Connect with us

Blockchain

Vitalik Buterin Says Mysterious High-Fee ETH Transactions May Be An Exchange Being Blackmailed

Avatar

Published

on

Vitalik Buterin Says Mysterious High-Fee ETH Transactions May Be An Exchange Being Blackmailed
Advertisement1xbit    

A few days ago, the ethereum network witnessed two transactions sent from the same address and with an abnormally high transaction fee. The first transaction involved $133 worth of ethereum and cost $2.6 million to transfer the funds. A couple of hours later, the same user spent another $2.6 million to send ETH worth around $87,000.

These transactions quickly caught the eyes of most crypto enthusiasts, with some suggesting it was a mistake caused by a bug in the wallet software of the unknown ethereum user.

However, roughly 23 hours later, another anomalous transaction was noted by the crypto community. This one involved the user sending 3,200 ETH and paying a fee of $500K. It should be noted that the ETH address for this third transaction had no connection to the earlier address that sent the first two unusually expensive transactions. This aroused speculations of bad faith in play – such as a hacker.

Ethereum founder Vitalik Buterin took to Twitter a few hours ago to share his insight on what may have actually transpired. In his tweet, Buterin argued that the “million-dollar txfees *may* actually be blackmail” directed at a certain exchange.

To elaborate on his theory, Buterin postulated:

Advertisement

“Hackers captured partial access to exchange key; they can’t withdraw but can send no-effect txs with any gasprice. So they threaten to “burn” all funds via txfees unless compensated.”

This key, according to Buterin, could have been stored in a sort of a cloud server with a non-root account that is capable of withdrawing only to certain whitelisted addresses.

Buterin further explained that “similar situations could happen in ‘scorched earth’ games, including scorched-earth vaults aka ‘Moeser-Eyal-Sirer’ vaults”, and it could also be a situation “where hackers can slash but not steal staked funds”.

When quizzed whether these scenarios were only possible on ethereum, Buterin noted that they can happen on any other blockchain platform.

This theory has been corroborated by researchers at blockchain security firm Peckshield who concluded that the exorbitantly high fees are possible “gas price ransomware attacks launched by hackers targeting the exchange”.


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/vitalik-buterin-says-mysterious-high-fee-eth-transactions-may-be-an-exchange-being-blackmailed/

Blockchain

How Does the Future Look for Cryptocurrencies in the Financial Market?

Avatar

Published

on

The trading share of cryptocurrencies in the financial markets is getting bigger by the day, as professional and occasional investors redirect their funds from traditional assets to crypto coins. Billions of dollars, euros, pounds, and of other fiat currencies are used by traders, for the opening of new crypto trading positions, increasing crypto coin values, reputation, and market share. This is also one of the reasons, why new cryptocurrencies are regularly being launched. However, the supply of investment funds is not without limit, and on many occasions, it feels like a number of these new crypto coins are doomed for failure.

Today, cryptocurrency development stretches beyond its original creational limits, as even regulated institutions are investing in the creation of digital coins. These coins are generated to achieve collective wallet digitalization and consequently to gradually eliminate the need for cash. This, of course, is not something for which traders and investors care about, as their primary concern is how these assets will perform in the financial market. That being said, if a crypto asset is trusted and respected in the real world, then this will reflect on its performance in the world of finance. The problem is that for a cryptocurrency to earn the respect of the real economy, it will need to have enough time to mature.

 

Crypto Trading and Investment Challenges

Trading cryptocurrencies is not an easy task. There is a lot of research required, and there is a lot of work that needs to be done before opening a trading position. Experienced traders know that it is not something as fun and as easy as taking a spin on penny roulette, but those with less experience in crypto trading can end up facing heavy losses, just because they have not invested enough time to prepare for the worst-case scenario. Even though we have not seen any signs of a new cryptocurrency bubble burst for a long time, it does not mean that the threat is not there. This applies both to new cryptocurrencies as well as to those which the market categorizes as established.

Where Do We Go from There?

With a higher demand for digital monetary alternatives, it is only natural that countries, unions of nations, and Central Banks are looking towards finally regulating the crypto market. The regulation of such assets will set new standards for commerce and revolutionize the flow of money. It will, however, limit the profit potential of crypto coins, as it will no longer be possible for a cryptocurrency – whether it is new or old – to go from being worth peanuts to being worth as much as gold in a matter of hours.

👉Not being able to become rich overnight is bad news for those who dream of becoming wealthy through cryptocurrency trading, but it also comes with benefits. A regulated cryptocurrency market will discourage “dodgy trader” activity and reduce the risk of seeing toxicity forming in the crypto market. This will allow for the growth of crypto assets in a positively-charged environment, which will give them the time and stability they need to get to the same level of trust as that of traditional trading assets.

