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Blockchain ‘Immutability’ Dispute Sparked by Ethereum Request for Reorg Contract – Featured Bitcoin News

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Just recently, a software developer and “solidity nerd” named Bunny Girl sparked heated discussions in the cryptocurrency community over a smart contract revealing a process called “Request For Reorg Contract (RFR)”. On Twitter, Bunny Girl stated that the contract “creates a mechanism that allows users to pay miners to reorganize the Ethereum blockchain”. Since then, the tweet went viral and there has been a lot of debate about whether or not blockchains are generally immutable.

Solidity Developer Unveils Smart Contract for Blockchain Reorganization for Ethereum

Conversations and debates about the immutability of the blockchain have been going on for years, and a new discussion has sparked over a tweet and smart contract posted on Github by developer Bunny Girl. On July 10, Bunny Girl stated that the smart contract aims to improve systematic chain reorganizations.

Blockchain reorganization is a controversial issue and basically occurs when a chain of recorded blocks is invalidated. Restructuring took place on various blockchains when a mining company or group of miners controls more than 51% of the hashrate.

Blockchain reorganizations force miners (who do not participate in the reorg) back to a point where they have to start again from a certain block height. It’s like resetting a recorded transaction history and re-recording it, but of course the new transactions would never be the same as the deleted ones.

Publication of NFTs to commemorate the reorgs of the Ethereum chain. Every time you request a reorg with the contract, you can mint one of these UniV3-like NFTs.

The higher the bribe for the Reorg, the rarer your NFT will be. pic.twitter.com/dVSqZ1QqZg

– Bunny Girl (@ 0xbunnygirl) July 11, 2021

Bunny Girl’s tweet explained how Ethereum developers can “codify chain reorgs” using the smart contract. “Announcing the Request For Reorg (RFR) contract,” said Bunny Girl. “This contract was inspired by a tweet from @EdgarArout. Are there any ways we can make payments to miners for reorgs in the chain? “

“Using the example of the $ 40 million Binance hack,” added Bunny Girl, “what if Binance wanted to pay a bounty to miners for reorganizing the chain to keep the hacker out of shipping? You could withdraw an amount less than the hack, e.g. $ 10 million. It turns out that all of this is possible with what Solidity has to offer. First, Binance will ask that the transaction be mined in a certain block in the past. You will attach the reward amount for this in the form of ETH. “

The software developer continued:

Next, the miner performs the time bandit. You would travel back in time to tear down a block from the past. This time, they add their “reorg” TX, which sets them up as the claimant for the reward associated with the reward. What happened to the previous request Tx? Since the state is reset, there is no request for now, is there? Quite simply, we reconstruct the state by first including the `request` tx. OLD CONDITION: Block N + 1 = [request]. NEW CONDITION: Block N = [request, reorg].

Additionally, Daniel Goldman was pursuing Bunny Girl’s RFR smart contract with an idea that put Reorgs called “Deorg” off.

“Released Deorg: A Bounty Creation Contract For Deterring Reorgs, Everything In The Chain,” Goldman tweeted. After Goldman posted his idea on Twitter, one person asked if the Deorg concept “would be a great incentive for miners to ‘hope’ for situations that could spark a battle for smart contracts between Reorg and Deorg?” Goldmann replied:

When a battle does arise, it is best for both sides to appear on the battlefield armed.

Is it misleading to describe blockchains as immutable?

The RFR thread was followed by an extremely mixed reception. “So are we just ignoring immutability now?” One person asked in response to the Bunny Girl tweet storm. Others made fun of Ethereum with memes and some mentioned previous controversies like the DAO rollback incident that caused the Ethereum Classic fork. Others claimed that once Ethereum 2.0 is finalized, it will no longer be possible with Proof-of-Stake (PoS).

In response to the immutability comment, Bunny Girl said, “This affects the time to finality. I suspect the immutability would not be compromised if people used this when the block is already deep in the chain. “

Who behaves badly in a “reorg as a service” scenario?

-The author of the software that makes it possible?
-The miner who accepts the reorganization fee?
-The party paying the fee to “buy” the Reorg?
-All of the above?
-None of the above?
-A mix of the above?

– Angela Walch (@angela_walch) July 11, 2021

Bunny Girl was also not overly friendly with some of the bitcoiners attacking the RFR thread. The developer noted that the fact that Ethereum can reorganize the chain through smart contracts is “epic” and Bitcoiners are “jealous”. The conversation also broke away from the Bunny Girl thread and brought up the debate about whether or not blockchains are immutable at all. Angela Walch, research assistant at the UCL Center for Blockchain Technologies, also discussed the topic on Twitter and spoke about the term “immutable”.

