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Coinbase Reveals Its Procedure for Handling Contentious Forks

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Coinbase Reveals How the Exchange Manages Contentious Forks

On Feb. 20, the San Francisco-based cryptocurrency change Coinbase gave the general public an inside of take a look at how the corporate offers with contentious forks. Coinbase engineer Breck Stodghill in particular mentioned how the buying and selling platform handled the Bitcoin Cash (BCH) break up on November 15, 2018.

Also learn: ‘Bitcoin Killer’ Onecoin Is Ashes But Investigations Continue to This Day

Replay Attacks, Protection, and ‘Dust Mixing’

Over the previous few years, cryptocurrency lovers have got used to the speculation of forks and next blockchain splits ever because the Ethereum network bifurcated in 2016. Since then there were a couple of different notable splits that affected the crypto ecosystem. Coinbase has defined in a blog post written via developer Breck Stodghill that the corporate believes networks must be capable to fork because it’s an “important tool for innovation in the ecosystem.” The simplest factor is, some forks – in particular ones that don’t have replay coverage – can pose “unique security risks” for change shoppers.

Coinbase Reveals Its Procedure for Handling Contentious Forks
An instance of a blockchain break up.

The Bitcoin Cash community fork in November was once a type of cases because the improve was once contentious within the eyes of an “opposing subgroup.” In order to give protection to customers who held BCH on Coinbase previous to the fork, the corporate created its personal replay coverage option to mitigate replay assaults. When a cryptocurrency splits in part there are two chains with similar transaction histories, addresses, and balances. Essentially, with out replay coverage transactions can also be double spent via malicious actors and different forms of transaction mistakes can occur.

“To overcome this unique problem, we implemented our own replay protection by using a strategy called “dust mixing,” thereby making sure that each one buyer budget are remoted to a selected chain and now not susceptible to replay assaults,” explains the Coinbase developer.

Coinbase Reveals Its Procedure for Handling Contentious Forks
One instance of a replay assault is the potential for interception. At some level, an attacker looking at the chain state can sees any person’s transaction knowledge, copies it and re-uses it at the trade community. Since there is not any replay, the transmitter too can be afflicted by replay vulnerabilities simply by making mistakes on their very own via sending each currencies on the identical time with out splitting them.

When the fork happened, Coinbase applied the mud blending methodology as a way to be certain that the company’s sizzling pockets and shoppers’ budget have been stored protected. One approach to separate two similar chains is via the usage of transaction inputs that simplest exist on some of the ledgers. When the BCH chain diverged into two, new outputs have been created and shaped throughout the miners’ praise. These coinbase rewards are other and separate the reflected chains going ahead.

“Dust blending refers back to the apply via change operators of together with no less than one small chain-isolated enter to each and every newly generated post-fork transaction,” Stodghill’s publish main points. “At the time of the BCH/BSV fork, we obtained a BCH coinbase reward from a miner. We used the coinbase reward to generate a large set of chain-isolated dust outputs. For each newly generated post-fork BCH transaction, we make sure to include at least one input that is guaranteed to be isolated to the BCH chain (i.e. a descendant of a BCH coinbase reward).”

Coinbase persevered via including:

Any leftover alternate outputs of Coinbase generated BCH transactions are added again into the pool of chain remoted outputs in our sizzling pockets and can be utilized as an enter to next transactions to provide further mud outputs required to carrier BCH sends off our platform.

Coinbase Reveals Its Procedure for Handling Contentious Forks
How Coinbase used “dust mixing” for replay coverage all the way through the BCH/BCV chain break up on November 15, 2018.

Contentious Forks Can Lead to Big Exchange Losses

Hard forks are part of the best way blockchains improve however contentious forks can result in splits and next replay assaults if no coverage is added via cryptocurrency builders. Back when the Ethereum community fork shocked everybody in 2016, former Coinbase government Charlie Lee said that the Ethereum Foundation advised the exchange to not use replay coverage. Reports on the time detailed that buying and selling platforms like Coinbase, Yunbi (40,000 ETC) and Btc-e all misplaced 1000’s of ETC and ETH all the way through the chaos. On Aug. 6, 2016, Coinbase CEO Brian Armstrong told the cryptocurrency developer Peter Todd that the change misplaced roughly 17,500 ETC ($40,000 on the time) from replay assaults.

