Parity's vulnerability can lead to Ethereum hardfork

Another "issue" of popular Ethereum wallet can lead to unplanned hardfork
08 November 2017   2040

On Monday, November 6, a new critical vulnerability was discovered in the Parity Ethereum wallet, as a result of which users' funds on multi-signature wallet were frozen. To solve the problem, new Ethereum's hardfork can be implemented. This is reported by the CoinDesk.

Scope of the problem

As it became known, a critical vulnerability was discovered in the version of the smart contract that is responsible for the user wallets with the multi-signature created after July 20. It is assumed that one of the developers "accidentally" gave the smart contract to self-destruct, thereby freezing $ 154 million in ETH-equivalent.

The researchers managed to obtain exact figures during the analysis of problematic smart contracts. At the moment, frozen funds are three times higher than the amount stolen as a result of The DAO hack.

Nevertheless, the developers of Ethereum hastened to state that the problem is not directly related to the network, but only codes of smart contracts written on top of the blockchain.

Smart contracts Ethereum can not be changed after they are activated; the same is true for the bugs contained in these contracts.

Although some industry representatives said that the practice of writing the right smart contracts is only being worked out, other members of the cryptocoins community attacked Parity Technologies with accusations and funny pictures.

Reaction

Vulcanize developer Rick Dudley is sure that the developers responsible for the security sphere should be punished.

Hope Liu, CEO Eximchain already questioned the following updates from Parity Technologies, as the new vulnerability arose only a few months after the previous one. In the same company, they claim that smart contracts were audited before the official release, and accuse social media of speculation.

Ciaian Murray also believes that users can sue developers of smart contracts in connection with the loss of funds, thereby creating a legal precedent.

Charlie Lee, creator of Litecoin spoke his word too.

The founder of Ethereum Vitalik Buterin said that he "deliberately" refrains from any comments, but expressed support to all developers of contracts for electronic purses and their auditors.

How to solve this "issue"?

However, the representative of the security department of the Ethereum Foundation, Martin Holst Schwende, stated that it is impossible to recreate the code of the destroyed smart contract without carrying out the network's hardfork. In his opinion, any decision to defuse users' funds without exception requires a hardfork.

Service Localethereum conducted a Twitter-survey about the advisability of hardfork to rescue frozen in multi-signature wallets. 59% of respondents were against such an outcome.

Despite the general pessimistic attitude, some developers hope that the "white hackers" will find a way to unblock funds without activating hardfork.

It also worth noting that it is not the first "issue" of Parity wallet. In July, hackers were able to stole $30M from Parity

AION to Unveil Future Plans

Foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year
06 December 2018   157

The Aion Foundation, which is responsible for the development of the protocol of the same name and collected $ 23 million in Bitcoin and Ethereum on ICO in October last year, published a report in which it shared information about its financial operations. The report was prepared with the support of Deloitte, however, it cannot formally be considered an audit.

According to the Aion Foundation CEO Matthew Spoke, the foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year. Having spent $ 10 million on launching its blockchain platform and opening offices in Canada, China and Barbados, the fund had assets of $ 14 million as of October 31 of this year, $ 5.8 million of which was placed in Fiat.

We’ve liquidated a decent amount of our bitcoin and eth that we raised as proceeds to make sure that we are stable in this type of period. As we continue to spend in our operations we’ll end up liquidating more bitcoin and eth over the course of the next few months.
 

Matt Spoke

CEO, Aion Foundation

The Aion protocol has already attracted active users, including the video game start-up ClanPlay, but Spoke claims that his company will continue to rely on hard currency.

The foundation has roughly 18 months of runway, Spock estimates, while developing his system to a level at which it can compete with centralized counterparts, such as Amazon Web Services, will take about five years. Aion expects to launch its first Java-based virtual  machine, thanks to which developers can use decentralized tools, by the second quarter of next year.

Spoke suggests that at this time his company will have to attract additional funding from cryptocurrency funds and accredited investors in exchange for their own tokens. His goal is to prevent the reduction of the team, which currently includes 61 people, and the operation of the Ethereum model of ConsenSys, a company sponsoring projects in its own ecosystem.

In the future, Aion intends to publish such reports on a quarterly basis and transfer data to the Messari network in order to increase the confidence of its tokens holders.