Elliptic to Raise $23M During New Financing Round

The Series B financing round was headed by the the SBI Holdings and attended by AlbionVC, SignalFire and others 
04 September 2019   1190

Elliptic, a company specializing in tracking transactions on public blockchains, raised $ 23 million following the results of the Series B financing round, which was headed by the Japanese corporation SBI Holdings.

Other investors include AlbionVC, SignalFire, Octopus Ventures and Santander Innoventures.

So, Elliptic intends to gain a foothold in the Asian markets. The company has already opened an office in Singapore and plans to open another one in Japan this week. Note that representatives of SBI Holdings and AlbionVC will be members of the board of directors.

Elliptic founder and CEO James Smith explained the choice of jurisdictions with the progressive views of regulators and the existence of licensing procedures. The company intends to first gain a foothold in Japan, and then conquer the rest of Asia.

He emphasized that SBI Holdings will use Elliptic products that use AI and machine learning, both in its exchange business (VCTrade) and in custodial. In addition, SBI Holdings (a major holder of XRP) believes that the company is best suited for tracking transactions on the Ripple network.

It is also known that Elliptic is developing monitoring services for Libra from Facebook and digital currencies from central banks (CBDC).

We add that in the framework of the seed and funding rounds of Series A, the company has raised a total of $ 12 million over the past five years.

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   921

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.