Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[Kramerc]

I'm taking that back. Huobi likes to dump as well, some 705 coins in one go. 3600 here we come

[fonzie]

Any of you unfortunate souls trading on Gox experience your bids being canceled without your consent? I placed a bid about 30 min ago and when I saw it should have been hit, I noticed it was not. It was no longer in my order book.

That happend to quite a lot traders in the last months, you might check out the service discussion forum.

[stompix]

Journalists are bad.  They don't understand technical problems and don't know when to STFU about same.

There are two things going on:

1) Due to an old and well known potential problem in one possible implementation of a Bitcoin wallet, some people are able to create 'fake' transactions that will not ever be processed but might fool someone into thinking a transaction has taken place if their wallet is crap and they don't wait for confirmations.  Mt. Gox had not kept their wallet up to date and was particularly vulnerable to this problem due to the way they tracked transactions, which incidentally was the wrong way.  Some other exchanges have also identified that their wallets needed updating and are doing so/have done so.  Kraken, for example, didn't need to update their wallet because they were treating transaction ID's appropriately all along as per the above-mentioned known problem.  There is no risk to the protocol or the coins themselves at all and of course there never was.

2) The Internets are being squeezed today by DDoS troublemakers - as are some of the exchanges.

http://www.digitalattackmap.com/

Journalists are conflating these issues and presenting them as one - and some of them are exacerbating the first point by completely failing to understand the nature of the problem and how/why it only affected a few custom wallet implementations.

Yeah , somebody's got some new toys to play with.
And that 400Gbps , ouch...

http://www.ibtimes.co.uk/largest-ever-ddos-cyber-attack-hits-us-european-victims-1435973

[UnDerDoG81]

Antonopoulos, who is the chief security officer of Blockchain.info, said a DDoS attack is taking Bitcoin’s transaction malleability problem and applying it to many transactions in the network, simultaneously.

“So as transactions are being created, malformed/parallel transactions are also being created so as to create a fog of confusion over the entire network, which then affects almost every single implementation out there,” he added.

As this increases in power the entire system will grind to a halt rendering the network useless. That is most likely what Bitcoinsteve is talking about. As people realise that the robustness of the network is actually quite weak we will see a reducing number of users and an increasing number of people leaving and dumping. Wouldn't you if all this would take place? We are seeing the start of this, and thus proving in principle that it is possible.

So if this is true then it is the end!? Can anyone really confirm this? Then I will sell because I invested too much.

Can somebody (not fonzie) confirm this? Because then I need to sell, I have too much money in BTC.

[JorgeStolfi]

Huobi now below 4000 CNY, first time since Dec/21.

That's one half of its all-time high of 8000 CNY on Nov/19 (although that was a fluke and should not be counted, the legitimate ATH was 7550 CNY on Nov/29.)

[donut]

Antonopoulos, who is the chief security officer of Blockchain.info, said a DDoS attack is taking Bitcoin’s transaction malleability problem and applying it to many transactions in the network, simultaneously.

“So as transactions are being created, malformed/parallel transactions are also being created so as to create a fog of confusion over the entire network, which then affects almost every single implementation out there,” he added.

As this increases in power the entire system will grind to a halt rendering the network useless. That is most likely what Bitcoinsteve is talking about. As people realise that the robustness of the network is actually quite weak we will see a reducing number of users and an increasing number of people leaving and dumping. Wouldn't you if all this would take place? We are seeing the start of this, and thus proving in principle that it is possible.

So if this is true then it is the end!? Can anyone really confirm this? Then I will sell because I invested too much.

Can somebody (not fonzie) confirm this? Because then I need to sell, I have too much money in BTC.

My sources confirm, this is the end.
月亮和超越

[fotosonics]

Journalists are bad.  They don't understand technical problems and don't know when to STFU about same.

There are two things going on:

1) Due to an old and well known potential problem in one possible implementation of a Bitcoin wallet, some people are able to create 'fake' transactions that will not ever be processed but might fool someone into thinking a transaction has taken place if their wallet is crap and they don't wait for confirmations.  Mt. Gox had not kept their wallet up to date and was particularly vulnerable to this problem due to the way they tracked transactions, which incidentally was the wrong way.  Some other exchanges have also identified that their wallets needed updating and are doing so/have done so.  Kraken, for example, didn't need to update their wallet because they were treating transaction ID's appropriately all along as per the above-mentioned known problem.  There is no risk to the protocol or the coins themselves at all and of course there never was.

