New Lightning: MIT Introduces Spider Routing Scheme to Accelerate Cryptocurrency Transactions
Researchers at the Massachusetts Institute of Technology (MIT) “improved” the Lightning Network by creating a blockchain-based transaction routing network model called Spider.
According to the developers of MIT, the solution is a “network of payment channels” (PCN), which can reduce the time spent on transactions on the blockchain and even make a profit. Its architecture has significant similarities with the Lightning Network, a payment network already operating in Bitcoin and several other public blockchains.
Experts explained that transactions will be carried out with minimal participation of the blockchain. PCN users will create an escrow account outside the blockchain, thereby forming an integrated network of joint accounts. Then, payments will be made through these accounts, and information will be recorded on the blockchain only for creating and closing accounts, which will greatly accelerate transactions. Accounts may also charge a small fee if transactions are routed through them.
In traditional schemes, transactions are made in the shortest way, however, this does not take into account the user's balance, and if, when processing a large number of transactions, the balance on the joint account becomes zero, this will lead to a delay or failure of the operation. The Spider scheme offers a more efficient way to route cryptocurrency payments. It is about dividing transactions into parts that are transmitted through channels with different bandwidths. The developers are confident that such a scheme will work much more efficiently unlike other networks in which the payment is rejected if the payment channel cannot transfer a large payment.
In addition, if the account in Spider cannot process the incoming transaction, it is not rejected, but queued until this account recovers the balance of coins as a result of another transaction. At the same time, a special algorithm will check the workload of nodes to detect delays in such queues, which will allow less often to direct a transaction through a busy route. In the near future, the developers plan to increase the efficiency of the Spider solution for conducting transactions based on DAG and eliminate possible problems related to privacy.
Researchers at the Massachusetts Institute of Technology (MIT) “improved” the Lightning Network by creating a blockchain-based transaction routing network model called Spider.
According to the developers of MIT, the solution is a “network of payment channels” (PCN), which can reduce the time spent on transactions on the blockchain and even make a profit. Its architecture has significant similarities with the Lightning Network, a payment network already operating in Bitcoin and several other public blockchains.
Experts explained that transactions will be carried out with minimal participation of the blockchain. PCN users will create an escrow account outside the blockchain, thereby forming an integrated network of joint accounts. Then, payments will be made through these accounts, and information will be recorded on the blockchain only for creating and closing accounts, which will greatly accelerate transactions. Accounts may also charge a small fee if transactions are routed through them.
In traditional schemes, transactions are made in the shortest way, however, this does not take into account the user's balance, and if, when processing a large number of transactions, the balance on the joint account becomes zero, this will lead to a delay or failure of the operation. The Spider scheme offers a more efficient way to route cryptocurrency payments. It is about dividing transactions into parts that are transmitted through channels with different bandwidths. The developers are confident that such a scheme will work much more efficiently unlike other networks in which the payment is rejected if the payment channel cannot transfer a large payment.
In addition, if the account in Spider cannot process the incoming transaction, it is not rejected, but queued until this account recovers the balance of coins as a result of another transaction. At the same time, a special algorithm will check the workload of nodes to detect delays in such queues, which will allow less often to direct a transaction through a busy route. In the near future, the developers plan to increase the efficiency of the Spider solution for conducting transactions based on DAG and eliminate possible problems related to privacy.
Iota Trinity wallet users ' funds stolen due to a vulnerability in the app
The IOTA team is investigating reports of a possible vulnerability in its Trinity wallet that resulted in the theft of 10 users ' funds. At the moment, transactions in the network are temporarily suspended.
The iota blockchain project was attacked or maliciously exploited by a vulnerability in the Trinity Wallet app. IOTA said it began receiving reports of stolen funds from users on Wednesday and decided to disable the coordinator node on the network for further investigation. The developers recommend that users do not launch the Trinity app until further notice.
The IOTA Foundation is investigating the issue in an earlier version of its wallet. The developers are also trying to analyze the pattern of hacker attacks and perform manual verification. According to the IOTA statement, " the first (but not all) exchanges responded to the request and reported that the tracked funds were not transferred or cashed."
"Most of the evidence points to the theft of "SIDS", the cause of which is still unknown and is being studied by developers, " said the IOTA Foundation. "It seems that all the victims (about 10 people who have contacted the IOTA Foundation at the moment) have recently used Trinity."
On Twitter, IOTA said it was working with law enforcement and cybersecurity experts to investigate a coordinated attack that resulted in funds being stolen. The company does not disclose the total amount of stolen funds, but Twitter user 00xou reports that about $ 1.6 million was stolen from 10 users. He also notes that the problem most likely occurred in the desktop version of the wallet.
The last update of the iota investigation status was made on February 13 at 23.45. The message reads:
"We are still investigating many possible root causes, including the exploit of the previous version of Trinity with all its dependent objects. We are working on studying the attacked "SIDS" and analyzed the attack pattern using a set of newly created tools, as well as completed a full manual check. Due to the ongoing investigation, we will continue to stop transactions of funds in the network. Please note that data transfer is not affected by this restriction."
