Istanbul Hardfork May Harm Aragon & Kyber Network

CTO of Aragon one believes says that upcoming Ethereum upgrade may interrupt the operations of 680 smart contracts, designed to manage dApps
01 October 2019   637

The upcoming Ethereum network update called Istanbul will lead to disruptions in many decentralized applications (dApps). This opinion in a conversation with CoinDesk was expressed by the technical director of Aragon One Jorge Izquierdo.

According to him, the work of about 680 smart contracts involved to manage dApps on the Ethereum blockchain in the Aragon infrastructure will be disrupted.

Up until now, DAOs could receive ETH from one another. This will no longer be possible after the Istanbul hard fork.

Jorge Izquierdo

CTO, Aragon One

Representatives of the Kyber Network Ethereum token exchange platform noted that in their case, a hard fork will affect only one smart contract.

Problems are associated with the implementation of the Ethereum Improvement Proposal (EIP) 1884, which is designed to protect the network from congestion and ensure its stable growth, however, increasing the cost of gas for three resource-intensive operations. The costs for the so-called SLOAD operation will grow the most - from 200 to 800 gas units. This will be the main cause of problems with the execution of Aragon smart contracts.

In one Kyber transaction, we actually use a lot of SLOAD operations. So after [Istanbul] is in effect, the price of most of our transactions will go up by 30 percent.

Loi Luu

Co-founder, Kyber Network

Back in 2016, the cost of SLOAD operations increased significantly - from 50 to 200 units of gas. Then Ethereum users were much smaller and the market price of the ETH coin was much lower. In the current environment, confident in Kyber Network, the next wave of SLOAD cost growth can have a significant impact on users and developers.

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   986

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.