IOTA Archives - 2100NEWS

Gabrijel ŠerjakMarch 13, 2018

4min495

Willem Pinckaers, a security researcher, says IOTA’s home-cooked cryptography revealed private key of the sender of the transactions as soon as it was made.
The vulnerability has now apparently been fixed, but the private key is meant to be very, very private, and that it was so easily readable is concerning, especially as researchers say there is more where that came from.
“People are starting to take a closer look at the Iota crypto code and things aren’t looking pretty. I’m fairly confident there’s more where this came from,” says Matthew Green,‏ a cryptography professor at John Hopkins.

Private keys are kept very secret because, like a physical key that unlocks the door, they move your funds. For the private key to communicate with the public key it uses a cryptographic method called signature that proves you own the private key without revealing the key itself.
IOTA uses something called WOTS for the cryptographic signing method. They do so because they say its quantum proof as a random part of the signature is revealed each time a transaction is made. Address re-use, therefore, is highly discouraged.

Three months ago someone posted on Reddit that  $26,000 worth of IOTA was stolen from an address that had made only one transaction. This shouldn’t happen with WOTS, researchers say. It should reveal part of the private key with each address reuse, but not all of it in the first use of that address.

This happened because they use home-grown crypto which revealed the full private key in some 37% of transactions before they implemented a workaround.
To understand the workaround, cryptography uses a cooker of a sort, called a hash. That cooker takes words and transforms them into different words. For Iota, it did so to get 26 different values, creating a sequence. When that sequence started with 13, about 37% of the time, the private key was fully revealed.

They managed to workaround  and just send it back to the cooker when the value is 13 so as to ensure that the value is not 13 without addressing the underlying “cooker.” That’s making researchers a bit angry because they’ve been warning since forever to not use home-grown crypto.

Cryptographers do not often get the chance to play around with homegrown crypto, so now that Iota has given them the opportunity, they’ve been poking holes for some time now. The Iota community seems determined on getting the security community to “prove their claims” by developing weaponized exploits.

But that’s not all Iota’s whole suggestion they are scalable seems to be in question.

Iota, uses a tree chain rather than a blockchain whereby every transaction has to confirm two previous transactions. If suddenly there is a surge in usage, there might not be enough transactions for you to confirm, so you have to wait.
So much for the trillions of Internet of Things (IoT) machines they wanted to serve through their centralized server working on homemade crypto.
The project seems to have a lot of road blocks in their way to the top.

 

 

 

 


Kim GrošeljJanuary 22, 2018

3min399

IOTA wallets were hacked, they stole Millions. Individuals have been left with emptied wallets due to malicious websites providing users with a new wallet seed.

Two days ago, many users reported having their funds in their IOTA wallets stolen from an unknown source. The cause? Online seed generators. The damage is estimated on around $4million. Online seed generators for IOTA are websites that provide users with a quick solution to generate a new seed for their IOTA wallet.

When you create your IOTA wallet you have to create 81-character seed rather than generation being baked-in. There are workarounds as outlined by the HelloIOTA website. It includes using an IPFS seed generator or creating a key using either the Mac or Linux terminal.

The top hit for online seed generation for IOTA wallets has since taken down its website. It left a message simply stating “Taken down. Apologies.”. The generator would require viewers to move their mouse around to “generate randomness,” and then provide a seed that fit the requirements of an IOTA wallet. It also provided a version of the seed encoded as a mnemonic phrase as well.

According to a blog post from a Network member – Ralf Rottmann, the attackers deployed a DDoS attack against popular IOTA fullnodes. They left victims of the hack unable to rescue any of their funds:

The attackers knew the seeds. You invited them into your wallet, by handing them your keys on a silver platter. The community of fullnode operators is discussing various strategies to better protect public community nodes from this specific and similar DDoS attacks in the future.

The IOTA community has been quite clear about online seed generators. They encouraged users to change elements of the seed in order to prevent any vulnerabilities. They have also been repeatedly pointing to the fact that the vulnerability has nothing to do with IOTA’s technology and rather just seed generating services.

