Reddit Confirms Hack Lead to Users Losing Bitcoin Cash Tips

Continuing the story from the 31st of December, Reddit has stated that its mail provider, mailgun, had been compromised. Citing reports of completed password resets that account owners did not request. Reddit also stated that it has moved the password reset facility to an in-house server. The attackers gained access to the content of password reset emails, allowing them to reset passwords for any Reddit account. Mailgun’s blog stated that the attack occurred via a compromised employee account, allowing the attackers to gain access to mailgun customer’s API keys.

Accounts that have Two-Factor authentication enabled are not vulnerable to password reset attacks. Since an attacker must acquire the single-use code to change the password. KeyserSosa, a Reddit admin, stated “We paused final roll out because of the holidays since it’s not a small change and wanted full coverage before final testing on everyone.“ when asked on the status of 2FA roll out to all users. Once full rollout is complete, you will no longer need to be a moderator to use 2FA on Reddit

Protecting your accounts from attacks

This attack shows how far an attacker is willing to go if they believe they can gain from your account.  Remember to never publicly flaunt or share how much of a given cryptocurrency you own, always use secure and unique passwords, never reuse passwords, and enable Two-Factor authentication if you can.

Coinbase Added Bitcoin Cash and the Rollout Did Not Go Well

coinbase

Bitcoin exchanges Coinbase and GDAX added full support for bitcoin cash on Tuesday evening, and the rollout did not go smoothly.

Bitcoin Cash Price Explodes After Coinbase Listing

Earlier today, Coinbase announced in a blog post that it had added full support for bitcoin cash, the third-largest cryptocurrency by market cap, enabling users to buy, sell, send, and receive the coin on both Coinbase and GDAX, its professional trading platform. Customers who had coins stored on the exchanges at the time of the fork also received access to their airdropped funds.

The bitcoin cash price surged to record levels in response to the announcement, reflecting the fact that Coinbase’s brokerage service is one of the primary ways in which new users in many countries — the U.S. in particular — purchase cryptocurrency. Some analysts attribute the recent litecoin and ethereum rallies, for instance, to their presence on Coinbase amid an explosion of new user registrations.

bitcoin cash price
Source; CoinMarketCap

Within hours, the global average bitcoin cash price had jumped from $2,300 to $3,000, and it swelled as high as $3,813 before settling down to a present value of $3,224, according to the BlockExplorer price index. This movement represented a single-day increase of 47 percent and lifted bitcoin cash’s market cap to nearly $55 billion.

A Messy Rollout

The news was a huge boon for bitcoin cash proponents, as it further cemented the coin as a top-tier cryptocurrency and made it more accessible to new investors, many of whom likely remain unfamiliar with it.

However, for the company, the rollout could not have gone much worse.

Coinbase’s pricing data comes from GDAX, where the bitcoin cash price quickly — and inexplicably — shot up to $8,500 before the exchange shut down BCH trading and cleared the order books just minutes after their launch.

bitcoin cash price
Source: Coinbase

At press time, GDAX’s BCH markets remained offline, with the last posted trade priced at $9,500. Coinbase, however,  had adjusted the bitcoin cash price down to $3,193, a level that corresponded to the global average.

The rollout left users confused — and enraged — and scores of frustrated users took to social media channels to vow that they would cease to use either Coinbase or GDAX.

It is likely that cooler heads will prevail once GDAX corrects whatever issue caused the price to leap to $9,500 and launches stable BCH markets. Nevertheless, the incident marks yet another public relations headache for Coinbase following a year of unprecedented expansion that has been accompanied by significant growing pains.

Featured Image from Pexels

This Miner Will Return That Bitcoin Cash You Sent to a SegWit Address — For a Fee

bitcoin cash

A miner has successfully recovered more than $600,000 worth of bitcoin cash mistakenly sent to SegWit addresses, and he or she intends to return the coins to their rightful owners — for a fee.

The decision to fork away from the main bitcoin blockchain and create bitcoin cash grew out of a yearslong debate about the appropriate way to scale Bitcoin. However, the timing of the fork was related to the impending activation of the Segregated Witness (SegWit) upgrade on the main network.

Consequently, the Bitcoin Cash network has not upgraded to SegWit, and bitcoin cash transactions get stuck when individuals mistakenly send them to SegWit addresses. These funds can be claimed — by anyone — but the process is technical, arduous, and requires mining hardware. Mining pool BTC.com had recovered 100 BCH and returned them to users, but as of yesterday more than 493 BCH — worth $609,000 — remained stuck in SegWit outputs.

Today, that 493 BCH is no longer stuck. An anonymous miner — known only by the handle “bchsegwitrecover” — revealed on reddit that he or she had successfully recovered the coins.

bitcoin cash
Source: Block Explorer

The miner struck an altruistic tone, stating that he or she had done this as a service to the community.

“Some of you may have noticed this transaction recently which spent 493.54495133 BCH that was stored in segwit outputs,” the post said. “I have taken all of these coins to help those that have mistakenly sent BCH to segwit addresses,” the post said.

Affected users can retrieve their funds by sending the miner a signed message from the address from which the coins were sent — as well as a signed message from the address from which they are recovering the lost funds — and he or she will return them to the owner. The deadline to reclaim the funds is December 5.

