JD. Com to Issue Asset-Backed Securities on Blockchain

JD Finance will launch the project in partnership with the brokerage firm Huatai Securities
13 June 2018   969

JD Finance, a subsidiary of the Chinese giant of electronic commerce JD.com, plans to issue asset-backed securities (ABS) using blockchain technology, CoinDesk reports.

According to the Securities Times report, the division of the Securities Commission of China, JD Finance will launch the project in partnership with the brokerage firm Huatai Securities, which will guarantee the release of financial instruments. The project will also involve Xingye Bank, which will be entrusted with the functions of a trust company.

According to representatives of JD, blockchain technology can significantly increase the transparency of operations. The experiment will determine whether this technology is able to meet the requirements of various parties involved in securities transactions, including issuers, underwriters and buyers.

According to local media, in August 2017 the company conducted a preliminary test of the technology of the distributed registry, issuing a loan for a car purchase.

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   964

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.