bZx Changes Its Dev Framework After Hack; Integrates Chainlink Decentralized Oracles

bZx exchange releases changes to its platform in light of the recent double attacks on Valentine’s Day. In an announcement released on Tuesday, the co-founder and CEO of the exchange, Kyle Kistner, further apologized for the $2.5 million hack on caused by a bug on its Fulcrum platform.

In a bid to prevent future troubles on the platform, the bZx dev team is reworking its oracle design, development framework, and review processes for new code.

bZx exchange loses over $2.5 million in hacks

In a widely covered bZx exchange double hack on Feb. 14, a user exploited a bug on the system and made away with $365,000 USD in ETH leading to widespread panic. Less than 72 hours later the platform experienced yet another exploitation of over $645,000 USD in ETH too.

While the first hack was an exploitation of the smart contract code, the second hack originated from a bug in the oracle system. In order to prevent this in the future, the exchange is adopting new oracle designs by integrating decentralized oracle, Chainlink to its system. [Not the first time bZx has partnered with Chainlink]

The company is currently planning on integrating Band and Uniswap v2.0 oracles to its platform in the future.

“Chainlink’s Price Reference Data Contracts are decentralized oracle networks made up of multiple independent, security reviewed, and Sybil resistant node operators.”

Furthermore, the exchange released a newly refactored code that will be implemented once economically audited to prevent such cases of exploitation.

“We will transition to an EIP-like system for cataloging new features and improvements to the protocol. This will make the process of how new code gets added completely visible to the public. Features should not be added as a surprise or at the last moment.”

He further added,

“We will never again publish unaudited code, no matter how few lines or trivial.”

bZx to pay for the losses

All the losses during the hack will be absorbed by the bZx exchange and protocol stakeholders. Currently, the company is working towards directing the profits towards the insurance fund to be able to repay the debt owed on the platform. The post reads,

“Given the current value of the insurance fund and its annualized rate of growth, it should be more than able to cover the loss at the time it needs to be realized in the year 2285 AD.”

Kristner apologizes for bounty reward

About three weeks before the two successive exploitations, came forward complaining that they found over $2.5 million from a vulnerability on the Fulcrum exchange. However, bZx never paid the devs their bounty fee or communicated the issue to the users.

Kristner came forward on his blog post to apologize for the time wasted in paying the bounty. He remarked,

“Rather than simply pay the full bug bounty immediately, with extreme gratitude for finding such a serious exploit, we tried negotiating. This was a serious mistake that we need to take responsibility for. Under no circumstances should this have happened, and we sincerely apologize.”

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Author: Lujan Odera

French Finance Minister: Libra Will Take Away State’s Power To Control Currency

French Economy and finance minister Bruno Le Maire attacks Libra again this time claiming that Facebook’s led stablecoin will intrude on one of the most important national government mandates, issuance of currency.

In an op-ed to Financial Times, Le Maire stated if Libra was allowed to take off it will take away the sovereign power of states to issue and control their own currencies which will have unprecedented repercussions to the world’s economy and financial system.

Le Maire’s opinions are similar to his German counterpart, Olaf Scholz who has maintained that Libra should not be allowed in Europe as it will infringe on the sovereignty of the countries.

Le Maire stated that he can’t imagine one of the most powerful tools of a state, monetary control, and policy, being taken over by private companies that are not subjected to any democratic control.

The finance minister explained that after the creation of the euro in 1999, the EU member states gave up some aspects of their sovereignty to a more powerful European project. He pondered whether states are ready to allow Facebook together with other members of the Libra Association to provide private currency and undermine the effort made by EU member states.

Le Maire reiterated his sentiments in a tweet claiming that sovereignty, both political and monetary, can never be shared with private companies.

France has been one of the harshest critics of Libra which is facing intense pressure from policymakers around the globe. Politicians and regulators have been raising concerns with the Libra project fearing that Facebook will have immense power on money issues around the world.

In the past, Le Maire has categorically stated that France will never allow Libra to operate in the country as it is a threat to the EU’s financial systems among other risks.

According to CoinDesk, Le Maire, the EU needs to move faster and come up with innovative cross border payment systems as well as central bank-issued digital money to counter Libra’s threat. He explained that China should not be left to be the only player in the market on the issue.

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Author: Joseph Kibe

PIVX And 200 Other Proof of Stake Blockchains May Be Vulnerable, Lunar Digital Assets Affirms

It seems that PIVX, a popular private transactions crypto, may be vulnerable to attacks together with 200 other chains. According to a recent report made by Lunar Digital Assets, there is a vulnerability of the system that can be currently exploited. Every chain using PIVX or its variants is possible to be attacked this way.

Basically, the attacker could exploit this specific vulnerability in order to get impossibly high staking rewards using the proof of stake system of the network.

This is not the first that this vulnerability is exploited. As soon as the PIVX devs found out about it, they rushed to fix the issue. However, another developer, BitGreen, has noticed that the problem was being exploited once more. Someone has probably figured how to undo the progress made by the team and started to use the exploit.

As soon as the developers discovered it, they notified all related companies of the bug and now PIVX is working once more to solve it and stop the attacks.

People Are Accusing the PIVX Team

The situation got heated recently after some people started to claim that the PIVX team might be behind the attacks. According to critics, the team knew of the bug and did nothing about it or failed to fix it properly.

Some others criticized the team for not having a timely response for the problem and simply standing still while the problem was still out there. This led some critics to theorize whether people from the company were exploiting the bug for money and used this inside source in a malicious way.

At the moment, the PIVX team has not explained publicly why the problem was not fixed months ago.

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Author: Bitcoin Exchange Guide News Team

Ripple’s David Schwartz Attacks Bitcoin And Defends XRP From Negative Comments

Ripple's David Schwartz Attacks Bitcoin And Defends XRP From Negative Comments
  • Ripple’s Chief Cryptographer, David Schwartz defends XRP from attacks from Bitcoin users.
  • XRP could be affected by the growth of new permissioned networks and blockchains.

Schwartz Answers Back To Max Keiser

David Schwartz, the Chief Technology Officer (CTO) of Ripple, has defended XRP from negative comments that it receives from the community. In a recent article released by Yahoo, the author quoted the Bitcoin supporter Max Keiser saying that XRP should be worried about the upcoming launch of Facebook’s GlobalCoin.

There are several Bitcoin (BTC) enthusiasts that believe that XRP is the digital currency used by banks and that it does not follow the ethos of the crypto space. Max Keiser wrote on Twitter that Facebook’s stablecoin is going to harm other digital currencies such as XRP, among other altcoins.

Is Ripple A Permissioned System?

About it, Schwartz said that he likes to see opinions about XRP that do not show any evidence of understanding how XRP works. He said that this is just how Bitcoin “minimalist thinking” works.

Schwartz has also talked with other individuals on the popular social media network, including the Twitter user Noryn Syra. The crypto enthusiast wanted Schwartz to admit that Ripple was a permissioned system such as the one that other companies have.

Ripple is currently working in order to provide services to different financial companies, including banks. The goal is to offer them cheaper and fast cross-border payments in a compliant way. At the moment, they have signed partnerships with a large number of companies from all over the world.

There are some companies like Facebook that have a large user base and that are working with blockchain technology. Indeed, Facebook wants to launch a digital currency called GlobalCoin that is expected to help users make cheap cross-border payments and other payments. If that initiative expands, Ripple could be damaged.

Currently, XRP is the third largest virtual currency after Ethereum (ETH) and Bitcoin (BTC). At the time of writing, XRP has a price of $0.42 and a market capitalization of $17.72 billion.

Latest Ripple News and XRP Market Updates

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Author: Carl T