 

Source: Plato

 

Continue Reading

Blockchain

How Blockchain Can Help Your Business Grow

Avatar

Published

on

Ever since the introduction of Bitcoin in 2009, the world has changed the way it views fiat currencies and digital security. People were excited that they could finally transfer digital currency anywhere in the world without exaggerated banking fees or long hours.

The technology, however, proved so versatile that it has found its way into other uses as well. In 2020, there are so many businesses that use blockchain that we simply don’t have the time to enumerate them all in a single short article. But we will do our best to give you examples of ways the blockchain could potentially help you.

 

More Security

Hackers rarely sleep. That’s one statement that Sony forgot back in 2011. While it is unclear whether they now use the blockchain or not, many other companies have started implementing it with great results.

The encryption technology that the blockchain employs requires transactions and other processes to go through multiple nodes connected to the blockchain to get approval. This way, if a hacker attempts to do something malicious, the multiple nodes will eventually realize that fraud’s at stake and stop the transaction in its tracks.

More Payment Methods

People often think that the blockchain is meant solely for cryptocurrencies. That’s not true, at least not anymore. Banks all over the world have started implementing this tech to ease transaction times and lower processing fees.

Moreover, businesses that implement blockchain can use this technology to offer their customers multiple payment methods with seemingly endless currency options. One non-banking company that has proved the efficiency of this method is BetConstruct, offering more than 400 payment methods.

 

 

AI Integration

Through the blockchain, you can set up a reliable network of chatbots that can help out your customers.

With the help of the blockchain, these AI bots can easily communicate with one another and learn from each other based on what users respond, how they rate their satisfaction with the chat, and how customer support agents respond to users once the chatbot sends them their way.

 

Hire Better Employees

Small companies often don’t have the time or necessary resources to double-check the information in a CV. But with the help of the blockchain, you won’t need any of that.

Even today, there are still a lot of people seeking a job who ungracefully lie in their resumes. The blockchain can process all the data in a resume and send you the verified information to see if it’s legitimate.

Not only does this save you time, but it also means you’ll have hired the right person for your future projects. And we all know what having the right person can mean if you want your company to be successful.

 

Improve Your Marketing Campaigns

You’re probably aware of the usual marketing techniques like social media, video ads, billboards, SEO, SEM, and more. Look, you won’t need the blockchain to implement those tactics.

However, Blockchain can be used by marketers to keep track of client information and consumer behavior. With this data, skilled marketers can craft clever campaigns that bring greater ROI. You can also use the blockchain to track any changes made to your campaigns. If only David Ogilvy has had this tech at his disposal, who knows what he would’ve been able to craft.

 

👉🔥The Bottom Line

The blockchain has revolutionized businesses all around the globe the same way it has revolutionized the way people view money.

Implementing this technology for your business will net you tons of long-term benefits for an otherwise small investment considering all the things you’ll be getting.

Source: Plato

Continue Reading

Blockchain

Report: Q3 2020 Was The Best Quarter For DeFi

Avatar

Published

on

This week, Belgium’s Financial Services and Markets Authority made a startling revelation. Cryptocurrency fraud victims have lost at least €10 million between May 2019 and September 2020, the financial regulator said.

Belgians Have Lost €10 Million In Cryptocurrency Fraud

Belgian citizens have lost almost 10 million euros to fraudulent crypto investment schemes. Belgium’s apex financial authority, the Financial Services and Markets Authority, said on Monday. According to the watchdog, this data is from May 2019 to September 2020. Speaking about the modus operandi adopted by the scammers and crypto robbers, the FSMA said:

These platforms often use very aggressive methods to try to persuade you to invest ever larger sums. They will also try to persuade you to let them take control of your computer remotely so as to be able to make certain payments.

Adding to its statement, the regulator pointed out ‘fake advertisements that typically use images of celebrities.’ Potential victims get beguiled by platforms displaying these adverts circulating on social media. When interested folks click on them, cryptocurrency shysters call them to ‘to discuss an investment offer.’

Apart from bitcoin and other cryptocurrencies, online robbers offer investment schemes in foreign exchange products and contracts for differences (CFDs) that can be traded in markets with commodities and shares.

The FSMA had already apprised users about potential cryptocurrency frauds and scam-filled activities in 2018. Since then, it has added fake credit letters to its list of unscrupulous investment offerings. These the regulator said claim ‘to offer loans on favorable terms but intend to steal money.’ Also, investors need to stay away from fraudulent wealth management and alternative investment scams, FSMA mentioned.

You Might Also Like:

Is This Why The UK FCA Banned Crypto Derivatives For Retail Customers?

As per the latest update from the cryptocurrency scene in the UK, the country’s top financial watchdog, the Financial Conduct Authority (FCA), has banned the sale, marketing, and distribution of cryptocurrency derivatives and ETNs to retail customers effective January 6th, 2021.

The FCA enumerated several reasons to justify it’s latest banning move. Volatility in crypto prices, the so-called ‘lack of inherent value,’ and inadequate understanding of cryptocurrency systems are others. But the financial regulator also specified that ‘prevalence of market abuse and financial crime in the secondary market’ is why retail players should stay away from crypto derivatives.

