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Bitcoin Warning As Serious Security Vulnerabilities Uncovered

Bitcoin developers have been trying to make the world’s most popular cryptocurrency more useful for payments, with the somewhat controversial Lightning Network one of the most popular projects.

However, serious security vulnerabilities have this week been discovered on the bitcoin Lightning Network, which could result in users losing their funds if nodes are not upgraded.

“Security issues have been found in various Lightning projects which could cause loss of funds,” wrote software developer, Rusty Russell, who authored the majority part of bitcoin’s Lightning Network protocol specification, in a post shared via a Lightning Network mailing list. “Full details will be released in four weeks, please upgrade well before then.”

The specifics of the vulnerability will be disclosed on 27 September, a common software security practise to both prevent bug exploitation and give developers time to patch problems.

The vulnerability appears to be related to the lightning-ready bitcoin wallet Eclair, which Russell also advised users to update.

The Lightning Network, first proposed by Thaddeus Dryja and Joseph Poon in a 2015 white paper, creates a layer on top of the bitcoin blockchain, where transactions can be passed back and forth before being added to the underlying blockchain.

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This should mean bitcoin transaction speeds are increased while costs are significantly reduced.

There are now a few different Lightning-ready wallets available, as well as companies that are able to process them on behalf of merchants.

However, low user numbers mean bitcoin lightning nodes currently lose money when they process transactions, according to recent reports.

When sending a Lightning payment, two parties deposit the funds at one bitcoin address, a so-called channel, in which they can exchange funds a limitless number of times.

This maintains bitcoin’s security but means small, regular payments don’t need to be added to the underlying blockchain until the channel is closed.

Questions have been raised about what Lightning Network adoption will mean for the bitcoin price, with much of the price dependent on transaction fees picked up by miners.

Most are though confident that with increased bitcoin adoption the price will continue to rise.

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: Bitcoin Warning As Serious Security Vulnerabilities Uncovered

By Daniel Chechik, Ben Hayak, and Orit Kravitz Chechik A mysterious vulnerability from 2011 almost made the Bitcoin network collapse. Silk Road, MTGox, and potentially many more trading websites claim to be prone to “Transaction Malleability.” We will shed some light and show in practice how to exploit this vulnerability.

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Taiwanese Chip Manufacturing Giant Blames Revenue Losses On ‘Crypto Winter’

Taiwanese chip manufacturer United Microelectronics Corporation saw a roughly 10% decrease in revenue in the fourth quarter of 2018. Like TSMC, who provide chips to Bitmain, they prominently attribute some of their losses to the downturn in demand for cryptocurrency. Less demand amounts to less need for mining, which subsequently lessens the demand for mining hardware…..

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Gold Backed Crypto Exchange Offers Safe Haven for Crypto Investors | The Daily Hodl

GOLD.IO Seeks to develop a decentralised and self-regulating community exchange.

Turbulence in the global markets is nothing new but the cryptocurrency community has faced an unprecedented 18-month period of flux. The need for a fully decentralized, stable, self-regulated and community-led exchange that can offer investor confidence amidst a chaotic global economy has never been stronger…….

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New York to Have First Crypto Task Force – NullTX

Recently, New York State became the first state in the nation to create a cryptocurrency task force to study how to properly regulate, define and use cryptocurrency. Last week, NYS Governor Andrew Cuomo, signed into law THE DIGITAL CURRENCY STUDY BILL, A8783B/S9013. The members of the task force, appointed by the Governor, Senate and Assembly, are to submit reports by December 15, 2020. The members will include stakeholders such as, technologists, consumers, institutional and small investors, large and small blockchain enterprises and academics. The group shall report on digital currency, cryptocurrency and blockchain technology.

Source: New York to Have First Crypto Task Force – NullTX

Trade Santa – Automated Crypto Trading Made Simple – NullTX

A cloud software with a Christmas-like name Trade Santa argues crypto-holders have the opportunity to benefit from crypto-market fluctuations by means of automated trading. Trade Santa is a cloud platform that enables crypto-holders to automate their trading on exchanges. They claim its software automates simple strategies relied upon by thousands of traders around the world, and the company hopes to ensure capitalizing on fluctuations in cryptocurrencies doesn’t need to be a full-time job. Users can accelerate the trading process as bots are able to simultaneously track market shifts for unlimited trading pairs and place hundreds times more orders compared to manual trading……

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How Can a Blockchain Bank like FOTON Benefit All the Stakeholders? – NullTX

Blockchain technology is taking over the world. Cryptocurrencies saw an unprecedented boom in investment in 2017. While the cryptocurrency market capitalisation peaked at $ 800 billion and has seen a correction to $ 131 billion in December 2018, the adoption is increasing at a rapid pace. The technology where a distributed ledger was able to securely log transactions anonymously gave us Bitcoin, the world’s largest cryptocurrency. Furthering the use cases, project team at Ethereum built Smart Contracts based on blockchain.

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Crypto exchange Huobi Russia launches legal lab – TokenPost

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Source: Crypto exchange Huobi Russia launches legal lab – TokenPost

Bitcoin, Ether, Ripple and other cryptos lose nearly $700 billion since January – Eric Lam

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Hong Kong: The great cryptocurrency crash of 2018 is heading for its worst week yet. Bitcoin sank toward $4,000 and most of its peers tumbled on Friday, extending the Bloomberg Galaxy Crypto Index’s weekly decline to 25 percent. That’s the worst five-day stretch since crypto-mania peaked in early January. After an epic rally last year that exceeded many of history’s most notorious bubbles, cryptocurrencies have become mired in a nearly $700 billion rout that shows few signs of abating.

Many of the concerns that sparked the 2018 slump – including increased regulatory scrutiny, community infighting and exchange snafus – have only intensified this week. Even after losses exceeding 70 percent for most virtual currencies, Oanda Corp.’s Stephen Innes has yet to see strong evidence of a capitulation that might signal a market bottom.

“There’s still a lot of people in this game,” Innes, head of trading for Asia Pacific at Oanda, said by phone from Singapore. If Bitcoin “collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.” Innes said his base case forecast is for Bitcoin to trade between $3,500 and $6,500 in the short term, with the potential to fall to $2,500 by January.

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