Ethereum broke the headlines for a number of different reasons this week. The big news of the week came as a result of a slight "complaint" that saw XRP definitively overcome Ethereum by market capitalization, making Ethereum lose the first place it has maintained for a terribly long time.
What happened here?
Ethereum is more known as the second most famous cryptocurrency in the world. In fact, by market capitalization this is no longer the case, after having sunk value and having devalued the market capitalization within Ethereum allowed XRP, the native token of Ripple technologies, to eventually overcome Ethereum and maintain the much sought after second place. This "outburst" could only be temporary, although it encourages many Ethereum investors to start asking questions.
It is a market that has really dragged cryptocurrency in recent days. Bitcoin has slipped past the vital threshold of $ 5,000.00 and even Ethereum has reached some rather shocking lows. On the other hand, XRP managed to keep a large chunk of its value and managed to avoid falling into the trap that seems to have been set by Bitcoin. As a result, XRP has managed to climb the charts and maintain some of its value, all thanks to what appears to be a speculation around the XRP and the infamous debate on Coinbase.
What I'm saying here is that Ethereum has not slipped because of any of its mistakes, Ethereum has simply fallen due to an organic market trend, while XRP has somehow managed to avoid being sucked by this, so 39; exaggeration & # 39 ;.
Bad actors on the Ethereum network
As the title suggests, we will now explore the bad actors on the Ethereum network, as it seems that recently Ethereum-based tokens have been subject to malicious activities. The Ethereum blockchain was built to be decentralized and accessible globally. Anyone can engage in Ethereum, making it a perfect platform for investors, developers and fans of general technology. It's an open source paradise for tech experts, which sounds like a good thing, right? However, this may mean that people with bad intentions can access the platform, which increases the likelihood that Ethereum products will fall victim to hacks and malicious attacks.
An example of such a group of bad actors has been reported recently, after the developers of Ethereum "Level K" have reported the discovery of a vulnerability within the Ethereum network that allows hackers to beat GasToken while accepting the Ethereum payments. Second CCN:
"By combining large quantities of GasToken while receiving ETH, it would be possible, at least in theory, that such a loyalty attack would become profitable for a bad actor.In addition, the risk is not limited to ETH, but also includes all the token based on Ethereum as those based on the ERC-721 and ERC-20 standards. "
In essence, these coin strikes allow hackers to manipulate transactions (paid by a legitimate user) that cause transaction sources (such as exchanges for example) to have to pay for the extra processing power used in the transaction, this is known as a gas on the Ethereum Network. The gas payments are then sent to the hackers, who in turn have "coined" new tokens.
It is important to note that this hack may have influenced any token created on the Ethereum network, hence not just Ethereum itself, but also token based on ERC-20 and ERC-721.
According to CCN, the report published by Level K goes into further details, referring to a case study that aims to explain this type of attack in more detail:
"In the simplest exploit scenario, Alice handles an exchange, which Bob wants to damage.Bob can initiate withdrawals to a contract address that he controls with a computationally intense fallback function.If Alice has neglected to set a reasonable gas limit, she will pay Transaction fees from his hot wallet Given enough transactions, Bob can empty Alice's funds If Alice fails to enforce Know Your Customer (KYC) policies, Bob can create numerous accounts to get around the limits withdrawal of a single account In addition, if Bob also wants to make a profit, he can count GasToken in his fallback function and make money while Alice's wallet runs out. "
Now we have to note that hacks are not only located in the Ethereum network, any cryptocurrency may be subject to hack (yes, even ultra-safe ones), however the nature of Ethereum means that these types of hacks are more common simply because there are so many tokens built on the Ethereum protocol. A change or vulnerability can impact many different tokens in practice.
As we stated, Ethereum is an open source universe, full of different products. A disadvantage of this community culture is that this means that the risk of attacks and attacks is somewhat accentuated, and the extent of these attacks can be much larger than you would expect to see on other smaller blockchain networks.
Fortunately, the tick vulnerability discovered by Level K has now been addressed:
"The exchanges potentially affected by the vulnerability were notified privately on November 13, and since it was not possible to say exactly which ones did not have protections, this notification was sent to as many exchanges as possible, all of which have now implemented patches for solve the problem."