“For * 5 YEARS * I’ve been arguing that describing blockchains as * immutable * is misleading,” said Walch. “The ‘Reorg as a Service’ discussion about Ethereum is just the latest manifestation of why. Blockchains are immutable only if the people who make them * choose * not to change them. ”Walch believes the word“ immutable ”is a bad term to describe blockchain technology, and she wrote about this in her article entitled “The Path of the Blockchain Lexicon (and the Law).”

Bitcoin’s rollback in March 2013 and the claim of perpetual motion of an immutable blockchain

Walch and many others have been debating the topic for years and it was a hot debate when Binance CEO Changpeng Zhao (CZ) mentioned a reorganization after its exchange lost $ 40 million worth of BTC. Tim Swanson told Walch that he and Ernie Teo spoke about the issue in November 2015. Chris DeRose, co-host of Bitcoin Uncensored, published a paper on immutability on July 7, 2016, entitled “Why Blockchain Immutability is a Perpetual Motion Claim”. DeRose wrote at the time:

Immutability! It’s the buzzword that magically turns a simple database into the next million dollar VC fundraiser.

Additionally, in March 2013, Arvind Narayanan described a similar situation where the developers of Bitcoin (BTC) coordinated to get a large mining pool to roll back the chain to previous software after an accidental fork. Back then, Ethereum’s inventor Vitalik Buterin questioned the move, saying, “The incident raises serious questions about the nature of the Bitcoin protocol and highlights some inconvenient facts about Bitcoin’s notion of ‘decentralization’.”

Bitcoin isn’t immutable, but in 5,000 years of recorded history, it’s the best we have https://t.co/byHIMHbzLT

– Hector (@ hectorr159) July 11, 2021

There have been countless claims that Bitcoin is immutable and the word has been tossed around so much in the industry that it goes without saying and is hardly questioned. One person argued that Walch “ignored the concept of affirmations, so your assessment is wrong”. Walch replied, “I’m not ignoring them. This is orthogonal to my point of view that it is misleading to call blockchains immutable. “

There seems to be too many variables that suggest that the immutability of the blockchain is really an eternal movement. While blockchains like BTC and ETH are safe today, the rules and concepts that make changing blocks very difficult must also withstand the whims of future generations.

What do you think of the recent debate about the immutability of the blockchain? Let us know what you think on this matter in the comments below.

Tags in this story

Angela Walch, Arvind Narayanan, Blockchain Reorganization, Bunny Girl, Chris DeRose, Ethereum, Immutability, Immutable, Immutable Blockchain, Miners, Perpetual Motion Claim, PoS, PoW, Reorg, Reorg Blockchain, Request for Reorg Contract, Smart Contract, Tim Swanson, Vitalik Buterin

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Afghans Embrace Cryptocurrency Amid Financial Crisis

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In view of currency bottlenecks and bank closings, the Afghans are relying on cryptocurrency as security

* Afghans take cryptocurrency as a currency crash

* Crypto is particularly beneficial for women and people without a bank account

* Growing acceptance in failed or poorly governed countries

By Rina Chandran

(Thomson Reuters Foundation) – When Roya Mahboob started paying her employees and freelancers in Afghanistan with Bitcoin almost 10 years ago, little did she know that the digital currency for some of these women would be the ticket out of the country for some of these women after the fall of Kabul in August.

Mahboob, who co-founded the non-profit Digital Citizen Fund with her sister, taught basic computer skills to thousands of girls and women in their centers in Herat and Kabul. Women also wrote blogs and made videos that were paid for in cash.

Most girls and women didn’t have a bank account because they weren’t allowed to or because they didn’t have the documentation, so Mahboob used the informal hawala broker system to send money – until she discovered Bitcoin.

“It wasn’t feasible – or safe – to send cash to everyone, but mobile money wasn’t used as widely and options like PayPal didn’t exist. Then we heard about Bitcoin, ”Mahboob, 34, told the Thomson Reuters Foundation.

“It was easy to use, cheaper, and safer than other options. So we taught the girls how to use it and started paying our staff and contributors – we told them it was an investment in the future, ”she said.

About a third of the nearly 16,000 girls and women who learned basic computer skills at Mahboob’s centers also learned how to set up a crypto wallet and receive money – and, if they felt like it, how to trade and invest in Bitcoin and Ethereum another major cryptocurrency.

