Japanese Cryptocurrency Exchange Hacked, $59 Million in Losses Reported

Blockchain Cryptocurrencies

Japanese cryptocurrency exchange Zaif has discovered that a security breach on September 14 led to the loss of $59 million worth of cryptocurrency.

Hackers have reportedly stolen $59 million worth of cryptocurrencies from Japanese cryptocurrency exchange Zaif, Cointelegraph Japan reports September 19.

According to a local report, as a result of a security breach on September 14, hackers managed to steal 4.5 billion yen from users hot wallets, as well as 2.2 billion yen from the assets of the company, with total losses amounting to 6.7 billion yen or around $59.7 million.

Tech Bureau Inc, which operated Zaif, stated in press release that the exchange detected a server error on September 17, after which Zaif suspended deposits and withdrawals. On September 18, the exchange realized that the error was a hack, and reported the incident to the Japanese financial regulator, the Financial Services Agency (FSA). Hackers stole 5,966 bitcoins (BTC) in addition to some Bitcoin Cash (BCH) and MonaCoin (MONA).

According to Tech Bureau Inc, the firm Fisco Digital Asset Group will help Zaif cover lost customer assets by providing 5 billion yen ($44.5 million). Tech Bureau made an agreement with Fisco to dismiss more than half of its directors and corporate auditors in addition to Fisco becoming a majority shareholder in the company.

Zaif exchange is the 101st largest cryptocurrency exchange in terms of trade volume, according to CoinMarketCap.

Earlier this year, Zaif admitted to a “system glitch” that allowed users to temporarily acquire trillions of dollars worth of Bitcoin (BTC) for free in February. 16 customers were accidentally able to “trade” yen for cryptocurrency at a rate of 0 yen per coin.

Copyright on Blockchain, Explained

Blockchain Copyrights

Copyright rules have always struggled to follow up with technology – and blockchain is creating new challenges, as well as solving some.

Are there any exceptions to copyright rules?

This varies from country to country.

For example, in the UK, the principle of “fair dealing” means small excerpts of a copyrighted work can be used for the purposes of studying, news reporting and teaching. The European Copyright Directive goes further, as it enables you to satirize copyrighted works and use brief clips of TV shows or songs for parodies.

Meanwhile, halfway across the world in New Zealand, there is no exemption for comedy and satire – something which has frustrated comedians and content creators.

MyCryptons, a blockchain-based platform where users can buy and sell digital collectibles, is one site which benefits from the common exemption of parody and satire when it comes to copyright. It offers collectibles based on public figures – including politicians, talk show hosts and musicians – along with a distinctive illustration, sometimes with exaggerated features for comic effect.



Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.


What’s the deal with my social media posts? Are they copyrighted?

Again, the waters are murky here – even the World Intellectual Property Organization (WIPO) is vague on some of the details.

When it comes to tweets, WIPO says that, in actuality, some of them may be too short to qualify for the copyright protection usually enjoyed by authors. Why, you may ask? Because their short length means that they are “unlikely to reach the level of creativity required.” Of course, comedians creating witty one liners may beg to differ here – especially when so many of them have their content ripped off by other accounts, which pass off the content as their own without a credit. That said, there can be exceptions. A WIPO article back from 2009 cites experts as saying that a collection of tweets may be eligible to be copyrighted, which is pretty pertinent in light of longer character allowances and the popularity of threads, where posts are joined together.

You may think that you would be the exclusive holder of copyright to the content you post on other social media platforms, but WIPO says that it’s always worth reading the small print. In the past, if you uploaded photos to Facebook or videos to YouTube, they reserved the right to use the content you post. That said, on the bright side, both platforms offer mechanisms where posts that rip off your content can be taken down.

The dynamics of copyright on social media are ever changing. Recently, the EU voted in favour of two controversial provisions set out in a new copyright directive. Article 11 means tech giants such as Facebook and Google, as well as aggregator sites, would need to pay news outlets whenever they link to their stories or share excerpts of their articles. Meanwhile, Article 13 would mean video-sharing sites need to obtain licenses to show music videos, in the hope this would improve remuneration for artists.

Could industry bodies also get involved?

Major players in music, photography and literature are also starting to devise their own solutions with the hope of becoming market leaders.

