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Stellar (XLM): Casting a Shadow over Ethereum Smart Contract Operations

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As of last Monday, the entire crypto community along with Stellar holders could take a breath and enjoy seeing some of their favorite currencies bouncing off and recovering from the latest market dip. But not all news was in the spirit of redemption as it was discovered by the researchers from the National University of Singapore that Ethereum is vulnerable when it comes to operating with smart contracts. The fact that Stellar was immediately brought in to the story as a safer substitute, made us analyze the way Stellar ecosystem is operating with smart contracts. What happened to ETH smart contracts and is Stellar able to take over with its own smart contract technology?

Ethereum’s Vulnerability and Stellar Jumping In?

Discovering flaws and high-level vulnerability in ETH smart contracts was quite a shocker as well as what seemed to be a never-ending market dip that fortunately ended with last Monday when the majority of currencies started to rise back up.

A team of researchers from the National University of Singapore found out that Ethereum’s smart contracts are more than sensitive and vulnerable to hacker attacks, and the vulnerability issues they discovered on this occasion could be marked as anything but utterly safe and reliable. The thing that probably shocked them the most was the fact that one of the users was able to lock over 200$ in ETH on the Parity Project blockchain by manipulating smart contracts.

The mentioned individual who decided to manipulate the contract publically published his discovery in Github community, stating that anyone can kill your contract. He even named the conversation “Anyone Can Kill Your Contract”, which was more than intimidating.

He pointed out that he was able to adopt a contract that wasn’t even his own and then terminates it easily by manipulating with the flaws he had found while examining the way smart contracts are operating on Ethereum.

There were some suspicions among other community members that got involved in the conversation, but he was soon able to prove his point and confirm that anyone can indeed kill your contract due to the present vulnerability in form of a flaw.

The fact is that ETH smart contracts are pretty flexible, but unfortunately, flexibility, in this case, doesn’t guarantee safety. This was a massive blow for Ethereum, as this currency is one of the most appreciated digital assets in the world of blockchain technology.

The researchers from the National University of Singapore along with the researchers from UCL decided to test ETH smart contracts for vulnerability.

Testing Smart Contracts: Ethereum vs. Stellar

The researchers from the National University of Singapore and UCL then decided to download all live smart contracts that actively existed on Ethereum’s platform at the moment of testing. There were nearly a million of active live smart contracts and as they started with their testing, they have discovered that more than 34000 smart contracts showed vulnerability with over 2000 smart contracts showing high-risk vulnerability, which meant that these contracts could be manipulated “easily” by a third party that would in majority of cases represent hackers who want to take advantage of unintended issues in ETH smart contracts.

For further testing, the team has gone on by choosing 3759 different smart contracts so they would be able to check the results again. And, the results were devastating as the team was able to find major vulnerabilities and flaws within only 10 seconds of testing for positivity.

That being said, they have confirmed that they managed to prove the fact that Ethereum smart contracts could be manipulated just like with Parity Project blockchain system where smart contracts can be terminated even by individuals who don’t have ownership over certain smart contracts. It was also confirmed that smart contracts on Ethereum can be manipulated into sending funds to anonymous addresses that would most certainly belong to hackers.

That is exactly how a new opportunity arose for Stellar and its smart contracts.

Stellar Smart Contracts

Thanks to the various technological concepts implemented in Stellar’s smart contracts, these contracts are made more expressive but less flexible at the same time. Decreased flexibility, in this case, means that there is less room left for hacker attacks, which makes operating with Stellar smart contracts safe and secure.

To assure all operations with smart contracts are safe and immune to any type of vulnerability issue, Stellar is using various authentication constraints created in form of codes and encryptions.

One of the authentication processes is Multisignature verification. In case Ethereum smart contracts had this option, the bad case of vulnerability within the Parity Project could definitely be avoided. Multisignature is actually a concept that requires confirmation from a unique second party individual who has to verify the action before any action is made reality, that way avoiding hacker attacks.

To back up the initial concept in form of Multisignature, Stellar has also implemented Batching/Atomicity. Batching is a concept that allows any user to schedule multiple operations within a single smart contract. If any of these operations would fail to be delivered, all other operations would fail. To back up this process as a completely safe concept, none other operations can be added to the smart contract after the request for execution, so hackers are not able to intercept a certain smart contract and add more operations to the original smart contract.

To assure that none other transactions can be additionally added to any smart contract, Stellar has found a solution in form of Sequencing protocol. Thanks to sequencing, smart contracts would not be qualified for execution if another transaction would be added to the original existing number of transactions during the execution of smart contracts.

Finally, thanks to the time bounds, any contract that has not been executed and completed in a timely manner and within the given time frame would be marked as nonvalid.

How is Stellar doing at the Current Moment?

It seems that Stellar XLM is doing a pretty solid job with recovering from the latest market crash.

After the latest change in its price in the course of 24 hours, XLM managed to rise back to trading in the green by having a rise of 2.88% against the dollar. Due to the latest positive change in XLM’s price, one XLM can now be bought at 0.23$ per one unit.

In case Stellar, now ranked as 8th best currency on the global coin ranking list, manages to replace Ethereum with smart contract operations and drive new ICOs to Stellar network, Stellar could potentially grow to the price of around 21$ the next year around this time.

Is Stellar able to take over the spotlight over ETH smart contracts and how far could XLM go?

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Hamza Butt via Flickr

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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