80k Blockchain Firms to be Registered in China

The most of blockchain-related companies - over 20k - are registered in the province of Guangdong in the south-east of the country
27 January 2020   545

The LongHash project, which monitors the statistics of the Chinese blockchain industry, has nearly 80 thousand companies registered in the industry. But only 26 thousand of them are fully engaged.

The largest number of blockchain firms - 22636 - are registered in the coastal province of Guangdong in the south-east of the country. Following are Yunnan with 5301 companies and the Xinjiang Uygur Autonomous Region with 5105 enterprises.

It is noteworthy that a significant number of industry companies are registered in cryptocurrency mining centers, the provinces of Inner Mongolia and Sichuan, - 4,594 and 4,070, respectively.

Despite the fact that Chinese President Xi Jinping in October called on the country to become a leader in the development of blockchain technology, 2019 was significantly inferior to the previous year in terms of the number of new legal companies in the industry - 14014 against 19072.

The amount of investments in the Chinese blockchain sector last year amounted to $ 3.5 billion, which is also almost 50% less than in 2018.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   142

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.