Among them is Kodak, which has licensed its brand to Wenn Digital, the developer of a blockchain-based image rights platform.

KODAKOne hopes to speed up payments for those who want to purchase professional images – and help photographers detect infringements quickly and recover the fees they are owed. Its web crawler technology scours millions of websites to detect how pictures are being used, and provides “simplified legal proceedings” to ensure copyright owners get the compensation and recognition they deserve.

Blockchain is also addressing fragmentation in the way copyright across the music industry is recorded. As reported by Cointelegraph, information relating to compositions and songs is scattered across 5,000 databases. Dozens of companies – including major streaming services and record labels – have signed up to be part of a blockchain-based, universal rights registry called the Open Music Initiative, which no one controls but everyone contributes to. Following a significant upheaval in the way the music industry works – with streaming threatening sales and live shows becoming ever more crucial – the scheme hopes to bring about “sustainable business models for artists, entrepreneurs and music businesses alike.”

How could copyright be officially applied within blockchain?

Well, we may see governments around the world adopt this technology for themselves.

Tonya M. Evans, a US-based lawyer who specializes in intellectual property, recently wrote about how some administrations are “quietly exploring how to implement blockchain technology for their copyright registration systems.” Indeed, she cited an article from Iran’s Financial Tribune which reported on Tehran’s plans to move its infrastructure to blockchain. It has forged a deal to build a new system with a specialist company, and hopes the procedure will be “fast and user-friendly.”

What are the laws outside of blockchain?

It varies from country to country – but generally, copyright protection is granted automatically.

In the UK, for example, this means that any artworks, illustrations or pictures you take are protected by copyright instantly – without cost. It prohibits others from copying them, distributing copies of them or putting it on the internet, but the law doesn’t currently mention the ramifications when it comes to blockchain.

There are also treaties governing copyright which have an international reach. The Berne Convention, created back in 1866, has been adopted by dozens of countries around the world. It means a copyrighted photo in Afghanistan can enjoy the same protections in Australia. Three basic principles govern the convention – including the notion that works protected in one member state must be given identical protections by all others.

Can someone post one of my photos or illustrations on blockchain without permission?

Not right now… but this could change in the future.

The reason why it isn’t possible at the moment is merely technical. Scaling problems (something we’ve reported extensively on at Cointelegraph) mean there’s a limit to the amount of data that can be processed in a single block. As a result, blockchain isn’t incredibly compatible with images in its current form.

However, if and when these problems are resolved, it could become a reality. And although there are several blockchain platforms out there which aim to provide an immutable record of who owns an image, and where it has been used, there’s nothing stopping someone from claiming they own the rights to one of your artistic masterpieces – or a selfie you took on holiday.

This could pave the way for someone to make a pretty penny off your hard work, especially if a platform’s verification process is wanting. It can be difficult to prove ownership of an image, and if you disagree with the way it has been recorded in a blockchain, there might be no one there who you can raise a dispute with. Taking a legal route to claim you hold the rights to an image on blockchain may also be near impossible – especially considering the courts are almost always behind the curve when it comes to technology.


Europol: Bitcoin Remains Cybercriminals’ First Choice, But Privacy-Focused Alts Will Rise

Altcoin Crimes

A new cybercrime report from Europol predicts cybercriminals will increasingly turn to anonymity-focused altcoins such as Zcash (ZEC) and Monero (XMR).

Europol’s new cybercrime report has found that Bitcoin (BTC) remains the most popular form of crypto for illicit uses, but predicts a rise in the popularity of anonymity-focused altcoins such as Zcash (ZEC) and Monero (XMR). The report, the fifth edition of Europol’s Internet Organised Crime Threat Assessment (IOCTA) to date, was published yesterday, September 18.

According to Europol, even as Bitcoin’s market share dropped as low as “35 percent in early 2017,” it remained the most “commonly encountered” crypto in cybercrime investigations across the European Union.

Europol anticipates that while Bitcoin for now dominates the landscape, anonymity-focused altcoins that offer the protection of “stealth addresses” are likely to gain traction and potentially make “current [crypto] mixing services and tumblers obsolete.”

For example, among jihadist networks, Europol found that mass donations in the form of Zcash were popular among those who donated to campaigns in Islamic State (IS)-affiliated websites, although it noted that the use of crypto by terrorist groups has so far been limited to “low-level transactions,” and does not account for a significant share of their funding stream:

“Despite the clear potential, none of the attacks carried out on European soil appear to have been funded via cryptocurrencies.”

