Chinese ABC Bank to Test Blockchain Loans Backed by Land

In the future, according to the representatives of the bank, they will start issuing other types of loans with the help of a blockchain
31 July 2018   1313

The Agricultural Bank of China (ABC), the world's fourth-largest bank by assets, issued the first loan with the help of a blockchain, Cointelegraph reports.

ABC, owned by the state and ranking itself among the "big foursome" of the largest banks in China, said that it issued a loan of $ 300,000 provided by a piece of agricultural land in Guizhou Province.

ABC will "generate blocks together with local residents, land and resource departments, and agriculture and livestock management departments with the help of the blockchain", and adds that the loan is aimed at "supporting the local tea industry".

In the blockchain-project, third parties (including the local branch of the People's Bank of China) are involved, serving as nodes that verify the correctness of credit data.

In the future, according to the representatives of the bank, they will start issuing other types of loans with the help of a blockchain. The distributed registry technology allows ABC to solve the problem with customers who take loans in different banks for the same piece of land.

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   1026

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.