In its weblog publish in regards to the BCH/BSV break up, Coinbase explains that the corporate needs to proceed developing an open monetary gadget with a relied on popularity. Founded in 2012 via Armstrong and Fred Ehrsam, the change hasn’t noticed any primary breaches, in contrast to most of the different buying and selling platforms created again then. As for laborious forks, Coinbase says the company’s engineers are all the time operating across the clock to seek out answers to problems like blockchain splits. “Our security focused approach to hard fork management is a direct result of that mission,” the San Francisco corporate concludes.

What do you take into accounts the best way Coinbase handled the contentious BCH fork that happened final November? Let us know what you take into accounts this topic within the feedback segment beneath.


Image credit: Shutterstock, the Coinbase weblog, and Pixabay.


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$370 Billion Asset Manger Janus Says US Stock Market is Careening Toward Recession

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According to George Maris, the co-head of equities of Americas at Janus Henderson, an asset supervisor with $370 billion in AUM, a recession within the U.S. obviously stays a near-term chance, which might totally opposite the bullish development of the U.S. inventory marketplace.

“It’s [a U.S. recession] clear a near-term risk. If we can’t get trade negotiation results favorably, we’ve got weakening investment to look forward to. I mean there’s going to be a problem,” Maris said on Bloomberg Markets.

The Janus Henderson govt defined geopolitical dangers, home politics, and quite a lot of uncertainties surrounding the U.S. inventory marketplace because the core problems that can result in a full-blown recession within the close to long run.

Very Little Appetite to Get Things Done within the U.S., Stock Market Momentum in Decline?

Over the closing seven days, primary indexes within the U.S. inventory marketplace within the likes of the Dow Jones and the Nasdaq Composite have retraced following a powerful few weeks in January.

While some analysts have stated that the recent momentum of the Dow and its friends has satisfied retail buyers to spend money on the U.S. marketplace, elementary problems stay unchanged.

dow jones industrial average

The Dow has recovered, however the U.S. inventory marketplace continues to grapple with elementary issues that might stifle futures beneficial properties.

Primarily because of the home politics within the U.S. and the focus established on strengthening the southern border, Maris stated that the urge for food to transport ahead from each buyers and corporations has declined.

Maris famous:

“Given the political issues in the United States, there seems to be very little appetite to anything done, so it will be hard to get fiscal expansions, whether it is infrastructure-based or otherwise; tax cuts, etc. to happen is going to be unlikely.”

Considering the state of U.S. politics and the loss of vital growth within the U.S.-China trade talks, the Janus Henderson govt emphasised that dangers of recession will inevitably raise.

“So with that kind of uncertainty happening over the economy, you know recession risks are going to elevate,” he added.

The govt echoed the sentiment of Nobel Laureate Paul Krugman, who stated that the U.S. marketplace is in a worse position than it used to be 10 years in the past all through the Great Recession.

In the closing ten years, Maris defined that the ammunition or the choices of the central financial institution to stop a recession have declined, which will increase the likelihood of a recession within the upcoming years.

The Dow, S&P 500, and Nasdaq are recently ready at the end result of the U.S.-China business talks with low volatility and a reasonably top stage of steadiness.

If the U.S. will get a complete business deal completed by means of March 1, lots of the dangers concerned out there might be eradicated.

However, Maris warned that during a conceivable state of affairs through which a business deal isn’t completed, there exists an opportunity of a steep downturn out there.

He defined:

“If you get trade resolved, then you can start to see those risks diminish. I think what Paul Krugman was talking about was, in fact, there is less central bank ammunition to fight off any sort of recession or financial crisis that we had in 2008 and I think he is right with respect to that.”

