India May Ban Crypto Soon

According to anonymous official source of the Economic Times, corresponding bill has been already developed
26 April 2019   690

The government of India has developed the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019" which is designed to completely ban operations with Bitcoin and other cryptocurrencies within the country. This is reported by the Economic Times, citing sources within the government.

The bill has been developed since 2018. Representatives of various departments, including the Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) and the Investor Education and Protection Fund Authority (IEPFA) participated in its preparation .

The publication quotes unnamed officials, according to which these departments have supported a direct ban on the purchase, sale and release of cryptocurrencies. After receiving the necessary comments, the draft law in its final reading will be proposed to the next government of India, which will begin work after the elections in May.

In addition, a cryptocurrency ban can be passed in accordance with the Money Laundering Prevention Act (PMLA). In particular, officials had previously noted that the purchase and release of cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, etc., are made by private individuals and companies because of false motivations for receiving huge profits.

Such “schemes”, in their words, are not only opaque and do not fall under any regulated legal framework, but also often turn out to be financial pyramids, in which gullible investors are involved in order to deceive.

Note that earlier it was reported that the government of India is ready to legitimize the use of Bitcoin and other cryptocurrencies, but only under the strict restrictions of the industry.

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   975

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.