IOCTA outlines a range of crypto-related phenomena on the cybercrime landscape, including cryptojacking, crypto-targeted phishing, and an increasing number of attacks on crypto exchanges or other crypto depositories, which Europol argues are viewed by criminals as a “soft target” in comparison with corporate banks or other traditional institutions.

Europol notes that not only exchanges, but “mining services and other wallet holders are facing hacking attempts as well as extortion of personal data and theft.”

The report notes that crypto has for several years offered the advantages of a decentralized infrastructure and pseudonymous transactions for laundering criminal proceedings, but suggests that as the large crypto industry players fall under the purview of regulators, decentralized exchanges may soon become a more advantageous channel for launderers.

Just today, Cointelegraph reported that a leaked code targeting Microsoft Systems — which hackers allegedly stole from the U.S. National Security Agency (NSA) — has sparked a fivefold increase in cryptojacking infections.

First Bentley Bought With Bitcoin in the US

Bentley Bitcoin

Two weeks ago, Houston hospitality mogul, Tilman Fertitta, announced that his luxury car dealership would accept bitcoin and bitcoin cash. Well it seems like the market was ready for the move, as he has already found his first bitcoin customer. First Bentley Bought With Bitcoin Post Oak Motor Cars is a dealership for Rolls Royce, Bugatti and Bentley, along with a selection of high-end pre-owned models. It recently partnered with payment processor BitPay to “allow

The post First Bentley Bought With Bitcoin in the US appeared first on Bitcoinist.com.

Huobi Joins Russian Financial Services Platform to Share Notes on Crypto Regulation

Bitcoin Regulation Blockchain

Crypto exchange Huobi will help a Russian development bank with crypto-related regulation and creating a legal basis for digital assets.

Cryptocurrency exchange Huobi has joined Russia’s VEB Innovation Fund to share notes on crypto regulation, according to a fund’s press release published Wednesday, September 19.

According to Crunchbase, the VEB Innovation Fund was created in 2011 to invest in Russian high-tech startups and to promote local innovations in the global market. The Center of Digital Transformation, where Huobi is now a resident, was created by VEB to promote blockchain and other crypto-related technologies, as its website states.

One of the main goals of the partnership with world’s fourth largest crypto exchange, as reported in the statement, is to draw on the crypto regulation experience gained by Huobi and to apply it in Russia, especially for adjusting the legal framework on digital assets.

VEB Innovations CEO Vladimir Demin explains that Huobi expertise will help create “a legal basis that could compete with current promising jurisdictions.”

Andrey Grachev, a Huobi spokesperson in Russia, further explained that Huobi has intended to enter the Russian market since April:

“We’re glad it has finally happened. Russian investors had no communication with global trading platforms so far, and Huobi is the first to open its unit in Russia”.

As cited by VEB Innovations, Senior Director of Huobi Global Edward Chen said the crypto exchange would provide Huobi Cloud services in Russia and would also allow Russian investors to use Huobi OTC.

Huobi is not the first crypto-related company to interact with the VEB-affiliated organization. According to its website, VEB has already partnered with Ethereum and Russian blockchain platform Waves.

As Cointelegraph reported earlier in May, the State Duma — a lower house of Russian Parliament — has already accepted a bill on crypto regulation in the first of three readings. In its first edition, the“On Digital Financial Assets” bill defined cryptocurrencies, as well as blockchain-related technologies such as smart contracts, mining, and Initial Coin Offerings (ICOs).

However, according to an article published by Russian newspaper “Izvestia” Wednesday, September 19, shortly before the second reading the definition of “cryptocurrencies” completely disappeared from the document, as the bill now focuses on tokens and investments.

In September, Cointelegraph wrote that a Russian lobby group of high-ranked managers, including two of of the top ten Russian billionaires according to Forbes, started to prepare an alternative bill on crypto regulation, as one of the group’s experts called the initial bill “unfinished and fragmented.”

US Financial Giant PNC to Use Ripple Technology for International Payments

Banks Blockchain

Top ten bank PNC announced it will use Ripple’s blockchain solution, xCurrent, for international commercial payments.

