Bank of America to Win DLT Patent

Patent is about a mechanism that will allow large companies, including exchanges and custodial services, to store their clients' cryptocurrency assets
14 November 2018   808

Bank of America, a financial conglomerate, has developed a mechanism that will allow large companies, including exchanges and custodial services, to store their clients' cryptocurrency assets. According to CoinDesk, the bank received the corresponding patent on Tuesday, November 13.

The document says that a financial institution will need to have a single corporate account suitable for storing cryptocurrencies. For operations, the client will be credited with an equivalent amount of funds, while the cryptocurrency itself will remain in the vault.

At the same time, companies will need a processor and enough memory to store private keys for a cryptocurrency wallet. Transactions are possible with the appropriate authorization.

Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to aggregate cryptocurrency deposited by customers in an enterprise account.

BoA Patent

According to the developers, the patented system imposes more moderate requirements for network and memory bandwidth, and also consumes less computing and energy resources.

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   1018

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.