Coinbase Pro to Add Bitcoin Trading Pairs for Blue Chip DeFi Tokens
After a significant cooling-off period, the DeFi market appears to be moving towards another round of massive price movements. Coinbase Expands Order Book with DeFi/BTC Trading Pairs Coinbase announced the order book expansion via a blog post published on Dec. 1. According to the announcement, Coinbase Pro is set to offer new order books for … Continued
Coinbase Pro is set to offer more traders the ability to trade popular DeFi tokens against Bitcoin (BTC) as part of its latest order book expansion.
After a significant cooling-off period, the DeFi market appears to be moving towards another round of massive price movements.
Coinbase Expands Order Book with DeFi/BTC Trading Pairs
Coinbase announced the order book expansion via a blog post published on Dec. 1. According to the announcement, Coinbase Pro is set to offer new order books for popular DeFi “coins” including Yearn.Finance (YFI) and Uniswap (UNI).
Starting from Dec. 8, Coinbase Pro will allow users to trade some blue-chip DeFi coins against bitcoin. Apart from YFI and UNI, the other tokens involved are Chainlink (LINK), Algorand (ALGO), and Loopring (LRC). The plan will also introduce support for the Zcash (ZEC)-BTC trading pair.
According to Coinbase Pro, the roll-out of the expansive plan will proceed via three stages; post-only, limit only, and full trading. It added:
“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book(s) in one state for a longer period of time or suspend trading as per our trading rules.”
The announcement says Coinbase Pro will provide regular updates as to the status of each order book. These tokens are already part of the platform’s trading catalog and tradable against the USD Coin (USDC). Coinbase Pro first listed YFI back in early September.
DeFi Tokens Post Gains
Coinbase Pro’s announcement comes amid a resurgence in DeFi token prices within the general bullishness of the crypto market.
Indeed, data from DeFi aggregator DeFi Pulse shows an almost 30% increase in total value locked (TVL) in the Ethereum DeFi space. As of press time, TVL is only $250 million shy of its all-time high (ATH) value.
As previously reported by BeInCrypto, some crypto traders tip DeFi/BTC pairs to post between 50% and 100% gains in the short term. YFI is up over 180% in the last 30-day trading period.
Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.
Digital money which takes the form of tokens or coins is said to be cryptocurrency. Which some have entered the physical world in different ways, most of the cryptocurrencies remain intangible.
There are more than 2,000 cryptocurrencies but Bitcoin has been a trendsetter, leading in a wave of cryptocurrencies built on a decentralized peer-to-peer network. But the field of cryptocurrencies is always expanding, Bitcoin is not the only big cryptocurrency available, and the next great digital token may be released tomorrow, for all we know.
Last year was the most challenging for our global economy and traditional ways because of the pandemic. With the lockdown and fear of recession, more of the institutional investors took a step towards cryptocurrencies as a savior against the major economic threats. Hence this year, 2021, seems the best for cryptocurrency investment. But not only in Bitcoin. So here we bring to you the best Bitcoin alternatives to invest in 2021.
1. Ethereum (ETH)
Defi (decentralized finance) is one of the fastest-growing trends in the cryptocurrency world. It transforms insurance, loans, etc., and makes them independent from centralized financial institutions. Ethereum, the second-largest cryptocurrency after Bitcoin, is the best choice for getting into Defi.
Ethereum is the best cryptocurrency to invest in 2021 because it was one of the outstanding performers in 2020. It has a market capitalization of $68,127bn.
Ethereum is a decentralized software, open-source blockchain network without any third party interruption. It’s the best option for decentralized apps (dApps). In addition to its own cryptocurrency named Ether (ETH), the Ethereum software also supports other crypto currents that are also active in the decentralized finance sector like Maker (MKR) & Aave (AAVE).
2. Ripple (XRP)
Launched in 2012, now the third-largest cryptocurrency, Ripple is an alternative financial payments system that offers 100% safe, instant, certain, and low-cost international payments. Its blockchain has expanded to more than 40 countries. With its unique consensus ledger, which doesn’t require mining, and other special features, Ripple sets itself apart from other Bitcoin and altcoins. With growing support from different banks and commissions like HDFC Bank Limited, the Bank of America, the European Commission, etc., Ripple seems to be a great choice for investors since its future looks bright.