PNC, which is ranked among the top ten U.S. banks, will use RippleNet to process international payments for its customers, Ripple announced Wednesday, September 19.

As Reuters reports, a particular PNC unit — Treasury Management — will use Ripple’s blockchain solution xCurrent to speed up overseas transactions held by U.S. commercial clients.

Ripple emphasises that xCurrent will allow PNC business clients to receive payments against their invoices instantly, changing their approach to managing both accounts and their working capital.

Senior vice president for product management of Ripple, Asheesh Birla, thinks that using xCurrent in banking is the first step towards adoption of other Ripple products, such as the xRapid solution set to be launched in a few months. “It’s a way [for the banks] to get their toe into the water,” Birla told Reuters.

The news come despite the fact some Ripple employees were sceptical about using xCurrent in cross-border payments. As Cointelegraph reported in June, Ripple’s chief cryptographer David Schwartz said banks were unlikely to deploy the technology because of low scalability and privacy problems.

PNC, listed by Bankrate as one of top ten largest U.S. banks with 8 million customers and retail branches in 19 states, joined other global financial institutions which had previously partnered with Ripple.

For instance, in late 2017 American Express announced it was creating a Ripple-powered app for B2B payments between US corporate customers and Santander UK customers. Later in March, a Japanese bank consortium stated it will release an instant domestic payments mobile app “MoneyTap” based on Ripple.

And in April, Cointelegraph wrote that Spanish-based bank Santander launched Ripple-powered blockchain payment network One Pay FX, reportedly becoming the first international bank to do so.

Crypto Markets Hold Supporting Levels With Small Fluctuations, BTC Trades Around $6,300

Altcoin Cryptocurrencies

Crypto markets hold supporting levels with some small fluctuations, and Bitcoin is trading around $6,300.

Wednesday, September 19: crypto markets are holding recent gains and fluctuating around previous support levels. While 16 out of the top 20 altcoins by market cap are seeing some red today, total market cap still hovers around recent levels, according to CoinMarketCap.

Market visualization from Coin360

Bitcoin (BTC) is slightly down 0.12 percent over the past 24 hours, still holding the supporting level of $6,300 after dropping below that price point last week. Bitcoin is trading at around $6,334 at press time, and up about 0.48 percent over the past 7 days.

Bitcoin weekly price chart. Source: Cointelegraph Bitcoin Price Index

Ethereum (ETH) is seeing more minor losses today, down about .2 percent over a 24 hour period. After having dropped to as low as $127 over the past 7 days, Ethereum is trading at about $208 at press time, which constitutes around 12 percent gains over the week.

Ethereum weekly price chart. Source: Cointelegraph Ethereum Price Index

Total market cap has been fluctuating around the $199 billion point over the day, currently at about $198 billion. The number of cryptocurrencies listed on CoinMarketCap is now 1,977.

Weekly total market capitalization chart. Source: CoinMarketCap

The general losses among the top 20 cryptocurrencies by market cap amount to between 2-3 percent, while the 20th top coin Dogecoin (DOGE) has seen a deep decline of 7.8 percent. The altcoin is trading at $0.0056 at press time, which is also about a 13 percent drop over the past 7 days.

Earlier this week, the CEO of SpaceX and Tesla Elon Musk asked Dogecoin developer Jackson Palmer to help him to get rid of “annoying” cryptocurrency scammers on Twitter.

Bitcoin Cash (BCH) is down almost 3 percent over the past 24 hours, still holding about 0.2 percent over the past 7 days, and trading at about $425.

Ripple (XRP), the third cryptocurrency ranked by market cap, which had seen the largest gains yesterday, is keeping upward trend today. XRP is up around 2.5 percent over the past 24 hours, and trading at $0.32, which amounts to almost 24 percent gains over the week.

On September 18, the New York Attorney General’s office issued a report warning that cryptocurrency exchanges are vulnerable to manipulation, conflicts of interest, and other consumer risks, according to an investigation based on information requests to 13 crypto exchanges earlier this year.

Recently, Germany’s Finance Minister Olaf Scholz expressed scepticism about the chance that cryptocurrencies can replace traditional fiat money, claiming he “would doubt today, whether is has a perspective as a currency model.”

Also on September 18, the U.K. Treasury Committee called for cryptocurrency regulations in order to protect investors in relation to major issues around the industry, such as price volatility, poor consumer protection, the risk of hacker attacks, and money laundering.

