MESS system will not provide sufficient protection for Ethereum Classic from 51% attacks
This summer, the ETC blockchain fell victim to three 51% attacks in a month. In mid-October, ETC Labs implemented MESS (Modified Exponential Subjectivity Score) to reduce the likelihood of future attacks by 51%.
However, according to a report by IOHK and ETC Cooperative, "The MESS solution does not provide the required level of security, and there is no guarantee that further attacks will not be successful." In addition, MESS does not provide “high confidence to stakeholders that confirmation time will be reduced to the desired level”.
MESS is designed to make reorganizing a large number of blocks 31 times more costly, in theory negating a 51% attack profitability. As ETC Labs previously stated, if MESS, activated on October 10 after successful testing, had been implemented back in the summer, 51% attacks on the Ethereum Classic blockchain would have cost the attackers $ 20 million.
IOHK and ETC Cooperative have studied various solutions proposed by development teams from across the ETC community and stated that checkpoint and time stamp solutions will provide better security than MESS.
Timestamps will allow ETC to base its security on another secure blockchain like Bitcoin, according to the report. The checkpoint system implies that the "trusted authority" chooses a block that will represent a consistent standard for all participants in the network.
ETC Cooperative CEO Bob Summerville hopes the report will be the first step towards decentralized decision making by ETC developers. The report also proposes to implement a “decentralized treasury”, which will be a permanent source of funding for the future development of the ETC platform. “A democratic and transparent funding mechanism will also allow the ETC community to determine its future direction of development and choose which innovations will be included in the ETC” ,. The report claims that this will ultimately allow ETC to "keep up with and even surpass other platforms."
Central Bank of China: Illegal gambling organizers used USDT to launder money
The People's Bank of China said that with its participation, illegal activities to organize a gambling business, in which digital assets were used to withdraw capital abroad, were stopped.
According to The Block, on Thursday the central bank published a blog post detailing the details of a joint operation with law enforcement agencies to combat online gambling. Usually, servers in foreign jurisdictions and various ways to bypass capital controls in China are used to organize such activities, the regulator explained.
In a recent episode, the Huizhou branch of the People's Bank of China helped police shut down three sites and detain 77 suspects who had used USDT for cross-border money-laundering operations. Their cost, according to the publication, was about 120 million yuan, or $ 18 million.
“At the same time, not only bank transfers were used, but also virtual currency. Money laundering was carried out at several levels, so the movement of funds was extremely difficult, ”the Central Bank said.
R3 Launches FATF Compliant DeFi Token
As reported by CoinDesk, XDC has been released on the public version of the Corda blockchain. It was built with the regulatory authorities in mind and "will open the door to a variety of DeFi applications based on distributed ledger technology." In the first phase, 1 million XDC will be released to power applications on the Corda Network.
“XDC is a digital currency in itself. It is issued as an exchange token for members of the Cordite Society and will be evenly distributed among them, ”said former RBS banker and Cordite CEO Richard Crook.
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Each node in the Corda Network will be represented by a legal entity whose identity will be confirmed by a special certificate. Firms that take part in the management of Cordite through a decentralized autonomous organization are automatically subject to all necessary checks. This will meet the requirements of the Financial Action Task Force on Money Laundering (FATF), which cannot be met when Ethereum-based DeFi applications are launched, Crook said.
“Regulators have set requirements for digital currencies, and XDC meets these standards. It meets the requirements of most jurisdictions as a digital currency, and therefore we are one step ahead. “We are the next generation Bitcoin or XRP,” says Crook. - All services in the financial industry must address the problem of customer identification from the outset, while ensuring the confidentiality of participants. There are many DeFi projects out there today, but if their technology doesn't solve this problem, they seem to be ignoring the requirements and warranting legal action from regulators. "
Additionally, the XDC code can be used to launch Corda-based central bank digital currencies, Crook said. UK-based institutional platform BCB Prime Services, working with Bitstamp, Coinbase, Galaxy and Kraken, will provide OTC liquidity and XDC custody services.
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