News

Wabisabi Deanonymization Vulnerability "Disclosed"

Published

2 weeks ago

December 9, 2024

GingerWallet, the fork of WasabiWallet maintained by former zkSNACKs employees after the shut down of the Wasabi coinjoin coordinator, has received a vulnerability report from developer drkgry. This vulnerability would allow the total deanonymization of users inputs and outputs in a coinjoin round, giving a malicious coordinator the ability to completely undo any privacy gains from coinjoining by performing an active attack.

Wasabi 2.0 was a complete re-design of how Wasabi coordinated coinjoins, moving from the Zerolink framework utilizing fixed denomination mix amounts, to the Wabisabi protocol allowing dynamic multi-denomination amounts. This process involved switching from homogenous blinded tokens to register outputs to claim your coins back, to a dynamic credentials system called Keyed Verification Anonymous Credentials (KVACs). This would allow users to register blinded amounts that prevented theft of other users’ coins without revealing to the server plain-text amounts that could be correlated and prevent linking ownership of separate inputs.

When users begin participating in a round, they poll the coordinator server for information regarding the round. This returns a value in the RoundCreated parameters, called maxAmountCredentialValue. This is the highest value credential the server will issue. Each credential issuance is identifiable based on the value set here.

To save bandwidth, multiple proposed methods for clients to cross-verify this information were never implemented. This allows a malicious coordinator to give each user when they begin registering their inputs a unique maxAmountCredentialValue. In subsequent messages to the coordinator, including output registration, the coordinator could identify which user it was communicating with based on this value.

By “tagging” each user with a unique identifier in this way, a malicious coordinator can see which outputs are owned by which users, negating all privacy benefits they could have gained from coinjoining.

To my knowledge drkgry discovered this independently and disclosed it in good faith, but the members of the team who were present at zkSNACKs during the design phase of Wabisabi were absolutely aware of this issue.

“The second purpose of the round hash is to protect the clients from tagging attacks by the server, the credential issuer parameters must be identical for all credentials and other round metadata should be the same for all clients (e.g. to ensure that the server isn’t trying to influence clients to create some detectable bias in registrations).”

It was brought up in 2021 by Yuval Kogman, also known as nothingmuch, in 2021. Yuval was the developer to design what would become the Wabisabi protocol, and one of the designers in actually specifying the full protocol with ‪István András Seres‬.

One final note is the tagging vulnerability is not actually addressed without this suggestion from Yuval as well as full ownership proofs bound to actual UTXOs as proposed in his original pull request discussing tagging attacks. All of the data being sent to clients isn’t bound to a specific round ID, so a malicious coordinator is still capable of pulling a similar attack by giving users unique round IDs and simply copying the necessary data and re-assigning each unique round ID per-user before sending any messages.

This is not the only outstanding vulnerability present in the current implementation of Wasabi 2.0 created by the rest of the team cutting corners during the implementation phase.

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Bitcoin

Metaplanet makes largest Bitcoin bet, acquires nearly 620 BTC

Published

37 minutes ago

December 23, 2024

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Tokyo-listed Metaplanet has purchased another 9.5 billion yen ($60.6 million) worth of Bitcoin, pushing its holdings to 1,761.98 BTC.

Metaplanet, a publicly traded Japanese company, has acquired 619.7 Bitcoin as part of its crypto treasury strategy, paying an average of 15,330,073 yen per (BTC), with a total investment of 9.5 billion yen.

According to the company’s latest financial disclosure, Metaplanet’s total Bitcoin holdings now stand at 1,761.98 BTC, with an average purchase price of 11,846,002 yen (~$75,628) per Bitcoin. The company has spent 20.872 billion yen in total on Bitcoin acquisitions, the document reads.

The latest purchase is the largest so far for the Tokyo-headquartered company and comes just days after Metaplanet issued its 5th Series of Ordinary Bonds via private placement with EVO FUND, raising 5 billion yen (approximately $32 million).

The proceeds from this issuance, as disclosed earlier, were allocated specifically for purchasing Bitcoin. These bonds, set to mature in June 2025, carry no interest and allow for early redemption under specific conditions.

Metaplanet buys dip

The company also shared updates on its BTC Yield, a metric used to measure the growth of Bitcoin holdings relative to fully diluted shares. From Oct. 1 to Dec. 23, Metaplanet’s BTC Yield surged to 309.82%, up from 41.7% in the previous quarter.

Bitcoin itself has seen strong performance this year, climbing 120% and outperforming assets like the Nasdaq 100 and S&P 500 indices. However, it has recently pulled back from its all-time high of $108,427, trading at $97,000 after the Federal Reserve indicated only two interest rate cuts in 2025.

Despite the retreat, on-chain metrics indicate that Bitcoin is still undervalued based on its Market Value to Realized Value (MVRV-Z) score, which stands at 2.84 — below the threshold of 3.7 that historically signals an asset is overvalued.

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Altcoin Season

End of Altcoin Season? Glassnode Co-Founders Warn Alts in Danger of Lagging Behind After Last Week’s Correction

Published

4 hours ago

December 23, 2024

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The creators of the crypto analytics firm Glassnode are warning that altcoins could lose all bullish momentum following last week’s market correction.

