Nicehash devs reveal the details of attack

The livestream hosted on Nicehash Facebook page with further information about the attack performed on December 6th
08 December 2017   5322

Yesterday we've covered the hacking of Nicehash bitcoin wallet. At that time there were no official comments released about the scale or the exact method of attack.

Now, we have at least some information released by Nicehash team. Total amount of 4700 Bitcoin was stolen by as of yet unknown hacker, or a group of hackers.

The attack commenced on 1:18 AM CET according to available VPN logs. It was performed through a compromised computer at the company's office. The forensic analysis to determine the exact way the security was breached is ongoing. At 1:37 AM hacker logged in with the credentials of one of Nicehash engineers. During the next perpetrators studied the payout system and tried to modeled its work. At 3:24 AM they performed the transfer and have successfully stolen money from Nicehash account.

Local and international authorities and law enforcement organizations are on the case, and the local investigation is in full swing. From all the evidence it seems quite obvious, that the attack was extensively prepared and well-coordinated effort, because existing security systems should have filtered out any such attempt. Unfortunately, the company refused to comment on the internal investigation into possible insider leaks, citing ongoing investigation.

The most important question is, of course, what happened to the miners' accounts. Right now, Nicehash is in communication with the largest cryptocurrency exchanges to track and return the stolen money. The representative said during the livestream, that it will take time, but the company is looking for a way to pay the miners.

As of now, the site is still under maintenance, but the spokesperson said, that the team is working day and night to restore the functionality and to resume mining operations.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   98

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.