The Bitcoin vault

Cryptsy, shapeshift, Gatecoin, Bitfinex … What connects these crypto exchanges with each other? More than 130,000 BTC (73,818,875 US $) have been collectively in 2016 stolen from them. Hacks and Attacks on Bitcoin exchanges have become so common that it is no longer surprised when a big happened one. Although the incidence has brought a certain sensitivity with him, it makes these events but no less serious. If there is a robbery see investors still huge losses against, bad news frighten customers and new pressure on entrepreneurs who are trying new products to bring to market.

The Executive Director of CoinCenter, Jerry Brito, told that such incidents would make his job extremely difficult. The nonprofit group explored crypto currencies and provides advice in this area. He said that they are constantly forced to explain the differences between a limited middlemen and the security of the core network. Headlines such as “Bitcoin was hacked” help not present to inform the authorities about the technology entrepreneurs and consultants. Due to the unchanging nature of Bitcoin transactions and the transparency of the block chain is Bitcoin is still, unfortunately, as a target for hackers, scammers and criminals. Bitcoins block chain makes it easy to figure out how many Bitcoin store on a stock exchange. Change these facilities once the hands, it is impossible to confiscate them.

And yet that does not mean that one has the effect not done any research. To mitigate the effects of such hacks researchers Malte Moser, Ittay Eyal and Emin Gün Sirer the idea of, Bitcoin Vaults have ‘suggested. They believe that this will make it much more difficult Bitcoin raids. The main function of this idea is that it gives users the ability to recall their Bitcoin in case of hacks. The function itself is simple: A user creates a new address to Bitcoin to save, this is then called “the vault”. This address is just like any other address except one difference: the user can not spend or transfer instantly Bitcoins.

By incorporating this speed reduction, has to be something like a “second key”. The team calls this feature “recovery key” (“Rescue Key”). In the case of the owner of the hacks Vaults can roll back the transaction and so Bitcoin return to the car owner’s possession. When a user wants to spend his Bitcoin he starts with a transfer. Then at first a predetermined time remains to be seen – which specifies the creator of the Vaults – and then you can spend the Bitcoin. During this waiting period, it is possible to use the Recovery Key.

Although this solution proposed by listening for an easy way to how to stop the hacks on exchanges, but the bad media coverage makes the implementation of such a solution difficult. Since Bitcoin was originally built without transaction reversions, the core software may have to be updated to implement the new feature. Specifically, an addition to the code called CheckOutputVerify may have to be added.

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