Cryptocurrency Mining Malware Detections Up Almost 500 Percent in 2018: Report

Altcoin Crimes

The tool that exploits Microsoft vulnerabilities to enable widespread crypto extortion has let malware proliferate this year, says a new report.

Leaked code targeting Microsoft Systems which hackers allegedly stole from the U.S. National Security Agency (NSA) sparked a fivefold increase in cryptocurrency mining malware infections, Bloomberg reports Wednesday, September 19, citing a new cryptojacking report.

Eternal Blue, the tool which can exploit vulnerabilities in Microsoft software, is behind the now-infamous global cyberattacks WannaCry and NotPetya, which continue to cause disruption since they first surfaced in 2017. Bloomberg notes that Eternal Blue was allegedly stolen from the NSA in 2017 by a hacking group called the Shadow Brokers.

Hackers have since been using the tool in order to gain access to computers in order to covertly mine for cryptocurrency, with detections up 459 percent this year, according to the report from the Cyber Threat Alliance (CTA).

“Combined threat intelligence from CTA members show that this rapid growth shows no signs of slowing down, even with recent decreases in cryptocurrency value,” the company writes in a preface to its most recent report, stating:

“Because this threat is relatively new, many people do not understand it, its potential significance, or what to do about it.”

Cointelegraph has often reported on the emergence of crypto mining malware infecting user devices such as PCs and smartphones. Rather than Bitcoin (BTC) or Ethereum (ETH), it is privacy-focused altcoins such as Monero which are hackers’ preferred target, the report notes.

The uptick, CTA says, comes as such operations are becoming more “sophisticated.”

“Analysts have observed successful and widespread attackers ‘living off the land,’ or employing legitimate functionality to download and execute miners that would be more difficult for an observer or antivirus to detect,” the preface continues, highlighting the Monero mining campaign Smominru as an example.

The NSA did not respond to Bloomberg’s request for comment on the findings upon publication.

Summer Is Ending: Will Ethereum’s ERC-20 Pass the Governance to ERC-777?

Altcoin Ethereum

The oncoming release of Ethereum’s ERC-777 may finally free the community from the problem of ‘stuck’ tokens.

The end of summer is a great time to set personal goals, to soak in the final days of sunshine and to reminisce about the summer’s major events, like the promise made by Jordi Baylina, Jacques Dafflon and Thomas Shababi to introduce the ready-made ERC-777 token community standard, which is intended to replace the world’s most popular token standard, the ERC-20. The promise was made by Baylina on July 20 at the DappCon forum in Berlin, where important initiatives, tools and updates related to the Ethereum blockchain are traditionally discussed. The developer stated that the ERC-777 was ready to be launched and would be made fully available in August.

However, August has now come and gone, with the development team seemingly keeping silent — or possibly preparing a surprise — around the latest attempt to create a new standard on Ethereum blockchain. While no updates related to ERC-777 have appeared on GitHub since July, a Twitter post made by Baylina last week may give us a little clue about the upcoming release. For now, let’s go back in time to better understand the background of such an initiative.

Why was it necessary to change the most popular token standard in the world, which has served as the basis for more than 60,000 projects — including EOS, with a capitalization of more than $4.5 billion — and for the tokens of one of the world’s largest crypto exchange, aka Binance? In order to answer this question, it is necessary to compare both existing and new standards, and then assess the risks of their application.

Success story

While Bitcoin is considered the most popular cryptocurrency in the world, Ethereum is not only the second most popular cryptocurrency, but also the blockchain that led to a boom in crypto markets during 2016-2017. If there were no Ethereum platform, there would never have been the phrase “to the moon”, which turned cryptocurrency from entertainment for geeks to a new tool for classical investors and millions of ordinary people in a matter of months.

The main merits of the Ethereum blockchain include that the process of developing an application is extremely simple and the procedure for issuing a token using a smart contract goes off without the slightest hitch. Now, creating a token — that is, issuing a new crypto — can be done by anyone in one minute. This ease led to the explosive ICO boom. Another tool that could further contribute to the development of the ICO market was a single standard for tokens — and thus appeared ERC-20.

