Facebook May Acquire Blockchain Startup

IT giant could acquire Chainspace, which is working of smart contacts systems for payments
05 February 2019   899

Facebook made its first acquisition in the blockchain field, this is reported by Cheddar. Without any announcements, the team of a small startup Chainspace, founded by researchers from University College London, came under its control. According to the description, Chainspace is creating a decentralized system of smart contracts for making payments and other operations in the blockchain. According to whitepaper, team is going to create "distributed ledger platform for high-integrity and transparent processing of transactions within a decentralized system.”

As reported, the acquisition of the Chainspace team is by far the most vivid evidence of Facebook’s intention to become a major player in the field of emerging technology

Sources said that four of the five authors of white paper Chainspace will become members of the blockchain group on Facebook. Two of them have already indicated the London social network office as their current job.

Recently on the site Chainspace appeared information that the project is going to do something new. According to sources, the project will be eliminated, since most of its employees now work on Facebook. How the social network will pay off with a startup is unknown. Sources say that before this Chainspace was in the process of collecting primary funding and was guided by an amount not exceeding $ 4 million.

A spokesman for Facebook confirmed the hiring of members of the Chainspace team, but declined to elaborate. He also noted that the company does not plan to acquire the startup technology, and cited a earlier official statement.

Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.
 

Facebook Spokesman

Currently, the blockchain division of Facebook, presumably, has more than 40 employees. At the end of last year, it became known that the company could develop a steeblecoin for making transfers in the WhatsApp messenger.

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   912

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.