Nasdaq and Euroclear to Represent Blockchain Platform

ABN AMRO Clearing, EuroCCP, Euroclear and Nasdaq jointly created blockchain or securities trading and derivative financial instruments
20 June 2018   1364

One of the main functions of the new solution is the mechanism for covering losses of investors based on the DLT due to the triggering of margin calls (forced completion of the transaction, when the account balance necessary to maintain the amount of collateral of all open positions is near zero). This is reported in the press release.

It is also reported that Nasdaq will develop a Proof-of-concept, and EuroCCP and ABN AMRO Clearing will develop a client part of the user interface and will take over the integration of services. Euroclear, in turn, will ensure the settlement of security transfers, as well as control over compliance with regulatory requirements.

Currently, processing transactions with collateral on derivatives is carried out centrally, which creates certain risks and difficulties. According to the creators of the platform, because of the growing number of participants in the derivatives market, this segment of the financial market needs new, more efficient solutions. The latter, in particular, should help to optimize the management of collateral, as well as the interaction of market participants located in different time zones.

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.