Franklin Templeton to Use Stellar For New Fund

Fund won't invest in crypto but “the ownership of the Fund’s shares may be maintained and recorded solely on the Stellar network"
04 September 2019   1301

Franklin Templeton, a large investment company that manages $ 700 billion worth of assets, intends to launch a fund for short-term investments, whose shares will be tokenized on the Stellar blockchain. The corresponding provisional application is published on the website of the US Securities and Exchange Commission (SEC).

According to the document, the fund will invest at least 99.5% of the assets under its management in government securities, cash and repurchase agreements fully secured by government securities or cash.

The document also states “the ownership of the Fund’s shares may be maintained and recorded solely on the Stellar network." Franklin Templeton expects that the use of the blockchain will increase transparency and reduce settlement time, however, the initiative remains in test mode and can be liquidated at any time by the decision of the company.

As part of the creation of the fund, a mobile application will be developed that will allow investors to purchase and redeem tokenized shares directly from the company, as well as track the balance in the Stellar blockchain.

It is noted that after registration in the application, an individual wallet will be created for each investor.

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   919

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.