Bancor - Decentralized ?

[hasmukh_rawal]

Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should not have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

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[joniboini]

People say that if it was a completely decentralized exchange then it should have lost the funds.

Correct me if I'm wrong, but isn't Bancor the one who holds the control of the smart contract? If they control it, then, of course, they can change the code to make sure there is no transaction going in or out from their smart contract. AFAIK, in a decentralized exchange, your funds need to be sent to the contract address first before it went directly to other wallets.

Just like what has been reported here:

Nevertheless, on July 9, it became subject to a heist, during which the hackers managed to steal roughly $23.5 million worth of crypto — 3,200,000 BNT (worth $10 million), 24,984 ETH (worth approximately $12.5 million) and 229,356,645 NPXS (worth roughly $1 million). The Bancor team confirmed the theft on its Twitter and swiftly froze the stolen BNT tokens, as such an ability was built into the Bancor protocol “to be used in an extreme situation to recover from a security breach,” limiting the total damage to approximately $13.5 million.

Source: https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

I think a decentralized exchange should be like what Charlie Lee said: "it can't lose customer funds nor freeze it". (https://twitter.com/SatoshiLite/status/1016499756158234624)

[nicster551]

Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

No matter where you go there will be hackers. And if you want to secure your funds, then you should secure them by yourselves and not letting any exchange control over it.

[Valzador]

I think a decentralized exchange should be like what Charlie Lee said: "it can't lose customer funds nor freeze it". (https://twitter.com/SatoshiLite/status/1016499756158234624)

it is impossible to have a truly decentralized exchange.
the logic that if the development team of a decentralized market does not have access to freeze its users 'funds, the development team's computers must be destroyed to prevent them from freezing their users' funds. I as a software engineering scholar was taught science to maintain the system I created. of course the development team of a decentralized exchange has that knowledge. they will not let their system run by itself without their access rights. this is reasonable in the world of software engineering.

[TastyChillySauce00]

People say that if it was a completely decentralized exchange then it should have lost the funds.

Correct me if I'm wrong, but isn't Bancor the one who holds the control of the smart contract? If they control it, then, of course, they can change the code to make sure there is no transaction going in or out from their smart contract. AFAIK, in a decentralized exchange, your funds need to be sent to the contract address first before it went directly to other wallets.

I found that Idex works the same way as bancor, we need to deposit the ETH or ERC20 token to the smart contract first before we can place the order to the market. Never actually get bothered with it but once I realize that it's
actually the same as centralized exchange but less stricter. I wonder what if someone just found the hole to get through to the smart contract, what will happen by that.

[Tipstar]

I think a decentralized exchange should be like what Charlie Lee said: "it can't lose customer funds nor freeze it". (https://twitter.com/SatoshiLite/status/1016499756158234624)

it is impossible to have a truly decentralized exchange.
the logic that if the development team of a decentralized market does not have access to freeze its users 'funds, the development team's computers must be destroyed to prevent them from freezing their users' funds. I as a software engineering scholar was taught science to maintain the system I created. of course the development team of a decentralized exchange has that knowledge. they will not let their system run by itself without their access rights. this is reasonable in the world of software engineering.

It's not an impossible thing. A exchange that executes P2P trading after matching orders can be truly decentralized ones. It's not that difficult to achieve and would be faster and less heavy for the network. They can use their own token for the gas. The smart contract should be made to execute only when the matching happens.

[ice18]

Its decentralized but until now there are no perfect codes that written to be able to fully secure tokens its breakable, hackers are more intelligent than codes this kinds of decentralized exchanges must regularly conduct hacking rewards to break their system and to update security loopholes.    

[Vit83]

Etherdelta was decentralized too. But it was hacked by replacing domain address. There is nothing safe in the internet at all) You can be hacked everywhere.

[Gogochen]

I had a lot of faith in Bancor because it was decentralized.
However, at present, it can freeze its own tokens, while other tokens are still out of control, so I think other tokens are still trading reliably.

[mattcerna16]

I think the platform/exchange is decentralized but clearly the token isn't. Won't go near any token that isn't decentralized personally. That's the whole point of crypto.

[Fredyink]

They need to do a lot more when it comes to security. As many other big and small players.
They gathered millions last year and they should do much more.
I'm using Bancor it's easy to use, but I'm feeling betrayed now.

[CryptoTamer]

Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

Bancor Network is able to freeze their user fund and it means they have " control ". I think a system that can be controlled by one entity is a Centralized system

So... It's clear to me that Bancor is not Decentralized

[mu_enrico]

I think the correct term about this kind of exchange is "partially decentralized."
Imagine we are in the traditional marketplace, then we should be able to buy/sell without any 3rd party intervention. In this case by a simple cash-based system.

Now with this "DEX," users cannot do buy/sell directly. They have to use "centrally planned" smart-contracts that often contain bug and/or security hole.

[dzelenyanskiy]

I think the news about the hacking of the Bancor stock exchange was one of the factors of a sharp drop in the capitalization in the crypto currency market on July 9. Unfortunately, the stock exchanges still do not pay sufficient attention to security issues

[hasmukh_rawal]

Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

No matter where you go there will be hackers. And if you want to secure your funds, then you should secure them by yourselves and not letting any exchange control over it.

Secure it ourself ? A time will come that you will need to have to go to an exchange for trading some coins. We can't ever be without an exchange.
I know that our coins are safe within our control but what about the others ? What about the traders who regularly trade on exchanges ? An exchange should have better security to combat this type of problem.

I think the news about the hacking of the Bancor stock exchange was one of the factors of a sharp drop in the capitalization in the crypto currency market on July 9. Unfortunately, the stock exchanges still do not pay sufficient attention to security issues

Might be true. Security surely needs to be improves in this case. I hope we get better exchanges in the future so that our money stay safe and secure.

[crptotrader007]

Firstly I haven't heard anything about bancor untill this news arrived.Secondly It cannot be possible to freeze anything in decentralized system.According to me in decentralized system traders capital must remain in their wallets and cannot be entrusted to a third party at any stage and in this case something else has happened.Even though bancor is claiming that they have developed some Cryptodefenders to fight against crime and also they claim to locate the funds they have lost which I think is unreal.It will be very difficult to regain the funds.

[pey]

I have not known it is kenya based really? and I don't think it is totally decentralized. But it has different approach regarding decentralized exchange.

[Nalbo]

However they may define their decentralization, true decentralization only happens when user send and receive exchanged coins P2P on wallet to wallet basis. The decentralized exchange should only facilitate it to happen using a smart contract and use the exchange specific coin as fees.

[asriloni]

I have not known it is kenya based really? and I don't think it is totally decentralized. But it has different approach regarding decentralized exchange.

It's not based on kenya but I remember that the majority of team members of bancor have come from the Israel. It's not decentralized because the hacker has proven it but the bancor team has been putting the backdoor that make them all able to freze the token or destroy it.

[Radio-Active]

Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should not have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

I think bancor is not decentralized. It is a centralized exchange with a high liquidity. You dont need to match the price when buying or selling in bancor exchange. It is centralized because decentralized exchange can done with matching the order book by other peoples using their eth address wallet.