As you can see from the tweet above, the NEM developers are building an "automated tagging system" that is probably deployed now (they said it will take 24-48 hours to deploy). As far as a I understand, this system will allow:
- identifying the stolen tokens
- tagging them as "stolen"
- building mechanism for rejecting a token which is tagged as "dirty"
I'm still pondering the ups and downs of this solution, to be honest. I mean, yes, it's a good fix on the short run. It may block the spending of the stolen tokens, as exchanges will have a tool to identify them very fast.
But on the long run, this introduces a serious problem: it affects the fungibility of the token. Or the ability to be freely exchanged. As long as there is such a "tagging" feature in the blockchain, any third party can abuse it. For instance, exchanges may pretend that some tokens are dirty and others are not. Or some user may intently tag some coins as dirty.
I don't know the technical details of the implementation, but I know human nature. And human nature work like this: if there's the tiniest chance for a loophole to be abused, it will be abused.
So, instead of hardforking, and probably create a secondary chain with the stolen tokens, they decided to keep the same chain, but with an extra "tagging" function, that will probably affect the fungibility of all the tokens from now on.
Thoughts?
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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you are right there will be abuse of this thats why they should develop a better way of dealing with those kinds of situations
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Interestingly, I read about how Bitcoin itself isn't truly fungible since your bitcoin can be traced all the way back to when they were mined. On some exchanges, bitcoin that have crossed paths with public keys that are known to have engaged in illegal activity are tagged, and bitcoin that have never touched illegal activity sell for a premium.
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It can be fixed with future update(if they get added) https://steemit.com/privacy/@sames/making-bitcoin-have-fungibility-privacy-again
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I agree with you on this... I think it willbe abused in the long run and some bad people out of hate can just tag another persons token as a bad one... They should look for an alternative.... I'm new here but I'm in love with your blog... Hope you visit mine someday... Regards
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So they're basically making a currency similar to how banks freeze your account in the case of a pending case. But it's nothing like like centralized, government-issued fiat-money at all! I promise you!
Thanks for the news, now I know a currency that I need to avoid.
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ypu I yup, even how hard they try to diminish some faults. greed people will always find a way to take advantage of a small loopwhole
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Human nature is human nature. Especially if it enriches one. I hope they could also create something to address abuses. Like a pre-requisite to tag a token as dirty.
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This is just one step into spying into the crypto world. What's to prevent governments from tagging all the tokens it's citizens have and track their movements. Honestly, it maybe a good short term goal to save people who have lost coins from hack, theft, ransom, but at what cost to the long term. Is crypto the next freedom movement that slowly dies as we cheer for the freedoms we once so desired as they are slowly stripped from this sector/movement. I hope not.
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Thanks for your commitment on Steemit with steem.supply and all the useful posts you share! I voted you as witness!
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Thanks for your support, appreciated :)
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Thanks a lot for steem.supply ! Great tool!
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Hope these new measures help to recover the loss!!
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Nice post.I respect you very much because you contribute to steemit.I will do activities like you.I would like to extend the steemit.
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I'm new on steemit and yet to fully understand token but, I do love your blog @dragosroua. Thanks for creating steem.supply. I'd sure vote you as a witness, you deserve it.
Cheers!.
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Great post. Well noted
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Whoever did the hack doesn't have to spend all they just have to convert a couple million Nem to eg Monero and that's it. They are in a safe secure and very anonymous crypto. There are also websites that mix up your coins with other people's to add even more anonymity. They might not be able to spend all or to cash out all but certainly millions if they do it right. I expect criminals to try to be criminals but a financial service company must be expected to be professional and have the highest security possible. WTF happened?
And if some Nem are now "dirty" and cannot be spent what does that say about Nem's anonymity?
What would stop a maliscious actor from tainting innocent people's Nem as being dirty?
I own some Nem by the way.
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Good job
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This move will reduce the gap between fiat and crypto even further.
What's the advantage of using cryptos if a central party decides what transaction is dirty and what is not?
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this may ruin the whole system,when it becomes automated we lose the power that we have
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wow so many problems will be solved by NEM.The app will be my new bank account staring till I get paid..haha hope my vote was accepted.Have a nice day @dragosroua
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I just did and would tell all my friends to vote you as a witness too.💖
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