Also, there is no legitimate need for retail customers to invest in these products, the FCA added. The most crucial question now is: Will these measures actually block the propagation of crypto fraud and scams? Will such a ban actually protect users?

In a world where fiat and traditional market scams are dominant and much more widespread than digital currency fraud, an outright ban on different crypto investment opportunities will only do so much. What is required is tightening law enforcement on scammers and the bad actors, which will eventually make crypto investment safe for users.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

Source: https://coingenius.news/report-q3-2020-was-the-best-quarter-for-defi-22/

Continue Reading
Esports3 hours ago

Haksal retires from professional Overwatch

Energy3 hours ago

CO.R.D.A.R Valsesia adopt innovative Israeli wastewater data solution to reduce water degradation in the Italian Alps

Energy3 hours ago

Commencement of Cash Tender Offer for Ascent Resources Utica Holdings, LLC’s and ARU Finance Corporation’s 9.00% Senior Notes due 2027

Energy3 hours ago

Entrada de Pedidos da Indústrias Romi atinge R$313,4 milhões, crescimento de 65,5% em relação ao 3T19

Energy4 hours ago

Berkeley Lab Building Efficiency Campaign Drives $95M in Annual Energy Savings

Esports5 hours ago

AZR open to European offers

Finland
Esports6 hours ago

FunPlus Phoenix in talks to sign GODSENT roster

Energy6 hours ago

Hycroft Appoints Stanton Rideout As Executive Vice President & Chief Financial Officer

Energy7 hours ago

GWS Tool Group Announces Acquisition of STF Precision (STF)

Energy7 hours ago

Global Print and Apply Labeling and Labeling Equipment Market Outlook to 2027

Energy7 hours ago

Algonquin Power & Utilities Corp. Announces Dates for Third Quarter 2020 Financial Results and Conference Call

Energy7 hours ago

Lida Resources Unaware of Any Material Change

Energy8 hours ago

$32.1 Billion Worldwide Liquid-Immersed Transformers Industry to 2027 – Impact of COVID-19 on the Market

Energy10 hours ago

American Electric Power Receives First NAPPC Pollinator Electric Power Award

Denmark
Esports10 hours ago

Official: MAD Lions complete lineup with refrezh and HooXi

Energy10 hours ago

Garrett Announces Acquisition

Russia
Esports10 hours ago

forZe take down NAVI in IEM New York CIS

Energy10 hours ago

NASA, Department of Energy Expand on More Than 50 Years of Collaboration

Energy10 hours ago

GivePower Foundation Receives $1 Million Donation from Silicon Valley Technology Veteran Chris Larsen

Energy11 hours ago

AEP Increases Quarterly Dividend To 74 Cents A Share

AR/VR11 hours ago

From Environmental to Social: XR Tackles Global Issues

AR/VR12 hours ago

New Japanese PlayStation VR Bundles to Include Camera Adaptor for PlayStation 5

Energy13 hours ago

McKim & Creed Acquires­ Water Loss Recovery and Control Firm

Energy13 hours ago

Global Cable Management Market (2020 to 2027) – by Type, and End-user

AR/VR13 hours ago

Qualcomm’s XR Enterprise Program Doubles Membership, Includes Holoride, OssoVR & Talespin

Energy13 hours ago

Worldwide Industry for Cables and Connectors to 2027 – Growing Number of Data Centers Presents Opportunities

Energy13 hours ago

Xinhua Silk Road: La transformación verde es vital para el desarrollo del carbón de coque y la cooperación energética de la B&R

Automotive13 hours ago

ALYI Highlights Next Steps

Energy13 hours ago

Field Squared Selected by TRC to Embolden Digital Transformation of Its Utility Service Operations

Crowdfunding13 hours ago

The Worst Way to Respond to Any Market Crash

Blockchain14 hours ago

Billionaire Mike Novogratz Builds Bitcoin Position on Prescience

Entrepreneur14 hours ago

It’s Time for You to Rise Up!

Entrepreneur14 hours ago

If You’re Not Using a CRM System for Your Small Business, You’re Wasting Time and Money

Patents14 hours ago

New electroactive bacterium for wastewater treatment

Blockchain14 hours ago

Latvian Financial Watchdog Issues Crypto Fraud Warnings

Cannabis14 hours ago

PURA Concludes Farmersville Meetings – Deal Imminent

EdTech14 hours ago

Blended Learning Best Practices (with Catlin Tucker) – SULS085

Entrepreneur14 hours ago

This CEO Doesn’t Look at Resumes When Hiring

Entrepreneur14 hours ago

Virtual Meeting Etiquette Guide for Hosts and Attendees

Entrepreneur14 hours ago

9 Ways to Add Revenue to Your Marketing Agency Before 2021

Trending