IC3 plans to develop “submarine delivery” to eliminate ICO fraud

nnnWe have heard more or less of some ICO participants complaining about the unfair sale of coins, although the transaction is not successful may be caused by a network or system problems, but may also be related to the power of the miners to deal with the first deal The Even if the problem is not yet serious, but according to research, it may affect a large number of users in the future. In order to prevent this from happening, the well-known Bitcoan Research Organization IC3 plans to develop a solution called “Submarine Sent” and try to draw more attention to this issue.n
nnTranslated by: Inan
nWhen the ICO began, it looked forward to its success in the digital currency enthusiasts are patiently waiting to buy tokens.n
nOnce it started, he would spread the deal in the network, but did not pass. He tried again and again, still did not respond.n
nOther users on Reddit are angry. They are very sorry. Why are their transactions ignored? Because the project is still under the control of corruption?n
nNew research shows that the biggest threat to fair coins sales may be miners.n
nMiners are responsible for arranging transactions into each block, and they seem to have found themselves in a favorable position in the ICO, enabling them to profit from the loss of the user.n
nDefine the problemn
nThis practice is called “preemptive” and occurs when the mine detects a large deal that buys new tokens. At this time they will not deal with the transaction in a regular way, but will cut off the channel.n
nIn a high demand ICO, a trade order may mean a successful bid at a retail price and then a price increase. This is because the market demand is still there is time to sell, and miners can be in the secondary market to resell the tokens at high prices.n
nThis is a clever way, but it is difficult to implement.n
nEverything must be just right, ICO can not be sold out in a single block, nor can it be as long as people do not interested or can not sell the tokens that have too long to buy time. The ideal situation is: in 20 to 30 blocks sold out.n
nMore than that, the pool not only to re-arrange the transaction in order to find their next block in the transaction, but also to win the block game to verify the block. If they can not do this, verify the block of the pool will see the reorganization of the transaction, found fraud.n
nThere is a risk in this way, but there is evidence or speculation that this has happened.n
nIn June this year, China’s F2Pool was created to create an address through the “Status ICO” to buy tokens, and these addresses are mine is released by a block in all the addresses.n
nDeceptive transactionn
nNo matter how many people think so, but some of the ICO unfair view has aroused the interest of researchers, “Cornell University Digital Currency and Contract Plan” (IC3) proposed a potential solution.n
nThe well-known block-chain research organization outlined the ICO preemptive solution known as the “submarine sends” in a blog post published on Aug. 28.n
nICD researcher Phil Daian and Lorenz Breidenbach, Ari Juels and Florian Tramer co-authored the paper, although this solution is highly technical, but he made a more popular interpretation of the process: the submarine sent a fuzzy transaction to a new address, Making them look like other normal ether square deals.n
nSince the miner can not see the amount of the shipment, the contract being used, and the address of the recipient, they will place the order in the block and lock it out, only to be able to disclose the details of the transaction.n
nDaian told CoinDesk:n
nn”Suppose you want to buy half of the coin in the exchange with a half of the coin, and some miners before you submitted a deal, they will be cheaper to buy Taitong currency, you have to buy at a higher price, The miner then sells it and earns it. “n
nnThis is particularly serious in ICO where the sales token is set, because, according to Daian, after the ICO, “due to the limited number, the token will immediately start trading at a higher price.”n
nHe referred to the 0x ICO, saying that despite the fact that it did not seem to be the first to trade, the price of the popular tokens reached five times the initial price in the secondary market after ICO’s end.n
nDaian, like most people in the community, has little interest in the miners who are preemptive, but in the digital money world, abuse of rights is difficult to prove.n
nDaian said:n
nn”There are some examples of seemingly preoccupied miners, but it is hard to prove anything in this system that does not have a real identity.”n
nFind dangerous moleculesn
nVulcanize Inc. is a consulting and security auditor for a centric application, and its IT consultant and chief executive officer, Rick Dudley, commented on Daian’s comments that the miners would use their positions for profit.n
nFor example, he describes how to detect some of the preemptive transactions that may occur in ICO by observing “memory pools” (areas where unrecognized transactions are waiting to be added to the block). Dudley said he observed that the deal that should go into the next block was caught by some of the transactions that appeared out of thin air.n
nAlthough the pool can be a reasonable buck (may be a system vulnerability), but Dudley said that if this phenomenon continues to occur, then it clearly indicates the first deal.n
nIn the case of F2Pool, it is speculated that the pool developed software, not to rescheduled, but to reject transactions that were not on its “whitelist”, accept only transactions from specific addresses (addresses it had created) Then
nAccording to Daian, users can see these block chains and trends, especially since most F2Pool dug blocks are almost empty.n
nDaian also said it was much easier to develop software to remove the whitelist than to develop a reordering software.n
nHe said:n
nn”To do this requires a lot of technical knowledge, most miners are not programmers.”n
nnIt takes time and money to create such things because the volume of transactions is still relatively small and its return is not worth the burden of miners.n
nDaian added:n
n”If you want to quantify this problem, I can only say that the proportion of ICO affected is not very high.”n
nThe future is more serious?n
nAlthough the miners have not yet become a serious problem, but many people suspect that this is only a matter of time.n
n”The amount of trading in the network is not enough to make people urgently needed to develop a solution, but that’s really a threat,” Dudley said.n
nWhy does this kind of attack need to be focused on whether it is an urgent issue that affects a large number of users.n
nIn fact, the ability of miners (and other attackers) to manipulate the system also marks the immaturity of the market, although many people touted it as a way to subvert the venture capital industry. People are interested in finding a solution before the market matures.n
nBreidenbach, another author of the article, agrees, saying, “It is important that this will happen in the future as the volume increases.”n
nIC3 has written code to deal with preemptive transactions, although it is still experimental and not yet ready to be released to the public.n
nAs to why the researchers decided to outline their solution now, Breidenbach said:n
nn”From a research point of view, we have found this problem and want to propose a solution before it becomes serious.”n

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