Litecoin MimbleWimble Update 2020
Litecoin MimbleWimble Update
Litecoin for some time has been creating noise about assuaging the risks associated with the transparent ledger system in Blockchain technology. With the upkeep of a transparent ledger, Blockchain provides a medium through which all the transactions can be viewed because the mechanism supports it. Keeping that in mind Litecoin has promulgated two new draft Litecoin improvement Proposals that are designed and furnished with details that would improve the privacy features of the noted network.
The authors of the proposal Andrew Yang, David Burkett and Charlie Lee are of the opinion that the transparency has had a drastic impact on the firm’s functional fungibility. In simple words Fungibility is the innate quality of a good or an asset that makes it interchangeable with another good or asset of the same quality.
Charlie Lee, founder of Litecoin had earlier pronounced plans to discover privacy technologies because the scaling issue is behind them. Now a more pressing issue is fungibility and Privacy.
Why should you know this?
Because this is the dilemma that most coins like Litecoin and Bitcoin are facing currently. It is not private because one can see who held what coin in which address in the past. And competition knows this! That said, fungibility faces risk in the long-term. The Litecoin foundation has outlined the proposal from the observation it has made. It had strong reasons to outline the drafts.
It is a possibility that personal information is collected from the respective IP address or exchanges which can be leaked and tied to the addresses which is risky. It has been observed that as and when entities link addresses to distasteful activities the taint metric can be applied. Important organizations including governments have already started blacklisting addresses.
Privacy seems to be one of the biggest priorities when it comes to improving protocol because with greater privacy comes greater functional fungibility. The Litecoin foundation has started working on integrating scalability and privacy-focussed protocol called Mimblewimble which was a tongue-tying curse from the Harry Potter series.
MimbleWimble is a protocol that came into being when an anonymous user in Bitcoin developers chatroom. MimbleWimble transactions are derived from another transaction type called confidential transactions. The confidential transactions lets the senders to encrypt the amount of coins which are to be sent using blinding factors. Blinding factors is nothing but a random value which is used to encrypt the coin amount in the transaction. The user selects the blinding factor which encrypts the amount that is being transacted, so the transactions are clouded but are verifiable therefore substantially increasing privacy.
How will MibleWimble work?
Coming back to the proposals, the authors are looking at implementing Mimblewimble protocol as the opt-in new transaction format through extension blocks’. Extension blocks are soft forks lookalikes but are much more advanced. It appears like a regular base block but there is a major difference. While a base block is cryptographically interlooped with the previous and the next base block chaining these blocks in a chronological manner; each canonical block links to the corresponding extensions block.
These extension blocks function concurrently with the main chain canonical blocks at an average interval of 2.5 minutes. The actual functionality will be to ensure that private transactions occur inside the EB. Users can then use Mimblewimble to move their coins to and from the Extension block through an integrating transaction.
The proposal has without any obfuscation stated the opt-in integration and how it will impact privacy and scalability. The proposal also handles the fusion between Extension blocks, canonical blocks and the coins.
Litecoin MimbleWimble & Extension Blocks are truly Novel
Although the move hints at averting risks, the challenge is unqiue because Extension blocks have never been implemented on a live Blockchain before. It will obviously require time, analysis and audits to ensure there are no issues or bugs. It’s best not to rush such a robust and complictaed overhaul, as there is potential danger to lose coins or inflate the supply.
The Latest Litecoin MimbleWimble Update as of 7/4/20:
Even though this daunting task has proved incredibly complex, the wait will be totally worth it. And good news! In terms of the roadmap, July 2020 is still slated for the initial block download. August is set for chain reorganization logic, and the Activation logic and the launch of the test-net is set for September 2020! This is very exciting news for all Litecoin holders.
The Future of Litecoin
Litecoin has always been a very important cryptocurrency to the space, and as we move into the future, we imagine Litecoin has the potential to be one of the most widely adopted and used cryptocurrencies in terms of mass transactions on a daily basis.
