Posted on

Dash Introduces Three Improvement Proposals Ahead of Masternode Lists

The peer-to-peer cryptocurrency that focuses on the payments industry tagged “Digital Cash You Can Spend Anywhere” is taking lead with the introduction of three main improvements while it is yet to release the Deterministic Masternode Lists.

The three proposed improvements according to a post it released on its medium page includes;

DIP2 — Special Transactions

DIP3 — Deterministic Masternode Lists

DIP4 — Simplified Verification of Deterministic Masternode Lists

The release stated that DIP2, DIP3, DIP4, which are major instalments would be implemented and deployed following the release of the 12.3: Deterministic Masternode Lists.

While DIP2 & DIP3 will be used to “introduce new transaction structures” and other types which grant network the ability “to register and update masternodes on-chain,” DIP4 introduces a technique for “SPV clients to retrieve and verify the full masternode list”.

Deterministic Masternode Lists

The Deterministic masternode lists is a new system proposed by DASH development team to enhance operations. They are masternode lists that are derived completely from on-chain data.

The masternode lists is designed in such a way that if implemented, it will surely have effects on masternode owners and operators.

Benefit Of The Deterministic Masternodes System

While the previous technique known as MNO limits owners and operators from getting masternode rewards, and the problem of updating masternode, in the new system, masternode creation is done “by sending a special transaction (ProRegTx) to the network”. This makes the mining of transactions easy, and masternode will be added to the masternode list. Therefore, transactions (ProUpRegTx, ProUpServTx) can be used to update the metadata of the masternode.

Implementation And Deployment Of The Deterministic Masternodes System.

The Core developers at DASH Foundation are working really hard to make sure the implementation of the new system will be timely initiated as it is already underway. The developers, according to the release, have tested and implemented DIP2, DIP3 and DIP4 for operation and the functionality seems to be “running in a stable state in one of our devnets”.

While the introduction of the new system into Dash ecosystem requires the restructuring of many things and multi-stage deployment, the developers aired that the deployment details will be disclosed in a subsequent blog post.

For now, DASH may not be a household name in the Cryptocurrency world, but the altcoin is aiming to be more formidable than expected in the industry with sundry of developments.

Posted on

Hacker Returns $26 Million in Ether Months After ICO Theft

A hacker who stole more than 43,000 ether tokens from would-be investors in CoinDash has returned a majority of the funds to the startup.

The company reported that the thief returned 30,000 tokens over two different transactions, the first in September 2017 and the second last Friday, to CoinDash’s wallet. At press time, the tokens were worth a little more than $26 million.

The thief still has some 13,400 tokens ($11.6 million) after the second transaction.

The hack was first reported in mid-July 2017, when the hacker managed to compromise CoinDash’s fundraising site, swapping its ethereum address with another one. Users believed they were purchasing tokens and supporting the project, but more than 2,000 of them actually funded the hacker, as previously reported by CoinDesk.

At the time, the stolen ether tokens were worth roughly $10.3 million.

Investors who unwittingly donated to the hacker still received CoinDash’s CDT token, though anyone who donated after the project’s website was shut down did not. At least one user reportedly sent 50 ethers to the compromised address after it was shut down.

Despite the theft of its funds last year, CoinDash intends to launch its first product on Feb. 27, according to its website. This product will be a social trading platform, which CoinDash states will be integrated with several cryptocurrency exchanges, including Poloniex, Bittrex and Binance.

Business miniatures image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Posted on

Hacks, Scams and Attacks: Blockchain's Biggest 2017 Disasters

Hard forks? Soft forks? ICOs?

Bombarded by no shortage of unfamiliar technical terms in 2017, consumers in the blockchain sector once again proved a ripe target for hackers and criminals. But, not all hacks and scams were created equal. Some rose above the froth – either due to their size or impact – as well as what they said about the state of blockchain technology and the industry itself.

Still, the impacts of these incidents were far from academic. Whether it was a simple wallet hack, fraudulent ICO or a bug in a piece of software code, investors lost millions, with nearly $490 million taken in the incidents below.

So far, none of the perpetrators of these crimes has been caught or even identified, and it’s questionable whether most of these funds can be found or returned.

1. CoinDash ICO Hack

Payment and shipment startup CoinDash launched an initial coin offering (ICO) campaign early this summer, but it quickly had to pump the brakes after its ethereum address was compromised.

The startup raised $7.3 million before a hacker changed the address, causing donations to go to an unknown party. The company shut down the ICO, but promised to send its native token award, CDT, to those who attempted to donate.

While the company stated that donations sent after it had released its statement would not be honored, some investors continued to show support by donating to the hacked address, inadvertently raising the amount of stolen funds from $7 million to $10 million at the time.

All in all, the incident showcases the growing pains experienced by ICOs, which despite raising massive amounts of funds, still had to navigate the complexities of an early-stage technology.

2. Parity Wallet Breach

It was a tough year for cryptocurrency wallet provider Parity, which has the rare distinction of being cited twice on our year-end list.

Issues began in July when the U.K.-based startup discovered a vulnerability in version 1.5 of its software, resulting in at least 150,000 ethers being stolen from user accounts.

The bug was found in its multi-signature wallets, compromising several companies’ ICO fundraisers. At the time, the ethers were worth roughly $30 million, but are worth closer to $105 million as of mid-December.

The issue was deemed “critical,” with the company’s CTO, Gavin Wood, announcing at least three compromised addresses and saying efforts were being made to prevent further loss of funds.

