An Update On The Ethereum Parity Wallet Loss

As reported prior, there was an incident with a development company, Parity, where a human error caused a potential $300 Million to be frozen. This means that if this issue isn’t solved then there will be a massive loss of ETH currency by those who were affected. This is a pressing concern for many current and potential entrants into the cryptocurrency space due to the simple human nature of loss avoidance.

The remedy proposed by some experts in the field was a fork in the Ethereum blockchain, yet this may have some other issues and so Parity is not opting to go forward with this proposed solution.

This issue is then kicked down the road for when a planned update to Ethereum will take place. The fix may come with the scheduled Constantinople update that is set to occur next year.

Since hard forks affect all parties on the Ethereum chain, the company states that they are seeking to solve the issue in a way that is in line and within the consensus of the larger ETH community.

In this case, many argue, that there is no real emergency situation unlike the situation with the collapse of the DAO, there is no major sense of urgency, simply because the funds are just locked for now.

Here’s what Martin Swende of the Ethereum Foundation had to say on the matter “I see it as an objective fact that these funds cannot be unlocked unless there is a hard fork involved.” He also went on to talk about the general conditions involved in making these decisions, describing them in the context being “more of a political than technical nature” .

There are other solutions, Vitalik Buterin, the co-founder of Ethereum, stated earlier that there is a general solution for these sorts of lock up issues, known as EIP156. He stated that certain edits could be made to the Ethereum code which would alleviate issues, allowing “for users with ether or other assets in common classes of ‘stuck’ accounts to withdraw their assets.” And the positive thing about this is it would be less invasive than a hard fork solution.

Martin Swende also had several comments to say in regards to the general security of the ETH network and being able to ward off attackers. At Devcon 3, Martin states “We are in cryptoland, we should all be very clear about where we are … It’s like Australia where anything with a heartbeat will try to kill you and if you make a mistake, you’re probably dead. Meanwhile, for attackers – they’ve never had it better.”

He had an overall optimistic yet cautious view, as attacks are dealt with and vulnerabilities are exposed the network can be all the more robust and resilient. He gave specific examples such as the shanghai attacks and how the system was able to bounce back and implement new aspects to the infrastructure to catch and prevent future attacks.

On an even brighter note, the price of ETH has gone up since the news and is now sitting at $326.84.

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By | 2017-11-09T23:27:16+00:00 November 9th, 2017|News|0 Comments

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