3. Litecoin (LTC)
Launched in 2011, Litecoin is pretty affordable among the options. It’s based on an open-source global payment network that is not controlled by any central authority and uses “script” as a proof of work, which can be decoded with the help of CPUs of consumer-grade.
Litecoin is pretty similar to Bitcoin but it offers a faster transaction confirmation time because it has a faster block generation rate. Some specialists also believe that its price will increase in the coming years. Hence this time investing in Litecoin can be very fruitful.
4. TRON (TRX)
Tron is a peer to peer, blockchain network whose founders were targeting to revolutionize the entertainment industry and democratize content creation and they got the perfect opportunity in 2020. Tron works as a content sharing platform on which users create or share their content to get rewarded with TRX, without a middleman. It also has a bunch of great partnerships like Samsung, oBike, etc. Tron Foundation has been in some controversies recently because of its founder Justin Sun but it’s a great cryptocurrency to invest in right now because it’s growing continuously.
5. Binance Coin (BNB)
Binance Coin, the official token of the Binance cryptocurrency exchange platform, is a decentralized platform where users can buy and sell Binance coins but can also use BNB to convert other cryptocurrencies from one to another. It was originally hosted on Ethereum until Binance decentralized exchange (DEX) went online in 2017 with a different mission.
Founded in 2017, Binance DEX has become one of the biggest cryptocurrency exchange platforms which has helped with the popularity of digital assets. It also lets users pay for some goods and services and offers a discount to users who pay transaction fees on the exchange with BNB. It’s a good time to invest in BNB right now because it’s gaining popularity and for all, we know it could be the most famous one soon.
It’s only a matter of time before cryptocurrencies and crypto payments are adopted as a whole. After all, 2021 is going to be one of the greatest years for the entirety of the crypto market.
Invest in these cryptocurrencies other than Bitcoin and take advantage of this situation before it’s too late.
Source: “Jeremy Collins is a Chicago University graduate who has been working in advertising for the last ten years. He is an expert designing and marketing specialist in most social media platforms including Facebook and has been working with the forum ever since it starts years ago.”
Mitsubishi and Tokyo Tech Tap Blockchain for P2P Energy Trading Network
Japanese conglomerate Mitsubishi Electric is teaming up with Tokyo Tech to develop a blockchain-based peer-to-peer (P2P) energy trading system. From energy neighborhood concepts to rural electrification projects, blockchain technology continues to find significant adoption in efforts geared towards improving access to electricity across the world. Blockchain-based Digital Energy Platform Both organizations announced the news via
Japanese conglomerate Mitsubishi Electric is teaming up with Tokyo Tech to develop a blockchain-based peer-to-peer (P2P) energy trading system. From energy neighborhood concepts to rural electrification projects, blockchain technology continues to find significant adoption in efforts geared towards improving access to electricity across the world.
Blockchain-based Digital Energy Platform
Both organizations announced the news via a joint press statement issued on Sunday (Jan. 17, 2021). According to the press release, the two establishments will collaborate on a pioneer blockchain P2P energy trading system to facilitate the efficient utilization of surplus electricity supply from renewable energy sources.
Detailing their respective roles and responsibilities in the joint enterprise, Mitsubishi will be in charge of designing the P2P energy trading infrastructure while Tokyo Tech will spearhead the blockchain research and development work functions as well as the development of a robust clearing algorithm.
According to the joint press release, Mitsubishi and Tokyo Tech’s network will differ from the usual blockchain-based energy trading systems. Part of this uniqueness lies in the decision to create a platform that does not require high-volume computations and is not hardware-intensive.
With micro-computing servers and robust order matching with minimal computation requirements, the new method will utilize a four-step process to achieve its aims. An excerpt from the announcement detailing the process reads:
“In the first step, information on buy and sell orders with a common trading goal (market surplus, profit, etc.) are shared by computing servers during a predetermined timeframe. Second, each server searches for buy and sell orders matched to the common goal in the first step. Third, each server shares its search results. In the fourth and final step, each server receives the search results and generates a new block by selecting trades that best meet the shared goal, which it adds to each blockchain.”
According to the press statement, the project will commence in April with plans for the early commercialization of the system.
Mitsubishi and Tokyo Tech’s project joins the rapidly expanding cast of P2P energy trading networks is what is proving to be a popular blockchain technology adoption niche. Back in Sept. 2020, the IOTA Foundation and CityxChange cost-efficient energy trading platform was announced as being business-ready.