Several of these women left the country after Kabul was captured by the Taliban on Aug. 15, and some used their crypto wallets to withdraw their money, evacuate their families and settle in new lands, Mahboob said.

Cryptocurrency adoption is growing rapidly around the world, with El Salvador becoming the first country to adopt Bitcoin as legal tender last month, despite fears of excluding the poor of nations.

Even if major institutional investors have pushed Bitcoin to record highs this year, it is increasingly being adopted by those without access to the formal banking system, by those in conflict zones or in countries with poor governance, technology and financial experts.

“In failed or challenged states, it gives people an opportunity to support family members,” said Keith Carter, associate professor at the National University of Singapore School of Computing, citing Venezuela, where people bought essentials with Dogecoin after the local currency had gone into free fall.

“Cryptocurrency goes, if at all, where there is a lack of digital infrastructure and promotes the development of the infrastructure through the increasing demand for digital services,” he said.

‘GOOD OPTION’

Cryptocurrencies are shifting from the edge of the financial world to the mainstream, with large investors, corporations, and even countries adopting them as an asset and routine currency.

But it is precisely in countries like Afghanistan, where the majority have no bank accounts, where banks are closed for a long time and the currency has taken a nosedive, that their most passionate fans appear.

Like 22-year-old Farhan Hotak, who helped his family escape to Pakistan from the southern province of Zabul, he then returned to monitor his home and post vlogs on Instagram about the developing situation for his more than 20,000 followers .

Hotak got into cryptocurrency around 2019, he said after hearing about the huge profits that could be made with Bitcoin. With last year’s lockdowns to contain the coronavirus pandemic, he was online most of the time and started investing.

He made quick profits at first, then began following crypto users elsewhere and investing in newer coins like Matic, XRP, and xHunter.

“It’s a good option for me and for others like me,” said Hotak, who posted vlogs about crypto on his Instagram account and was also interested in his friends.

“I would like to set up a crypto course for Afghans – help them understand it better so that it can help them. In the meantime, I’ll be talking about crypto in every province I visit, ”he added.

While advocates of cryptocurrency point to benefits including as a hedge against political uncertainty, hyperinflation, and a way to send remittances without commissions or brokers, governments remain cautious, and China banned all crypto-related activity last month.

Researchers at the University of Technology Sydney found that almost half of all Bitcoin transactions from 2009 to 2017 were related to buying and selling illegal goods and services, with about one in three users involved in such activities.

While a report by research firm Chainalysis showed that the criminal share of all cryptocurrency activity fell from 2.1% in 2019 to 0.34% of total transaction volume last year.

Despite the challenges, the cryptocurrency has provided a lifeline for Mahboob and her former students, as well as for the growing user base of mostly young men in Afghanistan.

“I think now – why didn’t we teach more aggressively about crypto so that more Afghans have crypto wallets and can now access their money,” said Mahboob, who was named Time Magazine’s 100 Most Influential People in 2013.

“The human traffickers and kidnappers will always find a way to abuse a system. But the power of crypto is greater – especially for women and those who don’t have a bank account, it is very beneficial and so empowering, “she said.

Reporting by Rina Chandran @rinachandran; Adaptation by Zoe Tabary. Credit to Thomson Reuters

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All you need to know about smart contracts