We envision Litecoin having real potential in mastering micropayments in the future of eCommerce. As most individuals choose rather to store and save bitcoin much like a commodity like gold, Litecoin has a real chance of being a cryptocurrency that is actually used as a currency, not a hybridized currency / commodity like bitcoin has become.
Litecoin is the perfect user friendly and corporate friendly cryptocurrency and is incredibly fast and secure. It has our vote!
—The DeFiRev Team
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Harvest Finance Hack Explained. Here’s how it happened.
Unscrambling the Harvest Finance hack and its aftermath
Harvest Finance, the Decentralized finance protocol was hacked for a staggering $24 million. The attack was a reminder to the crypto community that DeFi has sure risen to prominence but it has its own share of loopholes, and it is this that the attackers take advantage of.
Harvest Finance attack details
The attacker directly attacks the protocol’s liquidity pools leading the arbitrage attack using a large flash loan – a type of uncollateralized loan. The attacker later returned $2.5 million but in a mere seven-minute act, the entire hack was complete, leaving the protocol stakeholders bewildered.
In further addition to the details of the hack, the protocol revealed that the hacker manipulated prices on one money lego which is the Curve Y pool. This was done to drain another money lego farm USDT (fUSDT), farm USDC(fUSDC) multiple times.
The attacker then converted the funds to renBTC and later excited to Bitcoin. renBTC is not synthetic because it does not rely on any liquidation mechanism and it is certainly not the price of Bitcoin on Ethereum. It is a one-to-one representation of Bitcoin on Ethereum which can be redeemed for BTC at any time and in any amount.
The native token of Harvest Finance, FARM fell 54% to $101.79 when the news of the hack came forward. Following the attack, the amount of money that was locked in the protocol plummeted from $1 billion to $575 Million On October 25th. The investors were so fretful that they pulled their deposits back.
Harvest Finance acted accordingly and withdrew all the funds from the shared pools almost immediately after it had completed a fine evaluation of the attack. It began with reconstructing the processes which included DAI, USDC, USDT, TUSD as well as WBTC and renBTC. The funds are currently present in the vaults safely so that they are not exposed to further market manipulation. The hack did not involve DAI, TUSD, WBTC, and renBTC, and the depositors in these vaults were not affected.
How was the hack carried out?
The mechanics of the protocol has allowed for the execution of such an attack. Let us see how:
The investment strategies used by Harvest involves calculating the real-time value of assets that are invested in the base real-time protocols. The value of the assets is then used by the vaults to calculate the number of shares to be used to the user depositing the funds. The same value of the assets is also used when the users take out funds from the vaults.
Payout is then calculated upon the user exit. What also needs to be noticed here is that the assets inside some of the vaults are deposited into shared pools of underlying DeFi protocols. These are subject to market effects such as impermanent loss, arbitrage, and slippage. This means that its value can be manipulated through larger volumes of market trades.
The attacker knew this well and had exploited the impact of the impermanent loss of USDC and USDT inside the Y Pool of Curve.fi by manipulating the asset value to deposit funds into the vaults and obtain the shares for a beneficial price.
The aftermath of the Harvest Finance Hack
Harvest Finance’s Twitter account has been buzzing with messages and activity. The protocol has taken full responsibility for the engineering attack and has ensured that in the future such attacks will be countered and mitigated. The protocol has made it clear that formatting a disaster management plan to assist those who are affected will be the top priority for the protocol.
The protocol is investing its resources to catch hold of the scammers and has already provided a list of Bitcoin addresses of the hacker where it believes that the stolen funds may have moved. It also had taken immediate action by asking prominent exchanges like Binance, Coinbase, and Huobi to block the attacker’s addresses. It further said that there is:
“A significant amount of personally identifiable information on the attacker, who is well-known in the crypto community.” Not willing to dox the cyber-thief, Harvest Finance is now offering a $100,000 bounty “for the first person or team to reach out to the attacker”.
Harvest further tweeted that the $2.5 million returned by the hacker will be distributed to the affected depositors on a pro-rata basis using a snapshot. The attack on Harvest comes only six weeks after the attacker escaped with $8.1 million in Bitcoin from another DeFi protocol BZX, however, BZX managed to recover the funds.