As previously reported by BTCManager, a 2020 research study showed that Power Ledger’s P2P energy trading solution constituted a real use case for blockchain technology.
Four unidentified men stole more than 3.5 million yuan ($500,000) from a cryptocurrency trader in Kwun Tong, Hong Kong on 18 January.
According to local news site Apple Daily, the robbers, who are apparently 20 to 30 years old, threatened an unnamed woman with knives and sticks. At the time, the victim completed trading crypto with another person who was posing as a buyer, in the upper floor of Wah Kai Centre.
The criminals also stole the woman’s iPhone and fled to a pickup van. She immediately used her second phone to contact her husband, who then called the police. Police said that the office where the trade took place was recently rented out and only had some furniture.
According to local news, the woman sold crypto to the buyer in three transactions. Local police said in a report that the victim was paid 3.5 million yuan in cash in 1000 yuan notes after using her iPhone to transfer 450,000 yuan in USDT Tether tokens to the “buyer.”
The woman’s uncle, who drove her to the building was apparently waiting for her downstairs. He claimed that before police arrived, he saw a group of men run out and drive off in a van.
Detectives from the Kwun Tong district are investigating the incident and are in search of the perpetrators. At press time, no arrests have been made yet.
This would be the second crypto related robbery to take place this month in Hong Kong alone. On 4 January robbers stole $3 million yuan or $461,000 in Bitcoin from a trader in Chai Wan. The 37-year-old male victim met two buyers in a car before a group of six men rushed to the scene and stole the money. The robbers later kicked the trader out of the car on Tai Tam Road and drove off.
What happens when your Lightning Network routing node is fed with garbage transactions that never resolve? In short, it causes a lot of grief for routing nodes. What was once a smooth, global payment system can be locked up with trivial effort from a savvy script writer.
Working in a small team of routing nodes, we successfully ran a test of the attack with real funds and demonstrated the “griefing” attack described by Joost Jager. The attack is called a grief attack since it is not a theft of funds, but it causes a victim’s Lightning funds to be frozen: a major upset. What we found is that griefing is a serious threat to large “wumbo” channels expecting to earn a yield on their bitcoin, only to have their funds frozen for a period of time.
This is mostly a grief attack: no loss of funds, but the victim may be forced to pay for an expensive channel force close. This is a known vulnerability on mainnet Lightning and it needs to be understood and prioritized, especially at this early market stage of Bitcoin’s Lightning Network.
Thanks to Clark Burkhardt and Phillip Sheppard for their willingness to participate in this test and to Jager for his tireless work to bring attention and priority to this vulnerability. Jager played the role of the attacker for our demonstration, while Burkhardt and Sheppard joined me as connected victim routing nodes.
How The Attack Works
The attacker saturates one (or several) channel(s) with Hashed Time Locked Contracts (HTLCs) that don’t resolve as a finalized payment. These are a special breed of HTLCs known as HODL invoices. Only 483 of these unresolved HTLCs are required to overwhelm a channel per direction. Once those HTLCs are in the channel, any transactions using that same channel direction are impossible, including a transaction to cooperatively close that channel.
In theory, an attacker could contact the victim (perhaps via a keysend message or in an “onion blob”) and demand a ransom be paid to halt the attack. Once the ransom is paid, the attacker could remove the unresolved payments, ending the attack. The attack can be sustained indefinitely, halting all routing and payment activity in that channel. This freezes the funds in the Lightning channel.
Both directions of payments can be stalled in a channel by using 483 HTLCs in each direction, both inbound and outbound.
Why Would An Attacker Do Something Like This?
The first motive that comes to mind is to demand a ransom. This attack causes pain for the victim and paying a ransom may be attractive to a victim, even without assurance that the attack would stop. Contacting the victim might be risky for an attacker, but a ransom payment might not be the only reason someone would do this.
A secondary incentive for launching a griefing attack would be to disrupt routing competition. Jamming a competitor’s route could create more demand for a route owned by an attacker.
As a benchmark, consider that Lightning Labs’ Loop node has an ongoing demand for liquidity for which it will sometimes pay a 2,500 parts per million of the payment (ppm) (0.25 percent) fee rate. In my experience, they would normally exhaust 16 million sats’ worth of liquidity in about two weeks (5.2 percent annual percentage rate), but that is with competition present.
