Overwhelming majority of crypto apps are insecure

The security firm from San Francisco announced results of its investigation
29 November 2017   291

Conclusions of a research made by High-Tech Bridge company prove that 90% of existing mobile cryptowallets are insecure. They came to that decision after a detailed review of more than 2000 apps. After analyzing of the 30 first available apps the researchers found out that more than 90% of them have at least two insecure disadvantages.

During the process of exploring most popular apps with over 500,000 total installations High-Tech Bridge defined that they are a shade better and little bit more secure but also have minuses. 77% of them contain two “high-risk” disadvantages.

As the researchers noted, prevailing vulnerabilities are unprotected data storage and failures of encrypting systems. All these mistakes put information security in danger.

The founder of High-Tech Bridge Ilia Kolochenko conceives that such problems are the result of inadequate attention to safety and security of mobile apps. He added that it was only the tip of the iceberg.

A special company’s tool named Mobile X-Ray, which was used during the research, is at free access and any interested person can plug it in and check the security of crypto apps.

Bank of China Filed a Patent to Scale Blockchain Systems

Bank of China has filed a patent application for a process able to scale blockchain systems  
23 February 2018   108

According to a document released by China's State Intellectual Property Office (SIPO) on February 23, the application was invented by Zhao Shuxiang and first submitted on September 28 last year.

The application states that instead of letting a new block store transactions from its previous one, a data compressing system could be used to pack transactions from multiple blocks into what the patent calls a "data block."

For example, when the system receives a request to compress transactions from block 1 to 1,000, it causes a new data block to be formed and temporarily hosted on a different storage system. Then, the system will run the packed data through a hash function with a hash value. After that, the compression system will attach labels in order to identify blocks on the blockchain.

With the use of the described method, the patent claims a reduction in the amount of the data stored in new blocks as transactions mount in a blockchain while ensuring that data from all previous transactions will still be tamper-proof and traceable.

At the moment, the patent in the review process.