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1401
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 05, 2014, 06:26:45 PM
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I have "discovered" a serious flaw in NXT. The IMF exists to stop the opposite attack on fiats, eg. massive short selling. CfB says this attack is well known, but I didn't know about it and so maybe you don't know about it either. I was told to post it publicly, so here it is:
****
I have come up with non-standard attack, call it financial attack.
Short term, this "attack" would be considered as fantastic by most NXT'ers and it consists of simply buying up all the NXT. Crazy, expensive?
Consider you are large govt with fiat of trillions of dollars, billion dollars is lunch money. They can easily win the "war on NXT". What happens if large scale accumulation of NXT occurs with $10 billion budget. How much of NXT will be left?
All accumulated NXT can be destroyed by sending to genesis acct permanently crippling NXT market. Or it can be converted to many darkNXT accts so nobody would even realize it is happening. I am assuming if we started seeing a lot of NXT being sent to genesis acct, we would notice, but so far no darkNXT detection is implemented. Without realizing, 90%+ of NXT could be destroyed with $10 billion.
Actually at $10 NXT, who wouldn't sell their NXT, so how much NXT will survive a financial attackers $10/NXT bid, especially if it was done cleverly to avoid detection? 1% left? Maybe even less. With .01 precision, smallest increment will be 10 cents even without any more price increase. NXT would be useless for microtransactions, until support is added for microNXT.
James
P.S. Solution is to not destroy NXT when sent to genesis acct, just have it automatically put into community fund. Also, PREVENT darkNXT at the protocol level. I guess evil financial attacker could simply destroy their key though so even with darkNXT fixed, there is no solution to this attack.
If they buy and destroy 90% of the coins is no problem. Remaining 10% will be the new whole currency and it will keep working in the same way. Also if they spend loads of billions to buy 90% of the currency with that money we can start stronger NxT 2.0 .... I don't see the problem. |
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1409
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Bitcoin / Bitcoin Discussion / Re: Slovenia: No Capital Gains Tax on Bitcoin
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on: January 03, 2014, 12:17:15 AM
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I'm actively looking in to this atm & should know more in the next couple of weeks. Quote: Hi Redacted, I’d be happy to discuss further with you. Do you want to have an initial phone conversation first? I don’t want to scare you off, but I want to ensure you are comfortable with our firm’s fees (i.e. they just raised my rate to $720/hr) and we would likely need a $10,000 retainer to get started. Feel free to give me a call to discuss. I’m generally around tomorrow morning and then on the 30th and 31st of December. I look forward to speaking with you, Best, RedactedDood's charging approx 1 BTC an hour  he comes most highly recommended as being top of the field for this with many clients of much fame & fortune, we'll see... ah ! what is this about ? Unless you're really rich or you want to do something really hard, you will get the same result with one who charges $150-$200. Of course you will need to search more, and know he's good. |
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1411
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 07:18:06 PM
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We should be ready for legit DDoS attack when millions newcomers want to try new features... No idea about numbers.
What's a legit DDoS attack? You mean newcomers doing something legit all at the same time and overloading the network? Or hackers DDoSing the network when newcomers try new features to show NXT in unfavorable light? Both things will happen at the same time. |
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1412
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 07:03:39 PM
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offline mining of all NXT accounts in parallel
problem gets worse the more NXT accounts there are
this attracts more hackers the more NXT is worth
This will create an equilibrium effect like a boat anchor to a hot air balloon. The more NXT succeeds, the more it will be hacked.
CfB, tell me there is a solution that is more effective than the user needs to not be unlucky
James
If they can do this with NXT why can't they do it with Bitcoin? Need to have access to your wallet.dat file to attack it. Correct me if I'm wrong, but all account numbers and passwords are encoded into the NXT blockchain, and it is this that is being brute forced, if there really is an attack. Don't need wallet.dat, someone could try brute forcing the private key of any given address. Statistically it's near impossible to brute force though. NXT should just generate the passphrase itself, don't give the user an option to enter one - user generated passphrases are always going to be less secure than a truly random one. Or not allowing to create accounts without secure password. For example you can't create one account with less than 40 random characters. |
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1413
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 06:52:07 PM
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if you just reduce the cost of forging down to ~0 than the low incentive wont matter. thats the point im trying to make. of course this can only come with time as third party developers make better client applications but this is what we should be focusing on. not pooled mining.
Good idea. As I wrote on Twitter, Pooled Forging may be added, not is being added. good to hear. i think pools are a big weakness in bitcoin and the absence of them in nxt will be one of the key arguments in the case for why nxt is the next generation crypto. And the beauty of forging instead of mining is that at some point in the future, with the right apps/hardware devices reducing the barriers to entry to forging to ~0, we could end up with ~100% participation rate even without pools. This is a HUGE selling point because pools kill decentralization. +1 |
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1414
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 06:44:59 PM
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I think this is the wrong way. what we need are clients that fore seamlessly, so even though the chance of winning will be minuscule, there will no no cost to forging, no barrier to entry so people will do it anyway. People pay to play the lottery now don't they? This lottery would be free to play, i think there is definitely some appeal there for users.
