Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

Post by cocktailpeanuts » Fri, Jan 26, 2018, 10:17 PM UTC

icebraining wrote: post #212

dumbfounder wrote: post #168

Earlier quoted context omitted.

Imagine you have 2 sets of keys to your house and if you lose both then your house is not yours anymore. That's what keeping your money outside an exchange seems like to me. Exchanges are easy and familiar to people. If there was some secure way to do password recovery that was built into the currency that might be a game changer. That might be impossible by definition, not sure.

I think you definitively could make something like Keybase on Bitcoin, by using multiple third-party institutions (chosen by the user) as a fallback. When sending coins to your storage address, you'd say "anyone can use this money if they have this private key OR if they get a digitally-signed certificate from 3 out of 4 of these keys (A, B, C, D)". Those keys could belong to different institutions (or persons) that…

Post by [deleted] » Fri, Jan 26, 2018, 10:26 PM UTC

Theodores wrote: post #167

buttcoinslol wrote: post #6

Earlier quoted context omitted.

'Money ain't got no owners, only spenders' -Omar Little This quote applies to unregulated markets: drugs or cryptocurrencies.

I had to look that quote up to fully understand it, plus find the clip online, so here is the context: https://www.youtube.com/watch?v=AtoM9x-Bfu8 Omar robs drug kingpin Marlo who is at a card night, sat round the table, raking in winnings. Marlo claims the money is his, in response Omar says “Man, money ain’t got no owners, only spenders.” He then goes on to take Marlo's ring rather than just run off with the $$$. S…

Post by KMag » Fri, Jan 26, 2018, 10:49 PM UTC

KMag wrote: post #220

dumbfounder wrote: post #168

Earlier quoted context omitted.

Imagine you have 2 sets of keys to your house and if you lose both then your house is not yours anymore. That's what keeping your money outside an exchange seems like to me. Exchanges are easy and familiar to people. If there was some secure way to do password recovery that was built into the currency that might be a game changer. That might be impossible by definition, not sure.

Do you have M friends, of which you're certain at most N-1 would collaborate to steal from you and/or get hacked? In that case, you can do secure password recovery. Shamir's secret sharing algorithm can be applied over many groups other than GF(2^N). In particular, you can generate a polynomial of degree N where F(0) is your ECDSA private key, and for 1 You can even have N parties each generate their own secret rando…

Post by ThrustVectoring » Fri, Jan 26, 2018, 11:00 PM UTC

jnbiche wrote: post #234

chrononaut wrote: post #218

Earlier quoted context omitted.

Perhaps I am misunderstanding how tracking coins typically happens, but if "tainting" the coins effectively prohibits the actors from withdrawing at their perceived value, how would this work if the actor decided to send the vast majority coins to many random, arbitrary accounts? (e.g. arbitrarily sending coins to everyone who has committed a trade on some exchange in the last X days.) Would enough information be kno…

> how would this work if the actor decided to send the vast majority coins to many random, arbitrary accounts? (e.g. arbitrarily sending coins to everyone who has Then they'd have to take those coins off the blacklist, or else prepare to deal with an increasingly intractable tracking problem. Ethically, that would be the less bad option, since the thief would be deprived off the income, even if it's not returned to t…

Post by naveen99 » Fri, Jan 26, 2018, 11:04 PM UTC

ht85 wrote: post #41

gesman wrote: post #3

Conclusion: If you keep any cryptocurrency on an exchange or online service that can or is capable of controlling your private keys - MOVE all your cryptos to your own deterministic wallet YESTERDAY!

I think the biggest problem is having a single point of failure. I personally keep about half my coins on exchanges, but no exchange holds more than 10%. Storing your coins might be the best solution in theory, but in practice unless you're very savvy about the whole stack - hardware, OS, software and blockchain tech, it's hard to be sure you're not making a dumb mistake and exposing your whole stack. Even hardware w…