Crucial Ethereum Hard Fork Delayed Due to Security Breach

The Ethereum network update, which should reduce the cost of transactions, is postponed due to the security vulnerability in the smart contracts.

ChainSecurity audited Constantinople, proposed changes to the Ethereum network. According to the company, updates should reduce transaction fees. But it opens up the possibility to reentrancy attack. The principle of attack is simple: the malefactor constantly requests the withdrawal of money from a smart contract, providing false data about the status of balance on the wallet. This allows the hacker to steal a cryptocurrency, stored in the contract until all the parties fulfill the listed conditions.

Ethereum developer and hard fork coordinator Afri Shoedon confirmed the threat is real. Now, he says, developers should meet next Friday, and decide what to do next.

In October 2018, the developers deployed Constantinople on the ETH test network. They discovered several technical vulnerabilities, due to which the full launch of the hard fork was postponed to January 16, 2019. According to Afri Shoedon, the network will not be updated this week.

Constantinople primarily delivers technical updates to the Ethereum blockchain. Also, the hard fork should reduce the miners' reward from 3 to 2 ETH. The community is divided about this proposal and if the participants will not achieve a compromise, Ethereum could split into two cryptocurrencies again.

1 year ago

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