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MetaMask Swap : Here’s What you Need to Know
MetaMask Swap :New feature Token Swap pitched for best trading experience in DeFi
MetaMask Swap has now officially launched. Metamask is a broswer extension and the most popular and used wallet and gateway for Ethereum. Metamask rose to great prominence this year with the ascension of Uniswap.
Now ConsenSys has recently made a big announcement – a new feature it has added in its kitty which is stated to resolve ancient issues of crypto wallets. The MetaMask Swap feature introduced by the giant aims to compare as well as swap tokens directly within MetaMask.
MetaMask has grown from strength to strength and has emerged as a wallet trusted by millions. It now has more than one million active users of its wallet services and is trusted by them to securely store their digital assets. It also is touted to offer a diverse variety of tokens at the best princess across DeFi.
Known to provide bespoke software solutions for the Decentralized Finance markets, ConsenSys, has established its foothold as the leading Ethereum Software company.
Let’s explore it in detail.
MetaMask Swap: Best Features
- The new token swaps feature will fetch quotes across several decentralized liquidity sources so that the users can get what they want at the best possible price.
- Earlier MetaMask navigation was complex and tricky. The user had to go through many decentralized exchanges or aggregators which offer a different set of tokens at different prices. In addition, every token had to be approved for trading adding to the woes. But the new token swap feature offers a platform that has an intuitively integrated user experience and streamlines all available liquidity.
- The novel platform also aims to bring in greater transparency and efficiency resulting in a better network experience.
- The feature will be initially available to users of the MetaMask extension on the Firefox browser. The concern plans to come up with versions for other browsers as well as MetaMask Mobile.
Benefits of using MetaMask Swap
Token Swap has several benefits in the offering because it has taken into account everything that worked against MetaMask in the past. Some of the most discernible benefits are:
MetaMask Swap Offers more liquidity mining
Every aggregator will interact with different liquidity sources that hold a certain amount of liquidity. By getting orders from many aggregators like Uniswap, Airswap, 1inch.exchange, Kyber, and the likes it will have access to the maximum liquidity across the DeFi ecosystem.
Best prices and tokens
Decentralized Exchange aggregators in the sector employ different trading strategies. This explains why the assets are priced differently.
But the users of the MetaMask wallet under the new feature can request prices from all the available aggregators and individual market makers. MetaMask will then ensure that every user gets what they want – the best prices across DeFi. Getting orders from different aggregators also ensures that MetaMask user is able to access all the top available tokens in DeFi.
MetaMask Swap has a great User Experience
To ensure the user doesn’t drive away user-experience is the key. Earlier the entire wallet system was a conundrum of confusion and excessive complexity. But, MetaMask has understood that this could be a problem for them as it could drive away users. Hence it has streamlined its approval process so much so that the users will now be able to access liquidity directly from the MetaMask User Interface. Previously they were required to navigate each DEX separately but this is a more combined and integrated approach that will simplify the entire process.
MetaMask Swap has Lower Gas Fees
Every single DeFi aggregator pushes to its etched out path to get the best trade. Every route it chooses has a different gas fee to ensure the transaction takes place. MetaMask through its token swap feature will get the best prices for the user. It also will get them the best aggregator which is most gas-efficient for a trade-in question.
MetaMask Swap has Fewer approvals
Earlier the users had to get the due approval for every token on multiple aggregators. This means that several user interfaces for every approval process but with MetaMask’s token swap users need to take approval only once. This directly converts into reduced gas costs and a much lighter approval process.
MetaMask has registered impressive growth figures. Just a few days ago, the noted platform surpassed the figure of a million active users of the wallet services.
With the token swap, MetaMask has excelled itself by removing several issues that barred the user from a good experience. By provisioning an optimized trade path, it has reduced complexities leading to better DeFi adoption.
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Blue Kirby, why is the crypto media silent? Decoding Blue Kirby’s exit (scam) from Twitter space
Blue Kirby, the biggest and the most aggressive promoter of Yearn. Finance has disappeared from the Crypto Twitter space.