Even If a Recession Occurs, It Won’t Be Anything Like the 2008 Financial Crisis

If a recession happens within the subsequent 12 months or two, Maris mentioned that it’s going to no longer mirror the disastrous affect the former 2008 monetary disaster had at the U.S. financial system.

The basics within the native financial system stay robust with employment rates and family balances sheets at document ranges.

“The actual fundamental elements of the economy are good,” the chief stated, including that even supposing a recession happens, the impact it would have at the U.S. marketplace is proscribed.

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TD Ameritrade Says US Stock Market Stability is Luring Investors, But Here’s Why the Dow Might Not Bounce Back

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Throughout the previous two weeks, analysts have most often attributed the restoration of Dow Jones to technical elements, expressing skepticism towards the sustainability of the U.S. inventory marketplace rally.

This week, Shawn Cruz, a dealer technique supervisor at $30 billion brokerage large TD Ameritrade, stated that the sentiment within the U.S. inventory marketplace has progressed, particularly amongst fundamental-based traders.

“[Indicators of economic stability are] giving the more fundamental-based investors faith coming back into the market, which is then driving what technical traders are seeing on their screen,” Cruz stated, speaking to The Wall Street Journal.

Can the Dow Jones Rally?

Since December 24, the Dow Jones has initiated one of the spectacular turnarounds in recent times, improving from 21,782.2 issues to 25,411.52 issues inside lower than two months.

dow jones

The Dow has assembled a large restoration since its late-December lows, however it would now not proceed thru to a brand new all-time top.

The Dow Jones used to be prone to coming into a undergo marketplace in mid-December after the Nasdaq Composite recorded a 20 % drop from its all-time top and formally bought a undergo marketplace standing.

The fast expansion of the Dow Jones previously two months has led traders to query the standards of the motion of the U.S. inventory marketplace.

Apart from technical elements, maximum foremost elements reminiscent of geopolitical risks and weak earnings reports from primary conglomerates within the U.S. stay because the core problems for traders.

On February 4, CCN reported that Raymond Jones fastened source of revenue capital markets head Kevin Giddis stated the U.S. marketplace lacks stimulus to develop within the upcoming months.

“There is obviously a separation between where the equity market sees the world and where the bond market sees the world. We don’t know what’ll cause the next recession, but at the same time, you flip it to the other side and you don’t see much that’ll stimulate economic growth.”

In the ultimate seven days, the Dow Jones has retraced from 25,411.52 issues to 25,045.96. Currently, the Dow is prone to falling beneath the 25,000 stage.

To maintain the certain development of the U.S. inventory marketplace in contemporary weeks, Direxion Investments managing director Paul Brigandi stated that it is vital for the marketplace to take care of its momentum.

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Many traders are buying and selling according to sentiment and are allocating capital into the inventory marketplace once more as primary indexes started to get better.

“Momentum is a key component right now. A lot of people are jumping in to get on board,” he stated.

Investors Have to Consider Short-Term Stock Market Risks

Some analysts foresee a continual rally for the Dow Jones. But, others together with Morgan Stanley senior portfolio supervisor Andrew Slimmon worry for the vulnerable company income launched previously 30 days.

Apart from the oil business, which outperformed the expectancies of Wall Street following a decline in the cost of oil, maximum primary industries have struggled.

The monetary sector has carried out particularly poorly within the fourth quarter with maximum banks reducing again on their projected revenues.

Slimmon said:

“I’m worried. As much as companies look like they made fourth-quarter numbers, the 2019 estimates are dropping, and it strengthens my concern.”

With vulnerable company income, no important construction within the U.S.-China industry talks, and the declining euro-zone financial system, the U.S. marketplace is also prone to experiencing a non permanent development reversal.

As emphasised via TD Ameritrade strategist Shawn Cruz and Direcixion investments govt Paul Brigandi, momentum is an important for the U.S. inventory marketplace.

If the Dow Jones fails to maintain balance above the 25,000 stage, a chance of an extra decline may just accentuate and tremendously modify the present sentiment available in the market which stays certain to this date.

