AVA Labs to Develop Avalanche Based Platform 

One of the founders says the upcoming platform can be valuable not only for DeFi, but also for Wall Street companies
25 March 2020   925

AVA Labs, the first project based on the Avalanche protocol, plans to create a platform to upgrade traditional and alternative financial markets.

The Avalanche Protocol White Paper was published by the anonymous Team Rocket development team in 2018. Avalanche uses random network sampling to achieve consensus.

AVA Labs, created by Cornell University professor and blockchain expert Emin Gun Sirer, announced last year that it would launch its own cryptocurrency based on the Avalanche protocol. Now the company intends to create a new infrastructure for financial markets.

According to one of the founders of AVA Labs, Kevin Sekniqi, the new platform may have particular value for financial infrastructure and applications, not only for decentralized finance (DeFi), but also for Wall Street firms.

Sekniqi plans to move the company’s office as close as possible to the financial quarter, as the territorial proximity to banks, brokers and firms can increase awareness of the product. According to him, this can be of great importance for institutions to become more serious about blockchain-based solutions.

AVA Labs is still in the process of building its own network. To this end, the company released a code base for the Avalanche protocol, specifying the technical elements for the ecosystem. AVA Labs opened access to the source code base of the project on March 11. The founders of the company hope to challenge the dominance of other leading consensus families.

Preparing to launch the network gives the development community the opportunity to put together working source code for Avalanche. The Avalanche random sampling method is significantly different from the mechanisms of the popular consensus families: Nakamoto (proof of Bitcoin) and the “classic” one, which is based on voting. Proponents of the new technology believe that Avalanche has incorporated the best of two protocols.

We’ve been hearing from people that they want much more scalable, much faster consensus protocols.

 

Kevin Sekniqi

AVA co-founder

AVA Labs leaders, for their part, believe that Avalanche has potential. Thanks to funding of $ 6 million received in February last year, a team of 30 people created a test network and developed a system that, according to Sekniqi, could become the “core” for a new generation of projects and applications.

Our end goal here is we want to be the platform on which all assets are issued, we really want to encompass DeFi and much more broadly alternative assets. We’re taking a very long-term approach to this.

 

Kevin Sekniqi

AVA co-founder

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.