The Effects of the ERC20 Batch Overflow Bug
Connect with us

Blogs

The Effects of the ERC20 Batch Overflow Bug

Published

on

ERC20

The cryptocurrency marketplace has always been susceptible to complicated fraudulent transactions and data-breaches, spearheaded by a number of hackers that want to exploit the potential weaknesses in the system. The most recent case is that of a bug that exposes a critical vulnerability in the ERC20 protocol. Investor circles and crypto-analysts were occupied over the last week since the news of the bug broke out, and its effects can be readily visible on the affected tokens.

The bug was first detected by PeckShield, a blockchain based security startup who found that there are critical areas of vulnerability several Ethereum smart contracts.  The bug triggers an “integer overflow”, a glitch where attackers can transfer a huge amount of tokens to any address with a zero balance. Following the discovery, several Cryptocurrency exchanges like OkEx and Huobi Pro suspended ERC20 token trading, and several tokens like UGToken, SMART, MTC, FirstCoin, GG Token, CNY Token, MESH and SMT feeling the direct effects.

A Little about the ERC20 Protocol:

The term ERC20 refers to a particular technical standard applied to smart contracts operating on the Ethereum blockchain. It allows developers to accurately predict the interaction between multiple tokens. These also include specific protocols for token addresses as well as how each token is accessed.  The number of ERC20 has risen exponentially over the last year, with EOS, Bancor, Quash being just some of the successful ones.

As detected by PeckShield, the ERC20 bug was first noticed when an unusual transaction associated with BeautyChain was recorded, where large amounts of BEC tokens were being sent to different wallet addresses.  The bug, coined as “BatchOverFlow” could be exploited by attackers to generate an extremely large amount of tokens to deposit into a normal address, making them vulnerable to price manipulations.

Effects of the Bug:

The effects of the bug could be almost instantly felt, with the news spreading like wildfire inside the crypto-community, sparking negative sentiment among investors. Many exchanges such as OKExv suspended deposits of ERC-20 Tokens almost immediately. However, many entities were not spared from the ill-effects of this bug, as evidenced by MyEtherWallet. Users of the wallet inadvertently interacted with a phishing website, which exposed their login data as well as fund information.

Other effects like Poloniex, Coinone, Hitbtc, Changelly, QUOINE etc followed suit and suspended all trading activities with ERC20 tokens. Almost all exchanges have started reviewing their security vulnerabilities as well as an internal inspection to detect the vulnerability. U.K based researchers have already concluded that about 34000 smart contracts are at a risk of infiltration, which valued to a total of $4.4 million in Ethereum, accounting for 3.4% of smart contracts on the global scale.

Final Thoughts:

Vulnerabilities in any Cryptocurrency protocol can be disastrous in the long run, providing hackers and criminals to swindle away huge sums of money from exchanges.  This is, however, not the first time a case of “integer overflow” had been detected, with Coinbase suffering the same fate almost a month ago.  At the beginning of March, Dutch security firm, VI Company had found that Coinbase users cold reward themselves with endless amounts of Ethereum. Thus, the latest case of the Batch-overflow bug should be handled effectively to ensure that such security gaps do not appear in the near future. Already exchanges and wallets are trying their best to mitigate the situation, with MyEtherWallet ‘s CEO promising a full refund if the fault is their own. No matter who the culprit is, however, repeated detections of vulnerability in Ethereum’s system can damage its long-term viability and reputation, effectively dislodging it from its podium.

For the latest cryptocurrency news, join our Telegram!

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 Christoph Scholz via Flickr

Blogs

How Can Foreigners Get Loans in Singapore

Published

on

loans for foreigners in Singapore

Foreigners who are residing in Singapore and looking for financing could do so in the form of a payday loan. It is good to find out that you can borrow the money from a reputable lender and that the interest rates are low enough for it to be a viable option. Online lenders that specialize in doing business in the country can certainly help one. These online companies are not only reliable, but their service is fast.

At the same time, many cannot afford a high standard of living. Many individuals cannot afford essentials, such as a car or a house. It can be difficult for the majority of the working class to scrape through on their basic salary. 

What defines a foreigner in Singapore? 

A foreigner in Singapore means that you are not a permanent or natural citizen there. As a foreigner, you will not be holding a Singaporean passport. The rules can differ a little for foreigners and residents. Singapore, being a multinational hub, houses many foreigners within the city. Foreigners come to Singapore for the many attractions it offers. Many people come to Singapore for Work-related purposes. A lot many also come for vacations or to visit a friend or a relative. Some foreigners come with a plan to move to Singapore permanently, attracted by their lavish lifestyle. Singapore also houses many International students attending many esteemed Singaporean Universities.  

Continue Reading

Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

Published

on

Aluna.Social

When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve, unlock their full potential, and improve trading performance.  Cryptocurrency trading can…

Continue Reading

Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

Published

on

CoinFlip

As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies like Bitcoin and Dash, to help protect their assets and hard-earned…

Continue Reading

Press Release