Connect with us

Press Release

How to protect users assets on a blockchain – The Nebulas approach

Guest Author

Published

on

How to protect users assets on a blockchain - The Nebulas approach
Source: Pixabay

On April 26th, 2019, RChain posted a blog message stating that their president, Greg Meredith held a meeting with potential investors in Spain during the weekend of April 20, 2019. After a KYC approval, funds from the investor entered 3rd party escrow and RChain distributed 11 million RHOC tokens to the buyers wallet address. Shortly after, it was found out that the buyers fund deposit was fraudulent. Immediately following these events, RChain proceeded to contact the FBI, local Spanish authorities as well as the exchange KuCoin to block the distribution of these illegally obtained tokens. At this point, RChain which claims to be building “Ethereum 2.0” is once again on the verge of collapse. Just last month on March 5th, RChain held a discussion with its board of directors to discuss bankruptcy liquidation.

The events that took place is not a one-time occurrence within the blockchain ecosystem and in fact, blockchain technology has given birth to a new class of scammers. Looking back at cases of asset theft within the blockchain world: the DAO attack which is one of the most well known attacks resulted in the loss of over 60 million dollars worth of Ethereum; In 2018, hackers attacked IOTA and made off with approximately 4 million dollars worth of digital assets; EOS was also victim due to an exploit in a smart contract resulted in the loss of millions of dollars; the exchange Coincheck in Japan was attacked and lost a staggering $534 million dollars due to a fraudulent transfer and this is just the tip of a very large iceberg. According to Beosin [Chengdu Chain Security], there were nearly 100 global security incidents within blockchain during 2018 with a loss exceeding $2 billion USD!

As for the case with RChain, which was at one time the world’s top 30 cryptocurrency-based on market capital quickly went to the very edge of bankruptcy. Is there a root cause of asset loss within the blockchain? RChain is highly diversified in terms of technology, team and ecological framework. They have even announced ecological partnerships with Reflective Ventures and Pithia Inc.; however, one thing that cannot be ignored is that via a survey of the of RChain community, many believe that decisions from their president have caused huge losses to the project.

When looking back at theft within exchanges and other blockchain projects, the cause is not always due to an error by executive decision-makers or technical mistakes. When these issues arise, the solution for many projects is to attempt recovery, freeze the digital assets via blacklisting the fraudulent address and to work with exchanges to make it near impossible for the thief to liquidate the stolen assets.

Many of these issues have occurred due to human error and not fully ensuring the ownership of each users digital assets within the project. Basically, it stems from a lack of respect for the asset holders. However, within the blockchain world, Nebulas believes that each user is sacred and secure ownership of their digital assets is a fundamental right.

On April 15th, 2019, the Nebulas mainnet network was upgraded to version 2.0 and Nebulas NOVA was officially launched. At a press conference during the release, co-founder Aero Wang said that

“The assets of the token holders are inviolable and are required to maintain the normal operation of the Nebulas ecosystem.”

Within the Nebulas blockchain, the sole unit of governance is the address of the main network and there are three fundamental rights for all address on Nebulas:

  • First, the right to own and utilize assets on Nebulas;
  • Second, the right to initiate a proposal;
  • Third, the right to vote.

The Nebulas co-founder gave an example at the press conference:

“Suppose you have bitcoin and one day Bitcoin suffers a large scale attack. The result is that your assets have been hijacked or seized. Is this situation unfortunate? Through blockchain, assets are guaranteed by power; is this the biggest meaning?”

His belief is that this is not the case because all assets, including legal currency, are not completely protected by power.

“According to the consensus of all participants, Nebulas will guarantee and ensure that the legitimacy of assets come from consensus and not just from a single entity. If one day the Nebulas mainnet encounters a 51% attack, we would have to roll back the network to retain full legitimacy. In truth, this issue is beyond technology. My private key has not been lost, I am a legitimate participant, my assets have been hijacked and of course, I have the right to have them returned. In this scenario, technical abilities can justify a network rollback. No one within Nebulas can freeze your assets. Your assets belong to you and this right is sacred and inviolable.”

The process of creating an on-chain economy needs to be decided by all users within that network via a fair and transparent system. As of April 23, 2019, on-chain voting went live with two important proposals: The first proposal titled “Gas fee” proposes a modification to the current network transaction fee from 106 wei to 2×1010 wei which will assure network security by mitigating potential DDos attacks and will provide assurance for the future ecological development of Nebulas.

The second proposal titled “Arthur proposal” proposes a modification to all parameters/functions of Nebulas Rank [NR] and Developer Incentive Protocol [DIP]. If approved, the parameters related to NR and Developer Incentive Protocol [DIP] will be determined by community members and developers. With these modifications integrated, users will be able to better participate in the ecological development of Nebulas.