IOTA has gone through a bit of drama in a past few months. Especially with their Microsoft partnership clarification after a botched press cycle and patched vulnerabilities found back in the fall. In October, the IOTA team also took custody of at-risk funds due to another vulnerability with the use of a snapshot.

Although quite ambitious, the tangle seems to always be tangled up in controversy.


Luka GlogoskiDecember 27, 2017

2min537

With only a few days left in the year 2017, it’s time to look back at how far we’ve come in the crypto world since this time last year.

While bitcoin grabbed the most headlines in 2017, it’s not been the best performer by any measure. While impressive at 18x growth, it’s fairly paltry compared to Ethereum’s 106x, Litecoin’s 64x or Ripple’s 206x multiplier.

Continuing down the list there’s more good news for all top token hodlers from 2016.

Perhaps surprising, the top 12 coin which brought the biggest gains in the past 365 days has been NEM with a 264x multiplier.

On the other hand, the most “disappointing” coin has been Iconomi, which fell from 12th place all the way to 82nd and only returned an 8x gain to its investors.

In case you’re wondering, if you had invested €1,000 in each of the top 12 coins on 25th December 2016, your coins would be worth €927,000 today. That’s 7725% return on investment. Not too shabby.

Congratulations to Bitcoin, Ethereum, Litecoin, Ripple, Dash, NEM and Monero, which have managed to hold on to top spots and (ignoring Bitcoin forks) welcome to the newcomers to top 12 IOTA, Cardano, EOS, NEO & Stellar.

As we enter 2018 with great excitement and trepidation, it will be fascinating to see what this chart looks at the end of December 2018.

Good luck to everyone with your picks of future top coins.


Kim GrošeljDecember 13, 2017

4min306

The IOTA Foundation has explained that it doesn’t have a strategic partnership with Microsoft.

 


Dominik Schiener (co-founder) stated:

We have never mentioned that any of the companies which are participating in the marketplace are our ‘partners, we call them participants. We are in touch with multiple divisions at Microsoft (Chicago, Paris, Munich).

He said they were hosting two meetups in Chicago and on in Paris at the Microsoft offices.

IOTA PRICE DECREASED IN LAST FEW HOURS

Last week, the price of IOTA surged by more than 600 percent over the past month and was trading at a global average of over $4.

Microsoft blockchain specialist Omkar Naik released a statement in regards to the company’s participation in IOTA’s Data Marketplace.

He stated:

This next generation technology will accelerate the connected, intelligent world and go beyond blockchain that will foster innovation real world solutions, applications and pilots for our customers.

Schiener then said that the IOTA development team plans to meet up with Naik’s team to help the company in establishing sensors which will allow Microsoft to sell their data directly on the IOTA marketplace.

Supposedly, Samsung, Cisco and Volkswagen also partnered with IOTA, to utilize its Tangle-based solution for data monetization.

The price of IOTA has dropped over the past few hours, falling behind Ripple and Litecoin. The recent price drop of IOTA is notable because, following the statement of Naik and the participation of Microsoft, the market valuation of IOTA increased from $2.95 billion to $13 billion. IOTA is currently worth $3,96.

iota

NO PARTNERSHIP BETWEEN IOTA & MICROSOFT

The original press release dating back a few weeks ago obtained by TNW :

Participants from all sectors and industries are represented, companies such as Deutsche Telekom, EWE, Microsoft, Bosch, TINE, PwC, Accenture, Fujitsu, Schneider Electric, Orange, DNV GL, and many more have deployed sensors that directly sell the data on the marketplace.

Schiener was accurate that IOTA has not entered into a strategic partnership with Microsoft.

The IOTA Foundation and its representatives should have clarified the nature of the relationship between IOTA and Microsoft. The original press release had not specifically stated that the two companies did not sign paperwork to form a partnership.

In the upcoming weeks, despite the lack of a legal partnership, companies participating in IOTA’s testing of Tangle will probablly to continue the testing of IOTA’s technology in the long-term.

Scheiner said:

The launch of the data marketplace was just the beginning. This project will continue for several weeks and is multi-staged.

Even though that IOTA’s price recently decreased, the market valuation of it remains above $11 billion. That is a lot higher than its market cap in November.

 



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