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NEW DELHI: Smart contracts are the new technological favorites in the crypto world.
Top cryptocurrencies like Ethereum, Cardano, Polkadot and Solana have adopted them to improve their performance and competitiveness.
How do contracts help you achieve all of this? Here are some essential technical facts ”
What are smart contracts?
Smart contracts may sound like a new kind of technology, but they have been around since 1994 when Nick Szabo, an American computer scientist, developed them with the idea of ​​self-executing digital code in mind.
Basically, these are computer programs that run on blockchain and that execute contracts or agreements if the contracting parties agree on the specified conditions.
These terms are the terms of the agreement between two or more unknown parties. The best part is that executing a contract doesn’t require any paperwork or intermediaries.
Activities such as exchanging funds, stocks, valuables and even property are intelligently carried out between the parties after the requirements have been met with the help of technology. However, transactions with smart contracts are irreversible or immutable.
How does the technology work?
To understand how the technology works, it is important to understand three crucial components of smart contracts. These are the signatories, subjects, and terms.
* Signers are simply the parties who sign the contracts after agreeing to mutually agreed terms, which include the process that follows after the contract is executed.
* The subject matter is the ownership or rights over the transaction of goods and services that the party who bought or acquired a certain value receives after paying a certain amount in cryptocurrency.
Smart contracts work with the if this / then the language that is coded in the blockchain. This means that when the necessary conditions are met, the mutual agreement is automatically enforced through computer codes.
Advantages of smart contracts:
* Smart contracts are inexpensive as there are no paperwork and fees involved in initiating the process.
* You save time as there is no need for complex administrative and official processes.
* You eliminate the need for third parties or intermediaries who grant the parties great independence and decentralized platforms.
* You are efficient and trustworthy with traceable transactions and technology that consistently duplicates the documents to rescue in case of data loss.
Other uses of smart contracts:
Smart contracts are popularly known for being used in cryptocurrencies and the DeFi world. But they are also used in other areas:
* Health – It is used in health insurance to securely record the insurance amount and insurance policy, which are automatically activated and reach the hospital when the patient needs them for a medical procedure.
* Insurance – Used here to prevent fraud and to link the customer directly to their insurance contract.
Fizzy, a flight delay product launched by French insurance company AXA, automatically pays customers for a flight delay of more than two hours.
* Trade – It can be used as a substitute for manual laborious work, such as
However, smart contracts are not immune to cyber vulnerabilities, some of which are:
* Denial of Service – Repeated attacks result in the shutdown of services for the users.
* Random Access Memory Exploitation – This involves the occupation and blocking of RAM, which discourages users from using RAM-based operations.
In order to prevent such errors in the contracts, the best programming language should be used to write the smart contracts on the respective blockchain. Ethereum, for example, prefers the Solidity computer language, while NEO uses JavaScript.
(For the latest crypto news and investment tips, follow ours Cryptocurrency page and for live price updates for cryptocurrencies, Click here.)

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Cryptocurrency may be tender of choice in future, but is risky investment now | Opinion

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Cryptocurrency is taking the nation by storm, with digital currency attracting the attention of large companies and meme traders trading based on popular internet trends. Some financial advisors advise their clients to buy in, while others are not as optimistic.

Although crypto is likely to grow in importance in the future, it currently remains a risky investment as it is too unstable and overshadowed by many uncertainties.

Crypto was developed as a payment method that can bypass traditional banking systems. New crypto is created through mining, a process by which computers solve difficult math problems. There are thousands of flavors of crypto, but Bitcoin is dominant, taking almost half of the market share.

One problem with cryptocurrency is that certain coins are available indefinitely, which means that an infinite amount of crypto could be mined at infinite time. This has led to inflation in the crypto markets, which can also happen with physical currency.

This problem alone is not enough to warrant a hold or sell rating, but what is even more worrying is that cryptocurrencies are being propelled by meme trading. This trading style is named after an online community of merchants who have gathered around “stonks” like GameStop and AMC Entertainment Holdings who have supported low-value companies through the Reddit site r / wallstreetbets.

When meme traders focus on one company, they are quick to invest to drive the stock price higher. Then, when the stock appears to have peaked, investors quickly sell their holdings in a process known as “pump and dump”. This type of trading is detrimental to the markets and can result in significant losses for both large companies and individual traders. Crypto has become a preferred investment for meme traders, making it riskier and less reliable.

Another factor to consider before investing is how quickly crypto values ​​can go up and down. When Elon Musk tweeted about the Dogecoin cryptocurrency, the price fluctuated sharply. This is a bad sign for cryptocurrency coins because if negative news got out about them, their prices could go down and the investment would be lost.

Some companies are optimistic about crypto as an investment, including the El Salvador government, which introduced Bitcoin as its national currency. The move showed that cryptocurrencies are likely to be widely used in the future, but it also highlighted some of the risks associated with investing at this early stage.

When El Salvador started using Bitcoin, the government had to take its e-wallet offline for several hours when the server was overloaded, which revealed a bug in the system. Crypto is only good if it can be used, and if the servers are overloaded it cannot be used. In the future, this problem could be resolved, but until then, crypto is still an unreliable and dangerous investment.

Another major problem with crypto platforms was uncovered when they mistakenly gave users nearly $ 90 million worth of various crypto coins during a routine update in late September. The error was caused by a bug in the computer code and prompted the workers to recover the lost coins.

Both incidents show that this technology is too new and unreliable to be a safe investment. There are thousands of other investment options with far less risk and almost the same return, including stocks and options.

For now, investors should stay away from crypto, but it will become a viable investment in the future. Technology is improving rapidly and culture is changing. One day cash may be a thing of the past and crypto may be the king of currencies, but that day is not here yet.

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