Economy
Related: About this forum'$300m in cryptocurrency' accidentally lost forever due to bug
Source: The Guardian
User mistakenly takes control of hundreds of wallets containing cryptocurrency Ether, destroying them in a panic while trying to give them back
Alex Hern
Wednesday 8 November 2017 11.29 GMT
More than $300m of cryptocurrency has been lost after a series of bugs in a popular digital wallet service led one curious developer to accidentally take control of and then lock up the funds, according to reports.
Unlike most cryptocurrency hacks, however, the money wasnt deliberately taken: it was effectively destroyed by accident. The lost money was in the form of Ether, the tradable currency that fuels the Ethereum distributed app platform, and was kept in digital multi-signature wallets built by a developer called Parity. These wallets require more than one user to enter their key before funds can be transferred.
On Tuesday Parity revealed that, while fixing a bug that let hackers steal $32m out of few multi-signature wallets, it had inadvertently left a second flaw in its systems that allowed one user to become the sole owner of every single multi-signature wallet.
The user, devops199, triggered the flaw apparently by accident. When they realised what they had done, they attempted to undo the damage by deleting the code which had transferred ownership of the funds. Rather than returning the money, however, that simply locked all the funds in those multisignature wallets permanently, with no way to access them.
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Effectively, a user accidentally stole hundreds of wallets simultaneously, and then set them on fire in a panic while trying to give them back.
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Read more: https://www.theguardian.com/technology/2017/nov/08/cryptocurrency-300m-dollars-stolen-bug-ether
lapfog_1
(29,243 posts)this is like saying the US Mint, in burning old US currency bills, is destroying money.
All money is a representation of goods and services (and, yes, precious metals). Destroying the representation does not destroy the goods or services. The creator of this crypto-currency has to only verify that the representation has truly been destroyed and then it must issue new crypto-currency to replace what was accidentally destroyed.
GeorgeGist
(25,327 posts)lapfog_1
(29,243 posts)how do they verify that anything is missing?
Without knowing the details of these two key wallets... and the "theft" of those wallets, how does one know how much crypto-currency was accidentally destroyed.
Vapor currency is backed by nothing. Real currency is backed by debt.
It's, literally, in the ether.
lapfog_1
(29,243 posts)OR by the determination between a seller and purchaser of some goods or services as to what the value of the crypto-currency represents.
With some block chain currencies, there is also a relationship (literally) to the amount of energy needed to cause a processor to "decrypt/encrypt" the next block chain iteration. Hence the mining that many engage in.
OilemFirchen
(7,143 posts)That should tell you something about its intrinsic worth.