Nostr Web Client

Our 2nd essay in the Bitcoin Only Series is now posted on nostr:nprofile1qqsylf6lrwexnfkpucq7jcjmkv97azgga9t2czgjfx4v4v7axuytskgpzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqgjwaehxw309ac82unsd3jhqct89ejhxqgdwaehxw309ahx7uewd3hkcg3wruf, where we talk about the technical issues facing crypto, particularly how altcoins sacrifice decentralization, security, and immutability for technical "improvements". Read it here:

https://bitcoinmajlis.org/bitcoin-only-series-2-4-technical-issues-of-crypto/

Muslim Bitcoiner 10mo ago

It's almost too perfect. An Ethereum smart contract exploit at an exchange occurred just three days after we highlighted technical flaws in crypto in our essay on the nostr:nprofile1qqsylf6lrwexnfkpucq7jcjmkv97azgga9t2czgjfx4v4v7axuytskgpzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqgjwaehxw309ac82unsd3jhqct89ejhxqgdwaehxw309ahx7uewd3hkcg3wruf blog.

When you design a digital monetary system to do more than just act as money, like implementing smart contracts on the base layer, you inherently compromise on security and decentralization by default.

We explored this in our essay. Check it out 👇

nostr:nevent1qqsdkgpzx2yn60d8n2g2h8qw20scf68u5llr54seyhqnwmts6h7cghgpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg8qjgwkzrhx25uke7kxexg8k6k3ruapmhjhwqpfuy5yum9wplnm65psgqqqqqqscczedq

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Discussion

ishaq 10mo ago

Which smart contract was it this time, care to share a link?

BitcoinMajlis 10mo ago

It was an Ethereum multisig smart contract.

In Bitcoin, multisig is simple and straightforward, easy to verify on a hardware wallet.

In Ethereum however, the simplest of smart contracts, even for a simple multisig set up, are harder to verify on a hardware wallet, creating more opportunities for such vulnerabilities.

Here is an article with more details about the hack:

https://www.ledgerinsights.com/bybit-hack-phishing-involved-plus-how-to-prevent-similar-hacks/

ishaq 10mo ago

Yeah I figured it was Bybit, and surprised to learn that issue was in a Safe contract (Safe was considered standard multisig contract), am looking in to it deeper today.

ishaq 10mo ago

The issue wasn't in the smart contract, it was a compromised dev machine. Something like this can happen to any cryptocurrency, we have seen such compromises causing issues on Bitcoin too.

Ethereim smart contracts have many issues, but this incident wasn't a case of smart contract vulnerability.

Ethereum and Bitcoin both share the same elliptic curve (secp256k1) so the cost of signing is the same. The issue with multisig is lack of standization. If there were one dominant standard, the hardware wallet could do it.

What hardware wallets support multisig on Bitcoin?