The ERC-20 standard

Prior to standardization, Ethereum developers had to create a separate Solidity-based smart contract for each token. In fact, each time, it was necessary to create a new, unique type of smart contract. And the founders of an exchange or wallet had to write a unique code to support each new token. The more tokens that appeared, the more difficult this process became. In addition, tokens issued on unique smart contracts were poorly compatible with each other.

Before ERC-20 was created, Ethereum developers have created a single standard for all tokens — the ERC-20, where ERC means “Ethereum Request for Comment” and 20 is the number of the community request, which in this case is arbitrary.

The emergence of a single standard, which was released in 2015, revolutionized the crypto industry and became the central guideline, specifying which functions and events have to be implemented in a smart contract. Never before was the issuance, exchange and cash out of new currencies so simple.

The standard contains the six mandatory parameters of a smart contract and is responsible for three main directions:

1. Setting the initial distribution of tokens:

totalSupply — determines the maximum number of tokens, which upon reaching, the smart contract stops issuance.

balance0f — a function that assigns a primary number of tokens to any address.

2. Transferring tokens:

transfer — a function that moves tokens from the primary address to the address of the new owner following the results of an ICO.

“transferFrom” — a function that moves tokens between users.

3. Performing management functions:

“approve” — a function to check the availability of tokens for a smart contract.

“allowance” — a function to confirm that the address has enough tokens to initiate the transfer.

Once this standard was formulated, exchanges and wallets were able to unify their code in order to handle any tokens created with the ERC-20 protocol. The growth of future applications using ETH then skyrocketed, as was expected.

The challenges behind the ERC-20 standard

Developers of decentralized networks are programmers first and foremost, and then businessmen. Therefore, in decision making, one almost always follows formal logic. For example, some of developers might be not very concerned about a “51 percent attack” either because the coin itself depreciates or because the attack cost can exceed the profit received by a hacker. But it seems the organizers of such attacks have a completely different logic, which is proved by a big number of new attacks in 2018.

The next thing that the developers did not overlook was considering a token’s functionality to be necessary only for an ICO launch but not for any additional services. This proved not to be the case — some teams, even those far from programming, began to explore possibilities of blockchain. For example, this led to appearance of tokens created for fun, as was the case of the Useless token.

Other custom features could even damage users’ security. For example, some developers implemented the option of recharging exchange accounts through the simultaneous execution of the “approve” and “transferFrom” functions. The funds were written off from the sender’s account but were not credited to their exchange balance, since the functionality of the recipient’s smart contract as a deposit was not determined. The problem was that the Ethereum developers did not provide such an option for using this kind of transfer and did not prohibit it, and blockchain did not initially support the self-determination function of the contract. As a result, the owners of the cryptocurrency lost millions of dollars, disappearing into the network forever — as the money simply disappeared if the unfulfilled transaction was not immediately canceled by the sender.

This vulnerability was noticed by security auditor Dexaran, who subsequently developed the ERC-223 standard, in which the “tokenFallback” function was added — which is launched if the “transferFrom” function isn’t performed. Despite the invention, however, this new function, created by the anonymous programmer, hasn’t yet received widespread acceptance.

One more vulnerability has been detected by Lucas Cremer, a Solidity developer from Germany, in June, after Solidity update. It turned out that a significant percentage of ERC-20 tokens — which the author called “bad tokens” — behaved in yet another way regarding the return values of the transfer function. The transfer functions of these token contracts did not return anything. Indeed, among the affected tokens were those of Binance and OmiseGO. What one should be concerned about, Corner states, is that such assets could start behaving in an unpredictable way, and he warned that the bug needed to be fixed “as soon as possible.”

ERС-777: A Heavy Left-Hook Attack on ERC-20

Since tens of thousands of tokens, exchanges and wallets closely interact with ERC-20, its vulnerability is irremovable, — so the Ethereum developers have decided to issue a new standard with a name inspired by the lucky number 777.

EIP (Ethereum Improvement Proposals) on ERC-777 were published on Nov. 20, 2017 and received the community’s approval. However, in order to fully function, the new standard needed an auxiliary ERC-820 protocol, which set the principles for the formation of a single register of smart contracts. With the help of this centralized registry, the main problem of the Ethereum blockchain — the impossibility of determining the functions performed by the contract — was solved.

