PBoC to Collaborate With Huawei For Fintech Research

Expersts says it's the first publicly announced deal by the central bank with a big-name company
06 November 2019   276

Chinese technology giant Huawei has announced a strategic partnership with a division of the People’s Bank of China (NBK). The latter is studying digital currencies. This is reported by The Block.

The collaboration is focused on fintech research. Other details have not yet been disclosed.

In the summer, Huawei CEO Ren Zhengfei supported the NBK's intention to issue its own digital currency. He said that China is able to create an analogue of the Libra coin.

According to the head of the research unit of the Chinese central bank, Wang Xin, Libra is a threat to the traditional financial system. In July, he announced that it was a coin from Facebook that could push the NBK to accelerate the release of its own digital currency.

In August, Mu Changchun, deputy head of the payment unit within the NBK, noted that the prototype of the digital currency was already ready, and the research group worked out the blockchain architecture for it.

Recently, Vice Chairman of the China Center for International Economic Exchanges, Huang Qifan, said the NBK will be the first central bank to issue a viable digital currency in the world, while the Libra project will fail.

Huawei has long been interested in blockchain solutions. In 2016, the company joined the Hyperledger blockchain consortium, and in 2018 announced the launch of a blockchain platform for creating smart contracts.

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   903

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.