studies
  • The Site Reliability WorkbookGoogle SRE team · O'Reilly / GoogleBooks
  • Espresso: Distributed Document Store at LinkedInLinkedIn engineers · LinkedInCase Studies
  • Datadog Engineering BlogDatadog engineers · DatadogBlogs
  • Novoda Engineering BlogNovoda engineers · NovodaBlogs

  Open this lesson with its quiz and exercise