How does it work now? Any contracts with a description of the functions can be entered into the register once and for all; and, when executing a transaction, the blockchain can apply to the register to clarify the permissible actions. If a user attempts to perform an invalid operation with the tokens, they simply remain on the account and do not disappear.

At Berlin’s DappCon, Jodi Baylina and Jacques Dafflon explained the specifics of the new standard by using a new term — “hook” — to determine “functions that can be called during a transfer.” These functions operate in conjunction with the ERC-820 protocol to provide a simple type of a detailed introspection which is lacking in ERC-20. Thus, it becomes possible to check whether a token possesses concrete features in order to perform or decline the operation, making the smart contract even smarter. The new ERC-777 standard will fix the problem of a recipient’s tokens being lost when sent to a contract that doesn’t support the receiving or managing such assets. Because of such a bug, the Ethereum community has already lost millions of dollars. A big part of the funds appear to be trapped inside some of the top ICO projects contracts forever. Here are some of them:

However, protection against token loss as a result of incorrect transactions is not the only innovation of the new standard, which is aiming to further develop the blockchain.

For example, ERC-777 creators built in a ‘trusted operator’ function for the first time, which can transfer and burn tokens on behalf of the owner. This is achieved by executing the ‘authorizeOperator’ function and can be used, for example, to perform instant, automatic payments in ETH.

In addition, this standard allows you to check the address of the recipient for availability concerning ‘white’ or ‘black’ lists through the function ITokenRecipient. Additionally, the ‘hooks’ mentioned above make possible the monitoring of the behavior of a token, depending on the circumstances, which allow you to block certain addresses and perform a number of other actions — including the intervention by the sender and the receiver in the transaction process.

If you need additional details on ERC-777, you can consult the relevant thread on Ethereum’s GitHub.

A curtain call, number 20

The ERC-777 standard is backward compatible with ERC-20, and any project based on the previous version of the standard can be transferred to the new one without problems. We can assume that the exchanges and wallets, which work with the tokens of the previous standard, will react positively to the initiation of ERC-777 — which finally closes the legendary ‘hole’ in the Ethereum blockchain. In practice, this will mean simplifying the procedure for listing coins on the new standard, which could cause a new surge in activity in the crypto industry comparable to the wave of enthusiasm in 2016-2017.

In addition, the new standard significantly expands the functionality of the Ethereum blockchain system, which will attract the attention of developers. Rampant discussion of the new standard serves as the brightest evidence.

And finally, the ERC-777 standard contains completely redesigned functions and logic, which will avoid crosses with other tokens standards and confusion when executing smart contracts.

Speaking about the disadvantages of ERC-777, yes, there is one: It relies on a centralized register of smart contracts — which is not an ideal approach within the decentralized ideology of blockchain. This will require additional measures from the Ethereum developers to ensure the security of its registry.

A famous crypto YouTuber “Ivan on Tech” is sure that the success of ERC-777 is just a matter of time, even despite the fact that the Ethereum Foundation might be slow in writing off ERC-20 entirely:

“Going forward, [the] Ethereum Foundation really [needs to get] behind ERC-777, and it could replace ERC-20, because it’s better. And therefore, it’s all about [the] Ethereum Foundation still has quite an influence and they are currently pushing for ERC-20. This is what they are advertising the most. But, in the future, it might be the case that we switch to ERC-777.”

Perhaps, a new, promising token standard will give a fresh impetus to the development of the Ethereum network — and ETH, in particular, which has hit a new low since July: $194. Until then, while GitHub is keeping silent, there seems to be nothing better to do than just letting the Ethereum team finish their work — we know that they are good at it.

‘Illusionary’ Customer Protections: NY Attorney General Dampens Bitcoin ETF Hopes

attorney general Barbara Underwood
cboe bitcoin etf

Following a recent report of New York State’s Attorney General, an economist believes that the document confirms “zero” chances of a Bitcoin ETF approval in 2018. ‘Odds of Bitcoin ETF Approval in 2018 = 0’ A new report of the New York States Office of the Attorney General (OAG) Barbara D. Underwood, outlined the issues which existing cryptocurrency exchanges face compared to traditional venues. According to the document, digital currency exchanges are up against serious problems

The post ‘Illusionary’ Customer Protections: NY Attorney General Dampens Bitcoin ETF Hopes appeared first on Bitcoinist.com.