Bitcoin Forum

Anyone else believe this is really beneficial for other 2.0 coins out-there?

Bitshares, QORA, NEM, CRYPTI?

Regardless of the outcome, fork or no fork, probably no fork, I feel NXT will be damaged beyond repair.

This is a great juncture for other 2.0s to gain significant traction in the market.

Coincidentally CRYPTI (another 2.0) had their launch date issued for today(postponed however due to theft). Fate or coincidence?

Surely Bitshares will benefit from this. Even QORA with their dysfunctional community should benefit from this.

However, the timing of events couldnt have been any better for CRYPTI and NEM as both are on the verge of release and obfuscated open source.

Take advantage of the situation is all I can say.

Thoughts?

Or just the 2nd deathblow for all proof of stake coins.

I do like DPOS though, just not the way Bitshares implemented it in practice.  They sell the coins in IPO, then delegates are elected by plutocracy using coins as weight for voting.  Like all IPOs, the devs can just send in as much BTC as they want for inifinite premine since all the BTC profit goes to themselves anyway.

If the theft was POW or POS makes no difference.


The BTC raised is publicly audited.

Your thread's title does not match the content of the post itself.

It has no impact on the other 2.0s as there's nothing a crypto currency can do to avoid these kind of thefts. beyond blacklisting the use of exchanges from countries like China and Nigeria.  It wasn't the failure of a brain wallet or some security mechanism - it was the failure of a Chinese exchange who took less safety precautions than the typical holder.

Yeah it seems like this exchanges dont take some of their coins so seriously, but it has nothing to do with countries, mintpal an Uk based exchange got hacked too for vericoins because they dint have cold wallet for them as they advertised.

If BTER is hacked why does this have influence on NXT technology?

Because the hacker will dump all the next on you.. it will not affect the technology itself but the price and confidence surely.

NXTs image/confidence will forever be tarnished regardless of the outcome. As a result people will abandon ship and start supporting another 2.0.

del

It was the fault of a centralized exchange, not of nxt technology. It might aswell have been an inside job. The only impact it should have is that people don't trust centralized exchanges no more.

Decentralized exchanges with no fees, such as MGW, will be the future.

Centralized exchanges are less of a problem now but what happens when crypto currencies are worth $1 trillion and hacker / inside job steals $20 billion in the time span of 20 minutes?

and that's why it will never happen...

Nxt's distribution, while not actually a part of its technology, has always been one of its biggest weaknesses. This new hack will probably worsen this perception.

What if a decentralized exchange gets hacked?

Well Qora's price isn't looking so great at the moment. :(


Is that even possible?

Distribution is not only a nxt related problem, it's a cryptocurrency one in general. It doesn't matter if you have 73 or 2000 initial stakeholders. Even 10000 is a small number compared to the people on earth.

nothin exists that could be considered a 2.0 coin  ::)

Exactly, currently the newer coins only have more features, all of which still utilize the blockchain. Anything using a blockchain is not 2.0. This is why PoS coins are so dangerous, the risk of hackers already undermines confidence in crypto's without the added risks of PoS. Exchanges might promise cold storage, but I think its fair to say there is a more than decent chance they are staking the coins instead, which clearly means the coins are not in cold storage. I also don't understand why people use Bter, where nearly all of the hacked coins go to... So many different options for exchanges, why use a rotten one?

Somebody foolishly put a lazy security. I do not see how this is a fault of a 2.0 coin, it could happen to anybody.

There is the possibility that NXT might suffer, which means some competing coins may gain.

I think the opposite. Nxt has weathered this storm, and in doing so has shown its strength. The option to fork was available, the choice was made in a decentralised way, and the community chose to let the theft stand. If they don't fork for this, they probably won't fork for anything, so now everyone can have confidence in the currency and its transactions. No-one is "too big to fail" in Nxt-land. No bail-outs.

This left Bter to sort out their problems, which they did. They paid off the thief, and most of the stolen money was returned to them. Bter are hurt, but not enough to destroy them. They are able to make their customers whole, which is the important thing. We don't have to worry about 50m NXT getting dumped onto the market.

It's been interesting to watch. One of the most fascinating proposals, when it seemed Bter had lost the coins forever and would not be able to repay their customers deposits, was for them to create 50m units of an asset on the Nxt Asset Exchange and distribute them to all the customers they owed, to represent the debt. Bter could then buy this asset back at whatever rate they could afford. For example, since the thief returned 5M NXT quickly, Bter could offer to buy their asset at 0.1 NXT per unit immediately. Over time, by putting money aside from their exchange profits, they could offer higher prices until they could afford to pay the full 1 NXT per unit (estimated to take about 3 years). Users could either accept 1 NXT in 10 if they were greedy and sell, or hold onto the asset for the full three years. As an asset, the debt could be traded on the exchange, so people who trusted Bter would repay the debt could buy from those who didn't. As it turned out, this wasn't necessary, but I think it would have enabled Bter to survive and maintain a degree of public trust.

It's worth re-iterating that the hack was due to Bter's poor security, and they have accepted full responsibility for it. Nxt itself is and was secure, and its performance has been exemplary through out. You should have more confidence in Nxt now than in currencies which have not been tested.