Visa, Mastercard, PayPal & Stripe Hadn't Join Libra

Payment providers fear that participation in the project will negatively affect their relations with regulatory authorities along with other concerns
02 October 2019   553

Payment companies Visa, Mastercard, PayPal and Stripe are in no hurry to sign official documents on participation in the digital currency project Facebook, Bloomberg reports.

Firms believe that Facebook is exaggerating the level of support for the project from regulators, who express more and more doubts about Libra. Payment providers fear that participation in the project will negatively affect their relations with regulatory authorities, which are critically important for their business.

Companies are also concerned about Facebook data processing and privacy issues.

Facebook is keen to sign the Libra Association by October 14 to formally secure the participation of companies announced in June in the consortium. Despite the fact that the signing of the charter does not oblige potential participants to invest $ 10 million in the project, they hesitate regarding this step.

The Minister of Finance of France Bruno Le Mayr spoke out against the development of the Libra project in Europe, the German government went even further, deciding to ban all such stablecoins.

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   912

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.