2) The Internets are being squeezed today by DDoS troublemakers - as are some of the exchanges.

http://www.digitalattackmap.com/

Journalists are conflating these issues and presenting them as one - and some of them are exacerbating the first point by completely failing to understand the nature of the problem and how/why it only affected a few custom wallet implementations.

Well said.

Note to any journalists reading this thread: please help stop spreading irresponsibly inaccurate reporting! Thanks!

[ChartBuddy]

Done with Gox
Explanation

[Sitarow]

[fotosonics]

Antonopoulos, who is the chief security officer of Blockchain.info, said a DDoS attack is taking Bitcoin’s transaction malleability problem and applying it to many transactions in the network, simultaneously.

“So as transactions are being created, malformed/parallel transactions are also being created so as to create a fog of confusion over the entire network, which then affects almost every single implementation out there,” he added.

As this increases in power the entire system will grind to a halt rendering the network useless. That is most likely what Bitcoinsteve is talking about. As people realise that the robustness of the network is actually quite weak we will see a reducing number of users and an increasing number of people leaving and dumping. Wouldn't you if all this would take place? We are seeing the start of this, and thus proving in principle that it is possible.

So if this is true then it is the end!? Can anyone really confirm this? Then I will sell because I invested too much.

Can somebody (not fonzie) confirm this? Because then I need to sell, I have too much money in BTC.

My sources confirm, this is the end.
月亮和超越

Your sources are invalid.

“Antonopolous predicts things will be operating normally in between one and three days.”
- http://finance.yahoo.com/news/lots-major-bitcoin-exchanges-under-181949995.html

[fonzie]

I will send out warnings to all big newsletters and TV stations, so that everybody will be warned about the current situation as quick as possible.
Everyone should have the same chance to sell before it´s too late.

[JorgeStolfi]

There are two things going on:

Wait, I had understood that there were two massive hacker attacks going onright now: a huge DDOS attack against some unspecified company's site and a lareg-scale spamming of the Bitcoin network, specifically, with "malleated" copies of transaction messages.

The potential vulnerability of exchanges to "malleated" transactions was a separate concern that (as far as we know) was exploited only at MtGOX, over many months, but prompted many other exchnges to udate their software over the last 24 hours.

Isn't this correct?

[FTWbitcoinFTW]

To all bears  full fiat now, GOOD LUCK

Rebond is here and tmrw when shit is fixed, rally will come !

[fotosonics]

As to who's behind it, Russia? NSA? The Fed? Anyone who feels threatened by Bitcoin?

People who want to take your coins, if you are foolish enough to give them up.

Russia.  



More specifically a couple of Russian script kiddies.  

Actually looks more like China, according to this pretty insightful site. http://www.digitalattackmap.com/#anim=1&color=0&country=ALL&time=16112&view=map

Thanks to KFR for this bit of light in the night.

[UnDerDoG81]

Hmm some comments say the USA, Russian and Chinese government is doing this DDOS attacks.

[fotosonics]

Hmm some comments say the USA, Russian and Chinese government is doing this DDOS attacks.

SOURCE PLS

[delphic]

I bet Proudhon is behind the DDOS attack  

Confirmed, of course.

[KFR]

@Jorge That is correct.  

I could have been more specific about the first point but I was concerned people would hear DDoS in both paragraphs and be just as confused as the journalists.

Yes, there is a flood of fake transactions on the network but they are manageable and they don't affect most Bitcoin clients.  The broken custom wallets needed updating to mitigate the problem.  This is not a 'traditional' web DDoS attack as we generally use the term these days and it's destined for failure.

At the same time there are web DDoS attacks going on.  The attackers are trying to cause confusion hence the multi-front attack and the timing is unlikely a coincidence.

Bottom line:
1) When the attacker botnets run out of money, the web DDoS attacks will stop, which will be soon.  This will lessen the load on the exchanges and the other sites under attack.  
2) When the exchanges have updated their wallets, which most of them except Gox have already successfully completed, even fake transactions shouldn't be a problem either.
3) Everybody's bitcoins are safe.  

As per my earlier posts the Bitcoin Foundation carries just as large a portion of blame for this as Gox does.

[stompix]

Hmm some comments say the USA, Russian and Chinese government is doing this DDOS attacks.

Really?
If they were the ones behind , 400gpbs only?
It seems cloudfare was successful in defending their clients , wonder who they were.

[wachtwoord]

Whoever controls communications,

Whoever controls Dune controls the spice. Whoever controls the spice controls the universe.