Bitcoin Pizza Day Celebrates its 10th Anniversary; 10,000 BTC for Two Pizzas is Now Worth $90M

May 22 is known as the Bitcoin Pizza Day after computer programmer Laszlo Hanyecz paid 10,000 bitcoins for two delivered Papa John’s pizzas in 2010.

Being one of the earliest well-known purchases in the history of Bitcoin makes it an iconic day. Those 10,000 BTC that has been offered for two large pizzas worth $40 is now worth about $90 million.

Hanyecz organized his pizza offer on bitcointalk forum,

“You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!”

In his first television interview with CBS News last year, Hanyecz shared,

“I honestly thought it would be really cool if I could say, ‘Hey, I just traded this, you know, open source internet money for a real world good.”

But Hanyecz didn’t stop after the first real-word transaction that involved cryptocurrency, he continued spending Bitcoin.

He minted and spent about 100,000 BTC in all, which would have been now worth more than $900 million, much of it on pizza, Hanyecz shared on “60 Minutes.”

2nd post by Hanyecz for another “open offer.” He also got the pizza on May 22nd.

Despite the price of bitcoin skyrocketing, Hanyecz isn’t really phased out about his deal as he told the NY Times in 2014,

“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool. No one knew it was going to get so big.”

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Author: AnTy

Serious Bitcoin Lightning Network Security Vulnerability Has Finally Been Fixed

On August 30, software programmer Rusty Russell announced that he had found a major security vulnerability in various lightning projects that could have allowed attackers to strip users off their money.

On Friday, he published all the details of the threat here.

Bitcoin’s Lightning Network adds a second layer to Bitcoin’s blockchain which creates a payment channel between two parties. It allows instant payments at almost zero fee so much so that a person can pay using bitcoin even for the smallest of purchases.

In the disclosure, Rusty outlined in detail the issue he had brought to light. The vulnerability was found in the process of creating and funding the lightning channel. The receiver of the channel could have gone without verifying the amount of the funding transaction or checking the conditions that are needed to be met before a transaction takes place. Exploiting this, an attacker could have claimed to open a channel without paying the peer or paying only a part of the full amount, enabling him to spend the funds in a channel created with a victim.

In his disclosure Rusty wrote,

”The victim will only notice when it tries to close the channel and none of the commitment or mutual close transactions it has are valid.”

Though there were some claims that surfaced in mid-September of the vulnerability being exploited, the size of the exploit has not been revealed.

The upgrades that have come about since have addressed this bug. As per Rusty, all the major lightning software clients have been upgraded. As per a lightning developer, the vulnerability was not revealed till everyone was sure the users were no more at risk.

Just goes to show that with any code-based payment method, bitcoin is susceptible to long-standing code vulnerabilities too and it is important to see how such issues are handled to protect the users.

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Author: Sritanshu Sinha

Lightning Network Software Coder Warns Users About Vulnerabilities Found on BTC’s LN

Rusty Russell, an Australian programmer that is focused on the Bitcoin Lightning Network, has recently affirmed that the community should know that some issues have been found in the code of the LN.

According to him, several Lightning projects could be the victim of major problems if they did not update their code. He affirmed that he found several issues in versions prior to the 0.7.1 one. The issue was started in version 0.3 and continued until it was patched out in the 0.7.1 version.

The 0.7.2 version of the LN has just been launched by Blockstream recently, but this does not mean that everybody has already updated, so problems could appear.

Despite the warning that the code could have been compromised and that bugs would possibly be found within the network, Russell did not explain specifically which problems could happen and what exactly was the exploit that he found.

He only affirmed that all the details about the issue would come in 4 weeks and that everybody should upgrade before then. It was a smart actually a quite common decision. Revealing the details could expose the network to hackers and bad actors, so it is best to wait until everybody has upgraded their systems before revealing the possible issues to the world.

The LN, in case you are not aware of this, is a second layer solution that was created last year to turn the Bitcoin network into a much more effective payment method. The idea was to offer payments that could be cheap and fast.

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Author: Lillian Peter