It was later found that more than 70,000 ethers were already cashed out or otherwise redeemed in some way, ensuring that their loss was permanent.

3. Enigma Project Scam

Back in ICO-land, issues weren’t limited to compromised addresses.

Blockchain startup Enigma saw its website, mailing lists and an administrator account on its Slack channel compromised when fraudsters launched a fake token pre-sale in August, defrauding potential investors of more than 1,500 ethers.

The hijacked accounts promised a large return on investment, and masquerading as the genuine operators of the project, those behind the effort were able to convince unsuspecting consumers to donate to the compromised website.

While the team behind Enigma was able to recover control of the company’s accounts, the ether wallet used by the hacker was emptied, and the funds were not recovered.

4. Parity Wallet Freeze

Perhaps the year’s biggest security incident, this entry on the list is also distinguished by being one the few to take place without the apparent aid of a malicious party.

Occurring suddenly this November, a Parity user accidentally found a bug in the software code, freezing more than $275 million in ether in the wallet’s second major incident of 2017.

But, one of two widely used clients for ethereum, the miscue effectively called into question what was and is a central infrastructure component of the network, prompting some to doubt the company’s offerings and renewing criticisms of ethereum itself.

In subsequent updates, developers have pushed to restore the funds, though it’s now believed that doing so would require all ethereum users to upgrade their software.

5. Tether Token Hack

In another incident notable for its unresolved controversies, more than $30 million was stolen from the cryptocurrency proxy marketplace Tether in late November.

At the time, Tether claimed that roughly $31 million’ worth of tokens were taken from their virtual treasury and sent to an unknown bitcoin address.

Not a significant number in the cryptocurrency economy, the hack was more relevant as it effectively renewed long-standing criticisms of Tether the company, prompting scrutiny in the form of blog posts and mainstream news exposes.

The company later moved to blacklist the tokens stolen through an update to the Omni protocol, the blockchain on which it is based. Still, the company continues to be dogged by allegations in which the incident played no small part.

6. Bitcoin Gold Scam

Think forks were confusing? So did scammers, and those seeking to cash out bonus tokens awarded in blockchain splits often proved all too easy to target.

Shortly after the launch of a bitcoin fork called bitcoin gold, for example, some users had their cryptocurrency wallets drained after using a service seemingly endorsed by the project’s development team.

Marketed as a way to authenticate whether a user was eligible for the funds (effectively free money), the website’s operators instead stole more than $3 million in bitcoin, bitcoin gold, ethereum and litecoin.

Bitcoin gold’s development team claimed no formal relationship with the website’s developer, arguing he reached out offering to build a wallet checking service and offering to make his code open-source. The site’s developer initially claimed the site was hacked, but later wiped his GitHub and ceased responding to users on the fork’s Slack channel.

All in all, however, it was another case of consumers falling into traps over promises of free funds.

7. NiceHash Market Breach

That’s not to say that long-standing companies were spared by the year’s attacks.

This was the case when cryptocurrency mining marketplace NiceHash, a well-known marketplace for mining power, reported being hacked early in December, later confirming that about 4,700 in bitcoin was stolen. At the time, that was worth approximately $78 million.

An employee’s computer was compromised, allowing the perpetrator to gain access to the marketplace’s systems and remove bitcoin from the company’s accounts.

NiceHash CEO Marko Kobal later announced that his team was trying to determine how the hack occurred, but that it would take time to establish what happened.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Enigma.

Various images courtesy Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at news@coindesk.com.

Posted on

ICO Hacker Returns 10,000 ETH With no Issue – CoinDash Project

The project in which a new type of a trading platform would be formed which was made public as an ICO by CoinDash did attract a major approach by traders and investors. However the Initial Coin Offering was attacked by a Hacker, stealing 10,000 ETH token. Making simple calculation losing that much money would be a hinder for the project itself but the ‘goods’ were returned with no demands.

The digital currency industry and community is hit by hacking, scams incidents very often as the hackers take the money and never return them to the owner despite the difficulty that sometimes attackers might find to convert the money from stolen to ready-to-use.

As the market is very transparent, everybody from traders to crypto-enthusiasts can follow transactions or ICOs in this case, as the 10,000 ETH were stolen and the theft was tracked to a fake address. Nobody did expect the outcome as the funds were returned without being converted nor used.

The value of around $3 million US Dollars worth in Ether was returned to one of Coindash’s Ethereum wallets. On top of that as the detail are showing that there was no inclusion of any white hat hacker to recover the money in the first place.

Using ShapeShift 488 ETH were converted some time ago and the remaining ETH (10k) were returned and sent to CD. As there are no reasons why a hackers should do the attack and after some while just give back the funds many debate the “hack” in the first place. However there is a transaction ID for anybody to see.

Transforming the stolen money to ready-to-use money as mentioned above is not easy as just converting that much of a sum and just get away is no ‘childs-game’. As currency (virtual) exchanges perform the Know Your Costumer verification (KYC) makes it possibly to link the identity of a theft to the transaction being made such as in this case. There is risky obviously, but just returning the money with no explanation or anything is not so convincing too.

Well, in result CoinDash did evade a major crippling to its project with a loss of such an amount. With the team continuing normally to work on the project and it remains to see if everything will go successfully as they plan.

Read Also:


– For more Cryptocurrency market related Updates and News Follow us on our Facebook and Twitter pages.