Saturday , July 31 2021

Case of the binap: The proposal for the reorganization of Bitcoin generates controversy in the community | CryptoNews

On Tuesday, the Binance Cryptobag team reported that it had suffered a security breach that took 7,000 BTC from the hot portfolios of the platform. And the developer proposed to change the theft by reorganizing the Bitcoin block of chains, which generates community debate.

Binance announced that the hacker managed to get the key API keys on the platform and two-factor security codes (2FA) to launch a malicious transaction that stole more than $ 40 million in battles and triggered a suspension of all deposits and withdrawals from cryptobols.

After the announcement, Jeremy Rubin suggested that the situation could change if the chain blocks are reorganized. In order to do this, the Banks Board should provide private keys from stolen funds and sign lots of transactions with UTXO unspent outputs that will be paid to miners with different time stamps to be a permanent reward. This will be "cheaper than losing 7,000 BTC".

Around this proposal was made a debate with arguments for and against, remembering that in 2010 there was a reorganization, when an error was discovered during the inflation of the block chain of Bitcoin. However, at that moment the network was at an early age, with almost two years of work, a few installed miners and a very small community, compared to the millions of billionaires that currently exist around the world. Later, in 2016, it was suggested that it be re-organized after the hacking of BITFinex 120,000 BTK, but the option was dropped.

On May 8, Binchang Changpang Zhao's executive director held a lively session for questions and answers to provide more information on the event. During the round, the CEO updated the theft of 7,070 BTC and mentioned there he would consider this idea. Then, on his Twitter account, he stressed that the exchange house rejected the reorganization proposal, considering that the negative consequences will outweigh the positive.

Zhao acknowledged that the reorganization, although it was approved by many users, will check the credibility of the network. You can generate it with it division of the community of battlesnakes, and in this process two block-chains can be created. The one who defends the invariability of the network (the basic principle in the concept of Bitcoin) and keeps the transaction by finding the funds and reorganizing the new chain, where the theft will be "revenge" and stolen assets they will pass into the hands of the miners. This stubbornly will remember what happened with Ethereum in 2016 on the DAO's Hack product.

A hypothetical situation in which Binas could fulfill this idea

A user posted on Medium in a way that Binance can cause network reorganization as soon as the hacker is known. In principle, Binans will create a transaction that will spend a large portion of the stolen assets from the last address controlled by the cryptobol (block before registering a malicious transaction) at a bribe address. This address should be posted on the website to the private key of the address.

Miner will build an alternative block to the block containing the bribe transaction, along with another transaction that transfers this bribe to its address. So, the alternative extension of the string will replace the block containing the malicious transaction, which will cease to exist in the network.

The previous case is a hypothetical situation, that everyone who will try will need to coordinate with more than 51% of the mining pools, and the prize must be more attractive than what the miners may lose because they do not follow the original chain; every reward for doing this feat goes down, because more blocks are joining the battle chain, as it becomes more expensive to run.

UPDATE: the title was modified to become more consistent with the article.

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