Recall that in December, iota developers reported that a crash that suspended the main network was fixed, as well as the release of an updated version of the client for full IRI V1.8.3 nodes.
The IOTA team is investigating reports of a possible vulnerability in its Trinity wallet that resulted in the theft of 10 users ' funds. At the moment, transactions in the network are temporarily suspended.
The iota blockchain project was attacked or maliciously exploited by a vulnerability in the Trinity Wallet app. IOTA said it began receiving reports of stolen funds from users on Wednesday and decided to disable the coordinator node on the network for further investigation. The developers recommend that users do not launch the Trinity app until further notice.
The IOTA Foundation is investigating the issue in an earlier version of its wallet. The developers are also trying to analyze the pattern of hacker attacks and perform manual verification. According to the IOTA statement, " the first (but not all) exchanges responded to the request and reported that the tracked funds were not transferred or cashed."
"Most of the evidence points to the theft of "SIDS", the cause of which is still unknown and is being studied by developers, " said the IOTA Foundation. "It seems that all the victims (about 10 people who have contacted the IOTA Foundation at the moment) have recently used Trinity."
On Twitter, IOTA said it was working with law enforcement and cybersecurity experts to investigate a coordinated attack that resulted in funds being stolen. The company does not disclose the total amount of stolen funds, but Twitter user 00xou reports that about $ 1.6 million was stolen from 10 users. He also notes that the problem most likely occurred in the desktop version of the wallet.
The last update of the iota investigation status was made on February 13 at 23.45. The message reads:
"We are still investigating many possible root causes, including the exploit of the previous version of Trinity with all its dependent objects. We are working on studying the attacked "SIDS" and analyzed the attack pattern using a set of newly created tools, as well as completed a full manual check. Due to the ongoing investigation, we will continue to stop transactions of funds in the network. Please note that data transfer is not affected by this restriction."
Recall that in December, iota developers reported that a crash that suspended the main network was fixed, as well as the release of an updated version of the client for full IRI V1.8.3 nodes.
The Libra Association is considering changing the security of the coin in favor of the dollar
The Libra Association consortium is exploring the possibility of providing Libra's stablecoin with US dollars, rather than a basket of currencies, as originally planned. This is reported by the Block, citing its own sources.
The organization believes that changing the model will help to dispel the concerns of American regulators about the Facebook digital coin.
The project of the social network for the release of stablecoin has faced close attention from regulators, lawmakers and authorities.
At hearings before the Senate Banking Committee and the house financial services Committee, David Marcus, who represented the Calibra initiative, was unable to answer all the questions convincingly, and avoided some of them.
American lawmakers see Libra as a threat to the dollar, and consider it possible to qualify the coin as a security with appropriate regulation.
Kristin Smith, head of the blockchain Association, a lobbying firm, believes that the model change being discussed could change the situation.
"I think the main concern of lawmakers about Libra is that it will undermine the position of the us dollar. Therefore, if they switch to a stable coin based on it, it will solve many problems, " she said.
In Europe, the Facebook project also met with a negative reaction from the authorities. France and Germany have explicitly stated that they will block the development of Libra in the European Union. With the participation of Italy, Spain and the Netherlands, these countries formed a coalition of States that intend to oppose the Facebook project.
Even in cryptocurrency-friendly Switzerland, additional regulation has been introduced for stable coins due to social network plans.
Therefore, according to media reports, Libra Association representatives are negotiating with politicians in Europe to issue several stablecoins, each of which will be backed by one of the Fiat currencies, including the Euro.
The Libra Association consortium is exploring the possibility of providing Libra's stablecoin with US dollars, rather than a basket of currencies, as originally planned. This is reported by the Block, citing its own sources.
The organization believes that changing the model will help to dispel the concerns of American regulators about the Facebook digital coin.
The project of the social network for the release of stablecoin has faced close attention from regulators, lawmakers and authorities.
At hearings before the Senate Banking Committee and the house financial services Committee, David Marcus, who represented the Calibra initiative, was unable to answer all the questions convincingly, and avoided some of them.
American lawmakers see Libra as a threat to the dollar, and consider it possible to qualify the coin as a security with appropriate regulation.
Kristin Smith, head of the blockchain Association, a lobbying firm, believes that the model change being discussed could change the situation.
"I think the main concern of lawmakers about Libra is that it will undermine the position of the us dollar. Therefore, if they switch to a stable coin based on it, it will solve many problems, " she said.
In Europe, the Facebook project also met with a negative reaction from the authorities. France and Germany have explicitly stated that they will block the development of Libra in the European Union. With the participation of Italy, Spain and the Netherlands, these countries formed a coalition of States that intend to oppose the Facebook project.
Even in cryptocurrency-friendly Switzerland, additional regulation has been introduced for stable coins due to social network plans.
Therefore, according to media reports, Libra Association representatives are negotiating with politicians in Europe to issue several stablecoins, each of which will be backed by one of the Fiat currencies, including the Euro.