It is reported that the real identity of Blue Kirby, who allegedly stole millions, exit scammed. He also ran this site: https://gumroad.com/guap.
Regarding the disappearance of Blue Kirby, where is the investigative journalism? Does the DeFi community not want justice? Are we simply saying this is ok?
It also seems he wasn’t very careful in that he allegedly charged $2500 per person for his secret insider information group, where people paid him via venmo, thus leaving proof to his identity.
Within the group,the real person behind the blue kirby pseudonym allegedly leaked insider information about YFI.
So the DeFi space was literally blown away when SushiSwap, assumingly performing magically, suddenly faced an event. Chef Nomi, the anonymous creator of the SushiSwap ecosystem resigned triggering a huge panic among the investors leading the major price drop. The burning question now is whether the latest update on the Blue Kirby also is a suspicious move and should the investors now short YFI.
Three days ago on October 11th, many crypto followers and users had noticed that Blue Kirby, considered as the anonymous legend of the Yearn.Finance community has suddenly deleted their account from Twitter. The worst part of it all is that the disappearance happened without any prior warning and out of the blue.
Australian crypto evangelist Alex Saunders through his twitter account said that he finds it difficult to believe what happened to $YFI. He draws a parallel with Chef Nomi’s case and how badly it hurt the DeFi at that juncture.
OFF_BLUE is the only project which is left of Blue Kirby in the truest sense. What really remains active is an Ethereum contract since October 8th and a Twitter account with 3.3K followers and protected tweets. According to experts, it will also address the disruptive segment of Non-fungible tokens.
Eminence rage, a reason for its distancing?
Blue Kirby was successful in creating his/her online persona in the early summer months. This was done by riding on the back of Andre Cronje’s crypto hedge fund Yearn. The $YFI cheerleader rose to the ranks of the DeFi Community members on Twitter especially after the community allocation of $7000 per month was done for the tireless promotion of YFI token.
But Blue Kirby’s lapse of judgment came into light especially this late September with the sloppy and bungled release of Cronje’s Eminence. And now after Blue Kirby decides to resign and disappear into nothingness, it has followed a major explosion of the EMN protocol which is based on Yearn’s open-source code. Just 2 weeks ago a wrongdoer and a miscreant planning led to the draining of $15 million in EMN liquidity due to design flaws.
The entire occurrence of disappearance could also be because Blue Kirby started getting all kinds of threats. Undoubtedly the promoter was aggressively pushing the EMN protocol since its launch, but after the hack, the popularity slowly degenerated and converted into disappointment. The moment it received a lot of fire from the community and crypto degens alike Blue Kirby distanced itself from every activity related to Yearn.Finance. In Fact it has taken the distancing very seriously by leaving yield farming telegram groups.
What Blue Kirby meant for Yearn.Finance
Blue Kirby has been the most passionate and aggressive promoter of Yearn. Finance. Right after YFI skyrocketed achieving the fastest 100x, a major rally in the crypto industry ever, there was a proposal submitted by the project contributors to pay Blue Kirby a compensation of $7000 USD every month as it had contributed majorly to its popularity.
But it also came into notice that DeFi community members have alleged that Blue Kirby had unfairly exercised influence over the Yearn ecosystem. It was further alleged that it had conducted a questionable Initial Coin Offering (ICO)for a non-fungible token (NFT) marketplace called Off-Blue.
The DeFi summer fiascos go on to show how permissionless technology, pseudonymous identities, and borderless marketplaces can be an inflammable mix. Without interests at stake, Blue Kirby had very little incentive to act in the long-term interest of the community members as per the opinion of the crypto industry members.
Response from Andre Cronje
Also doing the rounds is the resignation of Andre Cronje who created Yearn.Finance. But he has made it clear that he will stay out of crypto Twitter.
“Still here. Still building. Nothing has changed.”
Since Blue Kirby’s exit, the price of $YFI has dropped significantly.As of now, the price of YFI is $14,337 USD.