Parity: ETH hard fork inevitable to unlock frozen funds

Parity Wallet made an announcement proposing Ethereum Hard Fork in response to $160 funds frozen in the beginning of November
11 December 2017   1442

On November 6, users' funds on Parity wallets with multi-signature were reported to be blocked as a result of activation of a critical vulnerability in a smart contract. According to Parity statement, the amount of funds blocked on wallets was estimated at $164M.

On December 11, Parity published a blog post describing a solution for reactivating all the frozen funds. The ethereum software company confirmed that ETH hard fork is inevitable for this purpose.

No one should be under any illusion that unlocking these stuck funds would be anything other than a rescue operation - and would only be possible with a hard fork. 

Parity Technologies Team

Proposed solutions:

  • to allow private key holders affected by certain issues to withdraw their Ether
  • an “address specific” Ether and Tokens recovery, which would not change the semantic behaviour of the EVM but could still solve all of the cases previously raised
  • a change to the Protocol which would allow the revival of suicided contracts and fine-grained deployment of contracts for all users going forward 

Most recently, the incident with the Parity multi-signature wallet, where the contract which held the code governing the behaviour of the wallets, was deleted. This left anyone with Ether or tokens in Parity multi-sig wallets unable to withdraw them. All of these funds are provably non-recoverable without a change in the blockchain’s state, opcode upgrades or consensus rules modification.

Parity Technologies Team

Previously, we reported that Service Localethereum conducted a Twitter-survey about the advisability of hardfork to rescue frozen in multi-signature wallets and it turned out that 59% of respondents were against such an outcome.

At the moment of press, these are main market parameters of Ethereum:

  • Average price: $470.60
  • Marketcap: $45 305 020 721
  • 24h volume: $1 398 230 000

Parity to Fix Serious Vulnerability

An error that could shut down the computers with ETH nodes was reported by the vice president of blockchain development at Amberdata
30 August 2019   466

Parity Technologies released a new version of the client that fixed a bug that could shut down computers running Ethereum nodes.

The first to discover the vulnerability and report it to Parity was Scott Bigelow, vice president of blockchain development at Amberdata analytic startup. According to him, only a small part of Parity's customers are at risk.

There was a vulnerability that [if exploited] would cause an immediate crash of the Parity client for all its services. There is no possibility to steal funds or do other malicious things but you could shut down some portion of ethereum nodes.

Scott Bigelow

Vice president of blockchain development,  Amberdata

Parity Technologies encouraged users to upgrade their clients to the latest version as soon as possible, especially those where the publicly available RPC and transaction history tracking module are activated.

Remote Procedure Call (RPC) is a protocol that allows you to request program data on third-party servers. In the blockchain industry, it is used to obtain information on balances at addresses, block numbers, and other information.

To date, the Parity client uses about 21% of nodes in the Ethereum network (3257, according to EtherNodes).