Parliament of Malta to pass 3 Crypto Bills in 2d Reading

Today the Maltese Parliament is to be passing the three cryptocurrency and blockchain bills through their second reading
26 June 2018   903

This event was declared by Parliamentary Secretary for Digital Innovation Silvio Schembri in his opening speech at the Malta Institute of Management Cryptocurrency Considerations for Management Conference. These laws are to enable Malta to be a crypto space of choice for investors and business owners who are interested in a favourable jurisdiction to establish their cryptocurrency or blockchain firm.

The Virtual Financial Assets Act (VFA)

This VFA is set up to controll initial coin offerings (ICO). The bill affirms that projects engaging funding through ICO have to issue White Papers. The order also demands that the issuer’s financial history must be made public.

The Malta Digital Innovation Authority Act (MDIA)

The MDIA claims that an industry-specific governing structure will be instituted. This authority will be accountable to support the development and adoption of the guiding principles described in this Act and to promote consistent principles for the development of visions, skills, and other qualities towarding technology innovation. 

The Innovative Technology Arrangements and Services Act

This order is about the regulation of designated innovative technology arrangements. It will be the mechanism by which blockchain-built enterprises are estimated as such under the law, and as such will be the basis for the previous two bills to operate.

The implemention of these new bills provides an investor a transparent picture of the legal framework demanded to start a legitimate cryptocurrency business in Malta. 

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   965

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.