There’s a catch, however.

“Because of the significant effort that was required to both claim these BCH and to verify that each person is the person who should be receiving the BCH, I will be taking 30% of the BCH recovered as a recovery fee. This means that you will receive 70% of the funds that was stored with a segwit address,” the post continues.

This might seem like a steep fee. It amounts to more than $180,000 — more if some users do not reclaim their funds. However, as the funds are already in the miner’s possession, victims must choose between reclaiming 70 percent of their lost funds or losing them permanently. All things considered, they are lucky the miner is returning any coins at all.

Crypto VC: No Armistice in Bitcoin Civil War

bitcoin civil war

An executive at a prominent cryptocurrency investment firm says that he doubts that bitcoin and bitcoin cash will be able to avoid the so-called bitcoin civil war as long as they maintain the same mining algorithm.

Since bitcoin cash launched in August, its advocates have made a concerted push to brand it as the true heir to bitcoin’s original vision as a peer-to-peer electronic cash system. Following the cancellation of SegWit2x last week, the bitcoin cash price surged to an all-time high while bitcoin entered a steep decline, shocking the community into the realization that bitcoin cash’s claims have some teeth.

Many influential figures, including both Andreas Antonopoulos and Jihan Wu, have cautioned the community to stray from framing the scaling debate as a civil war. They argue that the two cryptocurrencies have fundamentally different use cases and visions and can consequently coexist peacefully — just as bitcoin has with the legions of other altcoins that have launched over the years.

However, Ari Paul, chief investment officer at crypto-focused firm BlockTower Capital, stated on Twitter that he does not anticipate that bitcoin and bitcoin cash will be able to coexist as “friendly differentiated currencies” as long as they are fighting a zero-sum battle for a limited resource such as hashpower.

“The idea that BTC and BCH can be friendly differentiated currencies is nonsense,” he wrote. “PoW mining is one of the key underpinnings of ‘trustless digital scarcity’, and it breaks if miners can attack a chain and retain economic value of their hardware.”

Currently, bitcoin and bitcoin cash share the same proof-of-work (PoW) SHA-256 hashing algorithm, meaning that miners can easily switch back and forth between networks to mine whichever blockchain is the most profitable at any given time. Paul says that this necessarily renders one of the blockchains fundamentally insecure, preventing the two cryptocurrencies from ever reaching an armistice.

“As long as BTC and BCH are on same PoW algo, (at least) one is fundamentally insecure,” he explained. “We can have ceasefires amidst a longer ‘war’, but we’re in a state of disequilibrium. I expect the disequilibrium to persist for a while and cause a lot of drama before ultimate PoW fork.”

Technically, this is true of all altcoins that share a hashing algorithm with bitcoin, but no other mining-compatible coin poses as serious a threat to bitcoin’s viability. Paul warns that although they may currently coexist fine, the chain with more ideological support from miners could eventually mount an attack against the lesser one, meaning that its apparent security is merely a facade.

“You can leave a door unlocked for a year without a robbery,” he concluded, but it “doesn’t prove security.”

Featured Image from Zooey / Flickr

Bitcoin Cash Will Be Called ‘Bitcoin’ in 6 Months: Classic Declares Victory After SegWit2x Cancellation

bitcoin cash logo fork

Bitcoin Classic declares that bitcoin cash has achieved victory in the scaling wars following the cancellation of bitcoin’s SegWit2x hard fork, and it is celebrating that achievement by shutting its doors.

In a surprise announcement,  Classic release manager Tom Zander stated that the software development project that began in 2016 with the goal of returning bitcoin to its philosophical roots as a peer-to-peer electronic cash system has completed its goal and is no longer necessary.

Classic’s original intention was to promote on-chain scaling within the original Bitcoin network, helping the network scale to accept increasing numbers of users without forcing them to pay excessive transaction fees. Those attempts foiled, Classic ultimately followed the Bitcoin Cash hard fork, leaving the “Legacy Bitcoin” chain behind.

The announcement comes just days after SegWit2x — hard fork that intended to increase the Bitcoin blocksize from 1 MB to 2 MB — was suspended indefinitely by its leading advocates due to a lack of community consensus. Classic cited this development as confirmation that Satoshi’s vision — as supposedly manifested through bitcoin cash — will endure, while those who follow the Legacy chain will “go down with their ship.”

“The fact that the Legacy chain is stuck at 1 MB, and likely always will be, confirms the Cash chain’s viability,” Zander wrote. “And that means that Classic has fulfilled its promise.”

This promise fulfilled, Zander writes that he feels confident shuttering Classic ahead of its upcoming hard fork, which will implement a new difficulty adjustment algorithm in an attempt to bring stability to the network’s wild hashrate and blocktime fluctuations.

Of course, one must wonder if part of Zander’s decision to conclude the project ahead of the hard fork stems from his objection to the specific details of the fork proposal, some of which he says were made for political purposes rather than technical ones. Due to its sudden closure, Classic will not be releasing software that is compatible with the fork.

In any case, Zander believes that the future is bright for bitcoin cash. In fact, he believes that it will soon eclipse Legacy Bitcoin to become the dominant cryptocurrency. “In at most 6 months I’m sure we’ll just drop the “Cash” and call it “Bitcoin,” he concludes.