Creating money out of thin ether. SPV exploit spreading in Ethereum Network
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What’s more, miners can offer something unique: brand-new,
“virgin” coins, which some investors covet. Such coins
command a premium of up to 20 percent, according to
Travis Kling, founder of the hedge fund Ikigai. It’s
easier to prove they’ve not been involved in money-
laundering operations, he said
Ironic, because that's actually the defacto method for laundering money in Bitcoin land Claiming that we will not be able to solve the routing
problem on the lightning network is exactly the same as
claiming that we won't be able to solve the routing
problem on the Internet. Routing is a solved problem,
but is a difficult problem to implement, which is why
the clients are in BETA.
You clearly don't understand the architectural differences between how the internet routes packets, and what how the Lightening Network claims to be a decentralized routing protocol. Nodes in a decentralized network have no visibility to peers unless there's a map, the map needs to be updated, and in a payment network the complexity increases as nodes and activity increases. LN will not function for p2p decentralization, it is a design choice that creates Bitcoin banks and Bitcoin payment processors. Sealioning (also spelled sea-lioning and sea lioning) is a
type of trolling or harassment which consists of
pursuing people with persistent requests for evidence or
repeated questions, while maintaining a pretense of
civility. The troll pretends ignorance and
feigns politeness, so that if the target is provoked
into making an angry response, the troll can then act as
the aggrieved party.
You're asking for a source when the flaw has clearly been spelled out for you. >A whole world currency that is potentially immune to
inflation and government manipulation.
But completely exposed to private manipulation - malicious coders inserting backdoors into wallets which allow theft of users funds, weak private keys that are later regenerated by the dev, and so on. Protections for Customer Funds Are Often Limited or
Illusory. Generally accepted methods for auditing
virtual assets do not exist, and trading platforms lack
a consistent and transparent approach to independently
auditing the virtual currency purportedly in their
possession; several do not claim to do any independent
auditing of their virtual currency holdings at all. That
makes it difficult or impossible to confirm whether
platforms are responsibly holding their customers’
virtual assets as claimed.
https://virtualmarkets.ag.ny.gov/ Bitcoin inflation rate per annum: 3.87%
USD Current inflation rate for the United States is
2.7%. The obvious worst part of this bug was the inflation
exploit. An attack could create new bitcoins at will,
exceeding the 21 million hard cap limit that is
currently in place. This would absolutely destroy
confidence in not only Bitcoin, but every
cryptocurrency.
In addition, a miner could crash every single node they
are connected to by producing a block with an invalid
transaction in it. Miners are will go out of their way
to connect to as many other mining nodes as possible, so
they receive notifications of blocks faster.
Imagine you’re a miner, hashing away at block #1000.
Another miner, Jim, finds block #1001 and starts
propagating it around the network. However, you’re not
connected to Jim, so it takes an extra few seconds for
you to receive the block. During those few seconds, the
network has moved on and you’re wasting hashpower and in
turn money. You need to receive the new block before you
get started on the next one.
All the miners are highly connected, so if one is
producing client-crashing blocks, many of the larger
miners would be hit.
Quite a concerning catastrophe that has no guarantee of being avoided in the future, as any programer knows how many bugs can hide or be exploited in any code base. Bitcoin inflation rate per annum: 3.87%
USD Current inflation rate for the United States is 2.7%.
Early in Bitcoin history, by design Bitcoin went though a period of hyperinflation where Satoshi and a few users acquired most of the coins in circulation.
Aprox 4.11% of Bitcoin users (addresses) control 96.53% of all bitcoins in circulation. Sending payments using the Lightning Network is cheaper
than the regular Bitcoin network, but suffers from
routing errors and wallet bugs that make it impractical
even for highly technical users. [1]
[1] https://medium.com/andreas-tries-blockchain/bitcoin-lightnin...
Investors, especially large institutions will have teams of lawyers who would would have paperwork from the party they purchase from vetting the purchase. Their insurance is the law and an ability to hold the seller responsible for loss in any case where that risk might exist.
No one pays 20% markup on a car, or gold, or a diamond ring under normal circumstances.
Washing illicit money though paying miners for their new Bitcoins is an established method for money laundering.