If an attacker could disable any competing route with lower fee rates, Loop may be willing to pay a higher fee rate (since the supply of liquidity is now reduced). Let’s say Loop would pay 3,000 ppm (0.3 percent), as well as use that liquidity more quickly since no other channels are functioning. Loop might use that liquidity in half the time, say one week. The attacker would more than double their usual yield to 15.6 percent APR in this example. The only cost to the attacker is the cost of running a script on an existing channel and the psychological cost of doing something immoral/damaging to the Lightning Network. With a single attacker channel, a malicious actor could jam about nine channels (see Jager’s tweets about this).
What Would The Victim Of This Attack Experience?
The victim of this attack wouldn’t really know that this attack was happening unless they had some special alerts set for pending HTLCs. For Thunderhub users (a highly recommended tool), the home screen will show a chart of pending HTLCs as well as a warning stating that channels can only hold 483 pending HTLCs.
In practice, my node quickly became unreliable and experienced several app crashes, including Thunderhub, which was the only app to notify me of the problem. Then, thanks to my “Balance of Satoshis” Telegram bot, I got a channel closing notification. The channel under attack force-closed itself! That was not supposed to be part of the experiment. (For more technical information on the involuntary force close, see below for additional force-close data.)
What Can The Victim Do To Stop A Griefing Attack?
Once an attack starts, a victim essentially can’t do anything to stop it. The only alternatives available to halt an ongoing attack would be to force-close the channel being attacked, which means that the terrorists win.
To add insult to injury, force-closing the channel will push the unresolved payments to the on-chain transaction data, triggering secondary on-chain transactions for the initiator of the force close. At 50 sats/vbyte and 483 on-chain transactions, that’s easily a 1 million sat price tag to force close a single channel under attack (a $368 channel close fee at today’s prices). The multiple on-chain transactions only occur if the output is above the minimum payment “dust” limit. (See this example on testnet.)
How To Prevent A Griefing Attack
Jager has been working on a proof-of-concept program to help isolate and fight attackers. He’s calling his program “Circuitbreaker.” The Circuitbreaker works at a network level, which unfortunately means that everyone has to participate for it to be effective.
Beyond that, this issue needs prioritization and attention from dedicated engineers/developers to find better solutions. There have also been some good discussions on modifying the protocol in the Bitcoin Optech newsletter (issue #122 or #126).
This attack can be executed today. It is a miracle that it hasn’t already been used maliciously. It’s a reflection of the incentives for those using Lightning today so that it can become an open, universal payment network. Please share this post as you see fit to encourage and inspire more work to fix this problem before it causes real harm.
Additional Technical Information About The Involuntary Force-Close
Here are the logs from my node running LND 0.11 at the moment that the above mentioned involuntary force-close occured:
2020-11-26 21:24:47.374 [ERR] HSWC: ChannelLink(657759:561:0): failing link: ChannelPoint (c37bec006b18df172698a84739ca47128935e0a8666fecd1a843e49b01db207c:0): received error from peer: chan_id=7c20db019be443a8d1ec6f66a8e035891247ca3947a8982617df186b00ec7bc3, err=rejected commitment: commit_height=455, invalid_commit_sig=3044022076fd65191eb6305b723fa6012be378413b6326e2786c38db58b4c02e1f3999d202207605ca31de8b4c5b1d9cd20dc1581dfa2383e0b4e06c8ad4f718ab5c434d8cf5, commit_tx=02000000017c20db019be443a8d1ec6f66a8e035891247ca3947a8982617df186b00ec7bc300000000008a792e8002210d0000000000002200201031cf10a1efef261edd3d0a1a6a953b27bc25bd7150bb2b07afdc69805e02157213000000000000160014de650929042bef58b71783ae1a44834a902a8f2d542ca720, sig_hash=4e0fb804c74376020e4c44a60969b9206eb0aaa9a89b76017d60f23ad5cf63e5 with error: remote error
The logs show an “invalid_commit_sig” which is a known issue in LND. Supposedly, this can happen upon reconnecting and isn’t a direct result of the channel jamming. The volume of pending HTLCs unfortunately makes it more likely to happen. Jager helped explain the process as channel jamming –> endless payment loop (bug) –> node down –> reconnect –> invalid commit sig (bug) –> channel force-close.
The “endless” loop bug is a known bug that occurs when the HTLC limit is reached and an additional HTLC is sent. Instead of ending in a payment failure, LND will continue to attempt the payment in a loop. To help with this bug, see LND issue #4656.
This is a guest post by Jestopher. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.