New Swiss Organization to push Blockchain Use in Finance

A new blockchain association has been established in Switzerland in order to simplify  the use of blockchain technology in the financial market
12 June 2018   2113

The Capital Markets and Technology Association (CMTA) is based in Geneva. It was created by Switzerland’s biggest law company in conjunction with Swissquote Bank and banking software provider Temenos. As claimed in the official press release, it is to construct tools to help instituted and new businesses to integrate blockchain technology into their operations in correspondance to open national standard, which it will also set.

It is a non-profit and non-governmental organisation and will thus be able to operate  in an independent manner. It was stated at the Ecole polytechnique fédérale de Lausanne, that is a study institute and university located in Lausanne, and the dean of of the university’s School of Computer and Communication Sciences will be joining the committee.

Gland-headquartered Swissquote Bank is a banking group that promotes online financial and trading services. It has offices outside of Switzerland - in Dubai, Malta, London and Hong Kong. Geneva-based Temenos was instituted in 1993 and offers banking software to thousands of world financial institutions. It purchased British trading technology supplier Fidessa Group for $1.96 billion in February 2018. Temenos was also voted Best Islamic Banking and Finance Software Solution at the World Islamic Finance Awards in March 2018.

Lenz & Staehelin, placed in Zurich, was created by a merger of two smaller laws companies in 1991 and has around 200 lawyers on its roster. The CMTA will be headed by Jacques Iffland, partner at Lenz & Staehelin. 

The blockchain technology has the potential to reduce the complexity of the capital markets system and lower the barrier of entry for start-ups. The current lack of legal certainty is slowing - and potentially compromising - its development in this field. By defining a set of industry-supported, open standards, the CMTA aims to facilitate access to funding for businesses, ultimately contributing to value creation throughout the economy.
Jacques Iffland
Partner, Lenz & Staehelin

Crypto Valley Association placed in Switzerland is a blockchain-friendly area in the city of Zug that is home to such famous firms as Ethereum and which has adopted Bitcoin as a payment method since 2016. It is aimed to conduct test elections using blockchain technology for the first time later this month.

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.