BCNext was forced to offer such the way coz small stakeholders won't bother with forging due to very high variation. Less coins forge - cheaper attacks. I don't really like pools for forging. This is like one step back to centralized system. I know we need to do something to allow small stakeholders to forge and get fee's everyday, but not this way. |
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1415
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 05:24:49 PM
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If you send small amounts consider you will need to pay total 2 NxT fee for sending and return, so this is probably more than the NxT you're going to forge in years. Every 24h currently you can forge about: 100k= 1NxT 10k= 0,1NxT 1k= 0,01NxT 100= 0,001NxT So if you send 1k you will need 200 days just to breakeven the 2 NxT fee when you're risking your money in a 3rd party. Also you can't use your coins when you want (you need to wait manual cashout), and now there is no decimals so is imposible to pay out under 1NxT. And what about if your next forum account/email gets hacked and tell him to send coins to another new wallet? You also lose everything. IMO is no point using this, and less with current 1NxT fee. |
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1416
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Local / Español (Spanish) / Re: Proof of Work vs Proof of Stake
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on: January 01, 2014, 04:59:51 PM
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Es con arboles de bloques en lugar de cadena de bloques ¿No?... Creo que andan con algo parecido con eMunie. Según dicen los tipos llevan un año desarrollando el sistema... Más info: http://www.emunie.com/Ya me imaginaba que por ahí andaban los tiros, aunque no estaba seguro. Por lo visto emunie también estará basado en java, ¿tan difícil es crear estas monedas en C++? También se suma a la moda de empezar a código cerrado y recaudando fondos antes de de lanzar la moneda. Es cierto que tanto NxT como emunie no tienen pinta de ser scams (aunque podrían serlo hasta que se demuestre lo contrario), por lo que aunque funcionen esto va a abrir la caja de pandora y en el 2014 vamos a tener miles de monedas de este estilo, en las que muchas acabarán en recogida de dinero después de unas cuantas falsas promesas y si te he visto no me acuerdo. Vamos a pasar de la era de los pre-orders scams de las compañías mineras ASIC en POW a la de pre-orders scams de los creadores de criptomonedas POS  Unos pocos que acierten en las pocas POS criptos que funcionarán se forrarán, el resto (la gran mayoría) acabarán sin nada. |
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1417
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 04:46:28 PM
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Just forget about SMS, email, fingerprint and drone verification is no way to do that, the system would be centralized and easy to break. This is big conflict between general idea of cryptocurrencies and Joe Average's mind. While cryptos are simple they aren't fit to the mind of average user of real-life monetary system. Cryptos can't work this way unless you have a trusty and decentralized P2P email provider. You can forget about this until 3rd or 4th cryptocurrencies generation  You can't set a centralized verification system to your crypto because it's a bottle neck and it will fail at that point. CENTRALIZED IN CRYPTOWORLD = EPIC FAIL |
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1418
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 04:43:58 PM
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I want to tell the world to never accept a withdrawal from my NXT account. To do this I click a button on my client and go to a special page. I pay a NXT fee and the page generates two numbers, a public key and a private key. I attach the public key to a colored coin. THis is my announcement to the world to lock my account... This can be done with existing functionality. Just create new account, send coins to it and never use this account until NXT costs $500. This is absolutely the same scheme as yours. And it's free  That's basically what I did. Create an account with very strong pass (even a 160 bit pass is enough). Name it saving and transfer all your fund there. Never put the password online again. Nothing can break this account unless they can break down the whole NXT network. This kills NxT if people can't forge in a secure way. If no-one wants to forge because system is not secure enough (like having cold wallets) this is wtf. |
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1419
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Alternate cryptocurrencies / Announcements (Altcoins) / Re: Nxt :: descendant of Bitcoin - Updated Information
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on: January 01, 2014, 04:37:53 PM
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Hey, looks like I just got robbed, too.
Someone please check this account: 12152013998194592943
They now have 147k+ from me.
Had a 40 char random password, capital, lower, numbers, symbols.
WTF?
you're 11794318797680953099? http://22k.io/-account/12152013998194592943Yes, that was me. Just created a new account, though, and sent the remaining 100k there. If you acc got hacked they will take all not leaving you with 100K. I guess this is the new way to spread panic and try to buy lower. Or even better, you send funds to one new account, you come here and tell "hey, I got hacked! can someone please send me more NxT that was all my money  " Of course some histories will be true, but you can never know. |
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