IOTA: Coordinator again online, foundation promises to compensate the victim of the hack
Image by Tim Reckmann via Flickr.com. License: Creative Commons
After there was a hack of the Trinity Wallets, the IOTA Foundation switched off the central coordinator. The cryptocurrency IOTA was effectively down, transactions of IOTA token were not confirmed. Almost a month later, the coordinator resumed his work. In the meantime, IOTA KILUTTER DABID ENDEROBO takes responsibility and promises to pay damaged.
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In February the Trinity Wallet was chopped by IOTA. One of the central problems of the hack was that nobody knows how many private keys from Iota owners the hacker acquired. In order to prevent further damage, the Berlin Iota Foundation has quickly switched off the central coordinator, whereupon it was no longer possible to confirm value transactions with IOTA token.
Now there is a risk that the hacker will clear up other wallets as soon as the coordinator starts again. Therefore, the IOTA Foundation has prescribed a seventh migration phase. This found from 29. February to 7. March instead. While you should use a special tool to form IOTA transactions, which transferred your token from the old, possibly insecure account to a new, safe account with the help of a special, safe account.
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But what if the hacker also uses the migration tool and transfers other people’s tokens in themselves? To prevent this, the foundation has checked contradicting migration claims. Actually there should be a kyc check, i.e. an examination of the identity of the owner. However, many of the contradictions only resulted from an accident from the users, which is why the foundation in these cases dispensed with an identity examination in these cases.
The coordinator has been running again since yesterday and thus the IOTA tangle. Some users report that they have the old credit again in their wallet, other reports that their credit has fallen to zero. In this case you either have to wait until the coordinator has processed all outstanding transactions, or you have to new.
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So far there are no reports about losses from the process. If someone failed to use the migration tool, the foundation recommends creating a new account and transferring the tokens with a regular transaction on it. If you suspect that you were hacked, you should contact the foundation by discord.
For those who have suffered losses through the hack-overall, the Hacker Iota token worth more than two million euros-IOTA co-founder David Anderebo has a good news: he, he writes, “ensure that all victims we have identified are fully compensated.“He feels responsible for this because he was unable to prevent the incident and will use“ a significant proportion of my own credit ”to pay the victims of the hack. However, this requires the “paperwork” and an identity examination by the foundation.
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As bad as the hack was, and as bad as the light is that it throws the security practice of the IOTA developers, and as clearly as it shows how centralized IOTA is-you have to acknowledge that David otherwise and the foundation reacted in a very adult way to it. The plan, as can be dealt with with the sludgeassel, was quickly designed, communicated transparently and consistently implemented, and the reimbursement of the damage from our own pocket shows that the leaders of Iota are ready to take responsibility.
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It still has to be shown whether the cryptocurrency can therefore be strengthened from the affair. The crucial step for the cryptocurrency, which claims to be the perfect tool for a machine-to-machine economy, will be the long-awaited shutdown of the coordinator-and the demonstration that the project will be viable without switching off the tangle centrally.