MEW Creator to Answer Big ETH Questions

Kosala Hemachandra told about DApss, initial coin offerings, Ethereum community, trust to crypto and new level for Ethereum developments
26 December 2018   342

The coming year will test the reliability of the Ethereum ecosystem. In addition, in 2019, one of the most anticipated updates, Constantinople, will be activated on the Ethereum network. In the column for CoinDesk, the creator of the popular cryptocurrency wallet MyEtherWallet (MEW), Kosala Hemachandra, answered the questions of concern to users regarding the state of affairs in the Ethereum community.

Kosala Hemachandra said that many good decentralized applications (DApps) have already appeared on the Ethereum network that can improve the user experience.

In his opinion, the progressive DApps-developments include the products of Kyber Network and MakerDAO, as well as the domain name system Ethereum Name Service (ENS), a solution that allows replacing long addresses with “readable” names.

Although these applications work on the principle of decentralization, according to Hemachandra, it will take at least five years for these DApps to interest the average user.

I encourage dapp developers to focus on building ecosystems with user experience and newcomer adoption in mind. We cannot ignore that in recent years, the Ethereum community has expanded beyond the technically-proficient to include the crypto-curious too.

Kosala Hemachandra

Creator, MyEtherWallet

Kosala Hemachandra believes that the ICO boom was both the best and the worst event in the crypto industry. In 2017, start-ups attracted more than $ 5.5 billion through tokensale, and already in the first eight months of 2018, this figure exceeded $ 14 billion. This increased interest in the industry and spurred the creation of innovative solutions.

However, at the time of the rise in the price of Ethereum cryptocurrency, many ICO organizers and developers withdrew the collected funds and left the ecosystem. According to the creator of MEW, although then the community lost bright minds, these events helped clean the ecosystem from developers looking only for financial gain.

The results of the Satis Group study showed that in 2017, fraudulent ICO collected more than $ 1 billion. Kosala, however, notes that ICO's frustration led to the growth of the popularity of traditional and venture financing, which can provide an incentive for development to crypto companies.

This season will not just be a test for the robustness of Ethereum’s technology, but also how we evolve as a community. 

Kosala Hemachandra

Creator, MyEtherWallet

Ethereum developers have already come to unified solutions and compromise, according to Kosala. DevCon's annual conferences allow ecosystem participants to interact harmoniously.

Now more than ever, it is important that we hold onto good talent throughout the industry. In the midst of these volatile market conditions, we cannot afford another brain drain and it is crucial that intelligent and committed people are drawn to this field and incentivized by goals that are not purely financial.

Kosala Hemachandra

Creator, MyEtherWallet

According to him, in order to have less people disenchanted with cryptoindustry, it is necessary to raise the level of awareness of fraudulent projects.

To turn over a new leaf, we can start by making it easier for crypto beginners by providing more materials and resources tailored to them.

Kosala Hemachandra

Creator, MyEtherWallet

Drawing an analogy with Bitcoin, which took almost 10 years to attract massive attention, Hemachandra is sure that for the successful development of the Ethereum network, new solutions need to be developed carefully and slowly.

Constantinople to be Postponed

Ethereum's hardfork will be late due to critical vulnerability found
16 January 2019   196

A scheduled upgrade of the Ethereum network called Constantinople was postponed indefinitely after a critical vulnerability was discovered in one of the improvements, CoinDesk reports.

This is a vulnerability in EIP-1283, which, as identified by the audit company SmartSecurity smart contracts, gave hackers the opportunity to steal user funds.

During a video conference on Tuesday with the participation of Ethereum developers and other clients and projects working on the network, it was decided to temporarily postpone the activation of the hard forks.

In particular, Vitaly Buterin, developers Hudson Jameson, Nick Johnson and Evan van Ness, as well as release manager of Parity Afri Shoedon took part in the meeting. Discussing the revealed vulnerability, they agreed that it would be impossible to eliminate it before the appointed time for hardfork (around 04:00 UTC on January 17).

A vulnerability, called a reentrancy attack, allows an attacker to repeatedly enter the same function and infinitely withdraw funds.

Imagine that my contract has a function which makes a call to another contract… If I’m a hacker and I’m able to trigger function a while the previous function was still executing, I might be able to withdraw funds.

Joanes Espanol

CTO, blockchain analytics firm Amberdata

According to him, this is a lot like the vulnerabilities that were discovered in The DAO in the summer of 2016.

Representatives of ChainSecurity also noted that up to the Constantinople hard fork, data storage on the network cost 5,000 units of gas, which exceeds the 2,300 gas usually needed to call the “transfer” and “send” functions. After the upgrade, “dirty” storage operations will cost 200 units of gas, and an attacking contract can use 2,300 gas to successfully manipulate the variables of vulnerable contracts.

New date of hardfork not yet determined.