Parity CEO Comments on How the New Ethereum Feature Can Prevent the Parity Hack Method

According to the CEO of Parity, Jutta Steiner, the new Create2 Ethereum (ETH) functionality would have prevented the freeze experienced by Parity’s multisig wallets. Steiner said this during an interview with Fortune a short time ago.

In 2017, more than 500,000 ETH – worth around $62 million – held by Parity, were frozen due to the fact that a hacker exploited a software bug that resulted in frozen funds. Nevertheless, it might be possible to release these funds in the near future.

A few days ago, Ethereum experienced a hard fork to implement an upgrade called Constantinople. This upgrade includes a new improvement called CREATE2. With it, Ethereum paves the way to recover these funds.

Steiner commented about it:

“If that functionality CREATE2 had existed at the time, there wouldn’t have been a vulnerability. So if you think now, okay, we introduced and sort of fixed the tooling, then wouldn’t it be the right thing to do also fix the issues that arose when we didn’t have the tooling?”

There were some reports that said that the new upgrade could have introduced a new attack vector. Nonetheless, these claims have already been denied by Vitalik Buterin, Ethereum’s co-founder.

Back in April 2018, there was a vote in which users could decide whether to unfreeze the funds or not. 55% of the vote selected not to reverse this situation. This voting issue created some controversies related to how unfair this vote was that those having a larger sum of ETH had more votes.

This vote was held because there were several Parity developers that argued to had fork the network and restore the frozen cryptocurrency. Thus, with a recent hard fork implemented, Steiner believes that it is possible to take the necessary steps to unlock these funds.

Now, the Web3 Foundation, which supports blockchain developments through Polkadot, is going to hold a second token sale that could value the initiative at $1 billion. Nevertheless, Steiner believes that the recovery of the frozen funds would have no impact on the fundraiser.

Polkadot creates scalable and interoperable blockchain networks that aim at linking different types of blockchains. This protocol has been severely affected by the hack in November 2017.

(Excerpt) Read more Here | 2019-03-05 22:01:00
Image credit: source

LEAVE A REPLY

Please enter your comment!
Please enter your name here