In the non permanent, massive volatility within the U.S. marketplace is anticipated, however analysts stay unsure whether or not that might imply a rally to dance again from this week’s losses or an extra drop to December ranges.

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John McAfee Living in a Constant State of Paranoia Launches Podcast

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By CCN: Following John McAfee’s triumphant return to Twitter after a brief hiatus, the software mogul and his wife on Tuesday announced a new podcast about life on the run.

McAfee’s Life on the Run

This John McAfee gif illustrates his MBTI

The outspoken bitcoin bull’s DGAF disposition. | Source: Giphy

In their announcement, McAfee and his wife describe living on the run and hiding from the government. The software mogul also informs followers that the couple’s brief social media absence was because of an incoming raid.

Can’t Keep John McAfee Down

The outspoken presidential longshot is also a fugitive who will face arrest upon return to the U.S. But McAfee – a bitcoin perma-bull – refuses to let any government keep him down. Following the couple’s announcement today, McAfee posted characteristic crypto advice on Twitter.

He addressed the bitcoin price, suggesting that people who ask him when bitcoin is trading at $7,900 whether they should wait to buy it sound more ridiculous than he looks while getting his hair processed.

“If you like bitcoin, buy it. Who cares whether it’s at $15 or $1,500 or $10,000. If it’s a good deal, f***ing buy it. End of story.”

He then promised to show everyone his hair after it’s done.

Although McAfee and his wife describe their podcast as a chronicle of the couple’s unconventional lives, one major theme is sure to touch on the benefits of decentralized money. If McAfee holds bitcoin, no matter where he goes, he can always use it. Governments may be able to seize the couple’s house, boat, and bank accounts, but they can’t stop bitcoin. At least not without shutting down the internet. Incidentally, McAfee recently expressed an interest in Dogecoin.

Craig Wright vs. McAfee

McAfee is reasonably popular among crypto proponents. But still, some argue that bitcoin and other cryptocurrencies were not designed to help people circumvent taxes or laws.  Among them is controversial figure Craig Wright.

Wright, who registered a copyright on the Bitcoin white paper this morning, is one of McAfee’s most vocal opponents. Wright will undoubtedly argue that McAfee’s podcast will slow mass adoption and increase the public perception that bitcoin’s primary use is for tax evasion and other nefarious purposes.

McAfee Doesn’t Give a F**k!

For those who might disparage McAfee’s unconventional methods of bitcoin evangelism, the presidential candidate has a message:

“As if I give a flying f**k what you think!”

Controversial, outspoken, and intelligent, John McAfee’s podcast is sure to attract a broad audience. But will the McAfee podcast “highlight” the advantages of a decentralized economy and fuel mass adoption or the opposite? Only time will tell.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

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Central Bank of Laos Issues Warning Against Using Cryptocurrency

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The central bank of Laos has warned the public against the use, purchase or sale of digital currencies, local news outlet Vientiane Times reported on May 21.

The Bank of the Lao PDR has issued a warning to financial market participants and the public against cryptocurrency transactions as they are considered illegal in the country. The bank previously banned financial institutions from conducting any operations with cryptocurrencies, as well as making investments in such an asset.

The bank is purportedly concerned about the anonymity of the sender and receiver in a cryptocurrency transaction, which it worries increases the risk of digital assets’ use in money laundering. A source familiar with the matter told Vientiane Times that authorities do not have a relevant security system to protect cryptocurrency owners.

While some countries like, Canada, Malta and Switzerland have embraced the new asset class to varying degrees, officials around the globe are still expressing skepticism toward crypto, while some hardliners call for outright bans.

In the United States, where the legal status of crypto can vary state-to-state, California Congressman Brad Sherman recently called for a full ban on cryptocurrencies. Sherman claimed that crypto presents a threat to the power of the U.S. dollar to affect world economic developments.

In April, Cointelegraph reported that the Indian government was considering a complete ban of cryptocurrencies under the Prevention of Money Laundering Act since it could purportedly be used for money laundering. The Ministry of Corporate Affairs reportedly stated that cryptocurrencies are used in fraudulent schemes to “defraud gullible investors”.

