Ethereum to Bitcoin atomic swap completed

Altcoin Exchange performed first atomic swap between Ethereum and Bitcoin
09 October 2017   8766

Altcoin Exchange announced the completion of the first atomic transaction (swap) between Bitcoin and Ethereum.

Altcoin Exchange exchanged 0.12345 ETH for 0.12345 BTC as part of an open source online process.

As reported by the Bitcoin. com, the CEO of the exchange, Andrew Gazdetski, announced his intention to create a repository on GitHub on Tuesday. He is convinced that the future of cryptotrading behind decentralized platforms, and atomic swaps are an integral component of this business model. In general, Gazdetski is confident that atomic swaps will replace traditional exchange transactions because they are safer and not inferior to them in speed.

Since June of 2011, 26 exchanges have been compromised, resulting in the loss of millions of dollars worth of coins. To prevent more of these types of hacks, decentralized exchanges are needed, and atomic swaps bring us one step closer to achieving this goal. What makes the technology behind Atomic Swaps so exciting is it allows for nearly instant direct trades between cryptocurrencies. We believe this to be a critical component for creating a truly decentralized exchange that executes transactions at the same speed in which centralized exchanges are able to but without the risk of hacking and theft.

Andrew Gazdetski
CEO, Altcoin Exchange

Also, developers highly appreciated the contribution of the Decred team and the founder of Litecoin, Charlie Lee, to the development of this technology.

Coinbase Bug to Provide Unlimited Ethereum

The bug was found by VI Company in December last year
21 March 2018   87

VI Company reported the discovery of a vulnerability in the system of smart contracts of the Coinbase exchange, which allowed users to credit an unlimited amount of ETH to their accounts. Experts informed the company about the vulnerability in December last year, and in January it was eliminated. For their work, VI Company employees received an award of $ 10,000. This is reported by The Next Web.

By using a smart contract to distribute ether over a set of wallets you can manipulate the account balance of your Coinbase account. If 1 of the internal transactions in the smart contract fails all transactions before that will be reversed. But on Coinbase these transactions will not be reversed, meaning someone could add as much ether to their balance as they want. When you look up the Coinbase wallet address after this transaction you will see that it is empty, but checking your Coinbase wallet will show your funds.

VI Company Report

In practice, this means that Coinbase users were able to enroll any amount of Ethereum on their accounts.

Researchers provided screenshots showing how Ethereum was credited to their account using the cancellation of the transaction.

Coinbase Bug
Coinbase Bug

Steps to reproduce, provided by the researchers :

  • Setup a smart contract with a few valid Coinbase wallets and 1 final faulty wallet (always throw exception when receiving funds smart contract for example)
  • Transfer appropriate funds to smart contract.
  • Execute smart contract adding the set amount of ether to the Coinbase wallets without ever actually leaving the smart contract wallet because the complete transaction fails at the last wallet.
  • Repeat until you have more than enough ethereum in your Coinbase wallet.
  • Cash out, transfer to off site wallet.

Whether any of the users could detect and take advantage of this vulnerability for their own enrichment is unknown.