Jan Happel and Yann Allemann, who go by the handle Negentropic on the social media platform X, tell their 63,400 followers that “altcoin season,” which they say began in late November, could come to an abrupt end after alts witnessed deep pullbacks over the last seven days.

According to the Glassnode co-founders, traders and investors will likely have a risk-off approach on altcoins unless Bitcoin recovers a key psychological price point.

“Is This the End of Altcoin Season?

Bitcoin dominance is surging after dipping below $100,000, while altcoins are losing critical supports. Dominance has risen and resumed its upward trend, signaling a stronger BTC environment.

If BTC stabilizes above $100,00, we might see a pump in altcoins now in accumulation zones. Until then, Bitcoin appears poised to lead, leaving altcoins lagging behind.”

The Bitcoin Dominance (BTC.D) chart tracks how much of the total crypto market cap belongs to BTC. In the current state of the market, a surging BTC.D suggests that altcoins are losing value faster than Bitcoin.

At time of writing, BTC.D is hovering at 59%.

Looking at Bitcoin itself, the Glassnode executives say long-term Bitcoin holders are massively unloading their holdings as other investor cohorts pick up the slack.

“The Board Keeps Shifting.

As BTC continues flowing out of exchanges during this dip, long-term holders are exiting forcefully, while short-term holders step in without hesitation.

Whales quietly accumulate, miners remain neutral, and selling pressure has merely reshuffled the board.

New hands are absorbing the sales.”

At time of writing, Bitcoin is worth $97,246.

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News

The introduction of Hydra could see Cardano surpass Ethereum with 100,000 TPS

Published

10 hours ago

December 22, 2024

admin

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Cardano’s Hydra boosts ADA past $1, positioning it as a scalable dApp hub and a potential challenger to Ethereum’s dominance.

Cardano‘s Hydra is the latest scaling solution in Cardano’s ecosystem, and it has seen ADA’s price surge past $1. While ADA’s current rate represents a 65% dip from its peak, ADA holders are 90% bullish.

Compared to Ethereum’s price, ADA is much cheaper, and the developments taking place in its ecosystem could potentially threaten Ethereum’s dominance. Cardano’s Hydra, for instance, can improve Cardano’s scalability, making it a go-to ecosystem for dApp development.

Given Ethereum’s struggles to scale its network, including its move from a PoW to a PoS protocol, Cardano’s Hydra can soon help developers build speedy dApps with high rates of mass adoption.

Cardano’s Hydra on track to elevate ADA to new heights

ADA’s current price at $0.91 is on a bullish trend that has seen ADA surge over 50% in the last 60 days. After ADA’s price languished around the $0.35 zone for months, whale activity is now rising in Cardano’s ecosystem, which has seen market watchers anticipate an additional uptick to $2 in the short term.

According to reports, an influx of over 680 transactions exceeding $1 million was registered on Cardano’s ADA as confidence in ADA’s bull run grew. Cardano’s founder has also confirmed that ADA is primed for higher highs in 2025, especially with the launch of Cardano’s Hydra.

Cardano’s Hydra is set to give developers a unique scaling tool that makes transactions on Cardano cheaper, faster, and more secure. With Ethereum as Cardano’s biggest competition, Cardano Hydra might trigger a migration of developers to Cardano in the near future.

Ethereum’s price drops to below $3,400 amid scalability concerns

Ethereum‘s price has remained sluggish in responding to the bull market even though its recent uptick past $4,000. After surging to a striking distance of $5,000 in 2021, Ethereum’s price plummeted to lows of $1,000 but has recovered amid critical resistance at the $4,000 mark.

Now, Ethereum’s price has been rejected above the $4,000 mark three times, and market watchers are less optimistic that the leading DeFi ecosystem could surge further to $5,000 – $6,00 during this bull run. Some of the obstacles that have hindered a rally on Ethereum’s price include Ethereum’s bloated network, which has registered skyrocketing network fees at peak congestion.

With the advent of scalability solutions such as Cardano’s ADA, Ethereum’s price could experience further sluggish growth. What’s more, mass adoption by institutions will require a lot more liquidity to move Ethereum’s price.

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Ethereum’s potential is fast declining this cycle and investors are looking at alternatives. However, competition from the likes of Cardano’s Hydra is concerning for ETH Holders. However, many ETH holders are switching to a new project leading a new ‘PayFi’ movement. For crypto enthusiasts who want to make swift crypto-to-fiat money payments across the globe, Remittix (RTX) is the latest solution that promises to empower businesses and crypto holders worldwide.

Remittix is fast and reliable with a simple design that allows anyone to send crypto to a recipient’s bank account without the recipient ever knowing that the payment started with crypto. The Remittix Pay API also allows businesses to accept crypto payments with a simple merchant account. Remittix is built on Ethereum, and its RTX token is now in its presale. Analysts are predicting this to become a 100x star in 2025.

To learn more about Remittix, visit the Remittix presale and join the Remittix community.

Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.

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