That same month, news broke that Pakistan — which banned cryptocurrency trading last April — is implementing new cryptocurrency regulations in an effort to improve its track record in fighting financial crime. The move was reportedly in part a reaction to demands from international monitoring body the Finance Action Task Force, which has repeatedly voiced concerns about cryptocurrencies’ role in terrorist financing.

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Founder And CEO Of China’s Blockchain-Based Uber, Kuaidi Dache, Shows Concerns Of EOS Use

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Founder-and-CEO-of-Kauidi-Dache-Shows-Concern-About-Use-of-EOS

Founder-and-CEO-of-Kauidi-Dache-Shows-Concern-About-Use-of-EOS

Founder And CEO Of Kauidi Dache Shows Concern About Use Of EOS

  • CEO of Chinese tax hailing app criticizes the lack of decentralization in EOS.
  • The EOS blockchain network focuses on scalability above decentralization, which has earned it many critics.

Everyone has an opinion of cryptocurrency, whether it is about the industry as a whole or of the market. Weixing Chen, who founded and runs a taxi-hailing app called Kauidi Dache in China, recently commented about one particular crypto asset – EOS. In a statement from Weibo, Chen stated that he was worried about EOS and assets like it in their prioritization of scalability.

The statements were translated, as Chen said that he takes no issue with the technological advancements. Instead, the issue is found in “fraudulent propaganda,” according to the translated text. Chen referred to Million TPS and Next Generation Operating System as examples. He has quite a reputation in the venture capital sector of the Chinese economy as an anti-EOS figure.

Right now, EOS has a valuation of $5.8 billion, and it holds the record as the largest initial coin offering (ICO) to ever occur within the crypto industry. With no live product, the token managed to raise up to $4 billion in May 2018. The following month, the EOS blockchain protocol launched with 21 individuals to produce the blocks on the blockchain ledger with data from the transactions and smart contracts. These individuals are known as “block producers.”

Since the launch, EOS has become increasingly popular amongst users of decentralized applications (dApps). DappRadar reports that the EOS blockchain network is the host of the top three dApps right now, but that has not stopped experts from criticizing how decentralized the network is. The network primarily focuses on offering substantial scalability, along with a high capacity for large transactions, offering plenty of benefits to dApp developers.

Nick Szabo, a pioneer for smart contracts, stated that EOS makes it possible for anyone to freeze funds that users assume belong to them. Further explaining, he said, “Under the EOS protocol you must trust a ‘constitutional’ organization comprised of people you will likely never get to know. The EOS ‘constitution’ is socially unscalable and a security hole.”

This criticism came after a controversial article came out regarding the governance system of the blockchain network. The article says that an inactive account, after three years, can be put up for auction. All of the proceeds from that auction are “distributed to all Members according to the system contract provisions then in effect for such redistribution.”

The CTO of EOS, Dan Larimer, said in October 2018 that the high transaction capacity of EOS is based on the fact that the platform doesn’t solely focus on decentralization. He pointed out that the platform wants to focus on fighting censorship and for “robustness against being shut down.”

https://twitter.com/bytemaster7/status/1120028298573164544

Only the market can decide if prioritizing scalability for EOS is the right approach, but clearly, EOS is gaining interest in the market, or developers would not use the network with such abundance to develop their dApps. The flexibility and capacity for large transactions is appealing, but Chen and investors like him don’t condone the lack of decentralization.

Bitcoin was based on decentralization and ensuring that the public could have a currency that is not ruled by any one country or other entity. Still, the dApp market is new, and it is hard to tell which of the protocols amongst Ethereum, EOS, Cardano, TRON, and others are the right one. Presently, it is impossible to compare dApps to centralized applications, as the last 24 hours alone only show 10,000 users participating.

As of 2:00pm PST, the EOS token is trading at $6.36 after increasing by 1.14% in value in the last 24 hours.

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