Basis Founder to Confirm Project Closure

He also confirmed that the financing attracted earlier in the amount of $133M will be refunded
14 December 2018   786

Nader Al-Naji, CEO of Intangible Labs, which founded a "stable coin" project Basis, confirmed earlier reports about the final closure of the project, noting that this difficult decision forced him to accept the existing rules of the SEC. This is reported by Forbes.

He also confirmed that the financing attracted earlier in the amount of $ 133 million will be returned to investors. Other recent names include Google Ventures, Andreessen Horowitz, Bain Capital, Digital Currency Group, MetaStable Capital, Pantera Capital, and PolyChain Capital.

We met with the SEC to clarify a lot of our thinking The SEC generally avoids saying that something will definitely be one way or the other. But from that meeting we got the impression that we would not be able to avoid securities classification.
 

Nader Al-Naji

Founder, Basis

He added that the development of the Basis technology was almost completed and for the most part the company was simply waiting for the “green light” from the regulator.

When Intangible Labs originally published the white paper of the project in June 2017, Basis was described as an “algorithmic central bank” that would give users a stable currency for making financial transactions around the world that would not have cryptocurrency like Bitcoin volatility.

The Basis model assumed the automatic purchase of tokens at lower prices and the release of new tokens when the price goes up. Unlike most other stablecocks, whose price stability is achieved by pegging to the US dollar, other fiat currencies or other assets, the basis issue should have been managed by the “base bonds” and the “base shares” auctions.

Lawyers of the company, however, explained that the SEC is likely to regard the company's tokens as securities. Therefore, Intangible Labs should limit their ownership to only the number of accredited investors in the United States during the first year after release. And although many of the requirements regulators would have been valid only for one year, the company in any case would have to create a centralized "white list" of users. Messages about the final closure of the project, noting that this difficult decision was forced to accept the existing rules of the Securities Commission and US stock exchanges (SEC). About this writes Forbes.

He also confirmed that the financing attracted earlier in the amount of $ 133 million will be returned to investors. Other recent names include Google Ventures, Andreessen Horowitz, Bain Capital, Digital Currency Group, MetaStable Capital, Pantera Capital, and PolyChain Capital.

I’ve very disappointed. Returning capital is something I never wanted to have to do, and had the regulatory climate loosened rather than tightened it would have been amazing for our technology, and also for the people who would use it.
 

Nader Al-Naji

Founder, Basis

Nader Al-Naji admitted that his company's project was in a losing position, and for the reason that, unlike Bitcoin or Ethereum, Basis tokens have no actual functionality. He also advised other entrepreneurs who are considering launching stable coins, refusing to do business in the United States, not accepting money from American investors, and also to ensure that tokens have certain consumer functionality.

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.