Parity's vulnerability can lead to Ethereum hardfork

Another "issue" of popular Ethereum wallet can lead to unplanned hardfork
08 November 2017   2532

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

DApp Transactions Volume to Reach All Time High

On the other hand, the number of new applications has noticeably decreased
07 May 2019   262

The volume of transactions carried out with the help of decentralized applications (DApp) in the Ethereum blockchain has reached a historical maximum, while the number of new applications has noticeably decreased, according to the latest report of the analytical company Diar.

In April, the volume of Ethereum processed through DApp, was greater than the previous record value recorded in December last year. According to analysts, the indicator grew for four months in a row, which is also the longest period of growth in history, and in April reached a value of 776,000 ETH. In dollar terms, the transaction volume was $ 132 million, which corresponds to an eight-month maximum.

Monthly ETH DApp Volumes Hits All-Time-High, Diar Report
Monthly ETH DApp Volumes Hits All-Time-High, Diar Report
New DApps Added Across Multiple Platforms, Diar Report
New DApps Added Across Multiple Platforms, Diar Report
 

At the same time, the number of new DApps running on the Ethereum network turned out to be minimal for the entire last year - 88 applications.

Last month wraps up a continuous declining trend in deployment since September 2018, bar a flurry of new DApps that went on-chain at the end of last year which marked the peak of development to date.
 

Diar Report

Earlier, Diar analysts reported that the volume of Ethereum transactions, expressed in the network's own cryptocurrency, peaked in December last year.