Many wonder how the Nebulas blockchain will be upgraded once proposals are approved. To complete the implementation of proposals, Nebulas will utilize its Nebulas Blockchain Runtime Environment [NBRE] which allows for the autonomous upgrade of the network without human intervention. Once proposals are approved by the global community, any revised code is reviewed, approved and essentially uploaded to the network via a signed transaction containing the improved code.

By competing upgrades in this manner, the entire community must decide together and come to a consensus which demonstrates how Nebulas considers the rights of each and every user. Moreover, in the future, community members can continue to propose more technical proposals and even have them committed without any central authority intervention which is a long-term goal of Nebulas’ decentralization plan.



Follow us on Telegram | Twitter | Facebook



AMBCrypto is not responsible for the content included in this article. Readers' discretion is required while visiting the links given in the report as AMBCrypto is not responsible for the products or services.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Press Release

BitMax.io [BTMX.com] Announces Listing of Standard Tokenization Protocol [STPT]

Guest Author

Published

on

BitMax.io [BTMX.com] Announces Listing of Standard Tokenization Protocol [STPT]
Source: Block72

BitMax.io [BTMX.com] has announced the listing of STPT, the native token of Standard Tokenization Protocol, a decentralized network for the tokenization of an asset.

Trading for the STPT/BTC and STPT/USDT pairs will be enabled on Tuesday, June 25th at 10:00 am EDT.

As part of the listing collaboration, the BitMax.io team will provide strategic support to the STP team throughout the platform launch.

Dr. George Cao, Co-Founder & CEO of BitMax.io, stated,

“STP is a necessary project for the overall space. Their focus on unlocking value and building an ecosystem of high-quality assets in this industry made our decision to list them very easy.”

With the listing of STPT, BitMax.io will strengthen its leading trading platform status by continuously adding solid projects, as well as provide more diversified global exposure to the Standard Tokenization Protocol.

About Standard Tokenization Protocol and STPT

Standard Tokenization Protocol’s STP-Standard is an open-source standard that defines how tokenized assets are generated, issued, sent, and received while complying with all necessary regulations. The protocol allows assets of all kinds to be tokenized in a way that makes them fully compliant across jurisdictions and transferable across any ERC20 platform.

Tokens built on top of the STP-Standard will use the protocol’s on-chain Compliance Validator to verify compliance with relevant regulations [i.e. KYC, AML, Accreditation, etc.] as well as any issuer-specific requirements [i.e. ownership concentration, holding periods, voting]. The Validator Committee will serve an advisory function to ensure the Compliance Validator is enforcing the most up-to-date legislation at all times.

About BitMax.io [BTMX.com]

BitMax.io is the industry’s next-generation digital asset trading platform that provides a broad range of financial products and services to both retail and institutional clients across the globe.

This innovative trading platform was founded by a group of Wall Street quant trading veterans and built upon the core values of blockchain, transparency, and reliability, to deliver high-quality client services and trading experience.

BitMax.io always strives to provide its global users with a comprehensive set of trading products. BitMax.io enabled margin trading on Feb. 14th, 2019. The margin trading function is another step forward from a product-offering perspective to better serve their dynamic trading needs.

For BitMax.io users who understand and acknowledge the risks involved in margin trading, they are now able to leverage their tradable asset for a potential higher return on investment through margin trading with sound risk management. The list of digital assets that can be traded on margin has increased from the initial four to 18 different tokens, even including BTMX.

It’s another pioneering move for BitMax.io to enable margin trading in its own native token. It expands the utility functions of BTMX, and incentivizes liquidity on the platform. [The margin trading function of BitMax.io is not available for North American markets.]

Similar to the innovative margin trading launched on BitMax.io, the introduction of this unique Volatility Card has again showcased the team’s deep understanding of the inner working of the capital market and their advanced expertise in financial product design.

BitMax.io Volatility Card is the first volatility-linked derivative product of this platform that allows global users to forecast and trade off price fluctuation of underlying major coins during preset time windows in a simple yet effective way. Named as Turtle and Bunny Card after Aesop’s fable – the Tortoise and the Hare, the card has a quasi-option structure for underlying trading pairs yet largely simplified payout form. Users can purchase a different card for the prediction of price movement either within a certain range [Turtle Card] or above a certain range [Bunny Card].

Those who predict the correct range of price movement will receive the payout equivalent to the notional value of the card. Volatility Card uses a simplified payout form without the complication of settlement and clearing issues common for real currency options. Users just simply select which card to purchase to trade on their view of the volatility of underlying asset either within or above a certain range.

It is easy to understand and use for all types of traders with the need for either very short-term momentum trading or partial risk hedging against outsized price swing in very volatile market conditions.

Conclusion

BitMax.io has experienced significant growth since its launch in 2018 and is deeply committed to providing a high-performance, client-centric trading platform to its global client base. Currently, the platform has over 180,000 registered users, with over 53,000 active community members. The listing of STPT not only broadens its trading pair scope but also helps to attract more volume and users to the platform.

For more information, follow BitMax.io on:

Website

Twitter

Reddit

Telegram

Medium

CONTACT

Continue Reading