ABN AMRO Bank to Abandon Crypto Custody

According to entity's senior press officer, bank considers crypto as risky asset
20 May 2019   840

Dutch bank ABN AMRO decided to abandon its plans to launch the custodial storage service of cryptocurrencies, The Next Web reported with reference to the statement of the organization’s representative.

In January, the network reported that 500 clients of ABN AMRO gained access to Wallie cryptocurrency wallets on the basis of banking infrastructure on an experimental basis. It was assumed that cryptocurrency assets in customers' wallets would be insured for up to € 6,000. However, the project hasn't reached the stage of real implementation.

We have approached all the people who have shown interest. We have concluded that cryptocurrencies because of their unregulated nature are at the moment too risky assets for our clients to invest in.

Jarco de Swart

Senior Press Officer, ABN AMRO

Last September, ABN AMRO, among other banks and companies, became a co-founder of a platform for trading commodities on the Ethereum protocol. 

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   975

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.