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Event Review: Coin Security Chain Encounters the Largest Hacker Attack in HistoryOn the early morning of October 7th, BNBChain was attacked by hackers, involving a total amount of $700 million, including $570 million in BNB. According to Zhao Changpeng, the founder of Coin An, the main reason for the "attack" that shook the entire industry was a vulnerability on the TokenHub, a cross chain bridge

Reported by Lu Mengxue and Ran Xuedong from China Times (www.chinatimes

As part of the upgrade, enhanced features will be introduced to make cross chain bridges saferBNB chain is the most attacked chain in the first quarter of 2023, with 33 hacker attacks and exploit incidentsAccording to the blog article, the BNB Smart Chain Main Network will conduct a scheduled hard fork called "Planck" on April 12th. It is expected that this upgrade will improve the security and stability of the network

Reporter | Si LinweiBlockchain network security continues to be challenged.On October 7th Beijing time, one of the most active public chains in the world, BNBChain, was hacked, involving assets worth over $500 million

Image source @ Visual ChinaAt 23:00 Beijing time on February 7th, the Ethereum Zhejiang testing network successfully activated the Shanghai upgrade on epoch1350, taking 13 minutes to complete, and successfully simulated the withdrawal of pledged ETH for the first time. (Note: The term 'Shapella' originates from Shanghai and Capella and represents improvements in two plans, which can simplify the process of simultaneously extracting rights pledge ETH at the execution layer and Beacon chain

Summary: Even if the long-awaited ETH2.0 main network is successfully launched, the price of ETH has dropped significantly with Bitcoin

The blockchain network security incident has once again stirred up the entire coin circle.On October 7th, Beijing time, BNBChain, one of the most active public chains in the world (public blockchain, which refers to a consensus blockchain where anyone can read, send transactions, and obtain effective confirmation) incubated by the cryptocurrency exchange, was attacked by hackers

Recently, BUSD suffered a regulatory assault from the US government's SEC. The SEC sued Paxos using BUSD as an entry point for unregistered securities. Subsequently, NYDFS, the New York State Department of Financial Services, instructed Paxos to stop casting new BUSDs, and CZ also stated that "product adjustments will be made accordingly. For example, BUSD will no longer be used as the primary currency equivalent for trading.It can be foreseen that BUSD will gradually fade out of the historical stage of stable currency, and given that BUSD is the ace stable currency of BNBChain, what changes will happen to the stable currency ecosystem of BNBChain (formerly known as Anzhineng Chain) after this flag falls?The current status of stable coin ecology in BNBChainAccording to statistics from Defellama, the total market value of the stable coin ecosystem on BNBChain has exceeded $9 billion, with BUSD accounting for 53% of the market, with a market value of approximately $4.8 billion.Subsequently, USDT has a market value of approximately 3.2 billion US dollars (35%), USDC has a market value of approximately 780 million US dollars (8.67%), and some stable currencies with a market value below 100 million US dollars, such as USDDDDaiHAY.According to Paxos, BUSD can still be redeemed until at least February 2024. Although there is a buffer period of at least one year, facing the outflow of billions of dollars of stable currency, the question before us is, how will this stir up the stable currency ecosystem of BNBChain?Is it to stimulate the development of decentralized stable currency?Or strengthen the dominant position of USDT/USDC in BNBChain?For the former, CZ has responded to the suggestion of building a decentralized stable currency similar to DAI in the future, saying that at this juncture, we would prefer others to do so to make it more decentralized. We cannot do everything.Looking back at the two contestants HAY& VAI, currently with a stable currency market value of only tens of millions, seems to have an upper limit on its own track even if we optimistically imagine that such projects can carry the banner. It has developed well like DAI on Ethereum, and its stable currency market value is only about $5 billion. When converted to BNBChain, it still cannot match the scale of centralized stable currencies like BUSD.So currently, it seems that it is most reasonable for USDT/USDC to inherit the market share of the stable currency that BUSD has exited. But what we need to know here is that in fact, USDTUSDC officially does not issue native stable coins on BNBChain. Strictly speaking, BNBChain does not have native centralized US dollar stable coins, including BUSD, which is essentially a Binance PegToken. The original assets (i.e. BUSD on Ethereum) are held by the Coin Security official, and the issued BEP20Token is anchored 1:1 on BNBChain.Binance-PegTokenBTokenDue to the fact that most users only need to focus on the application experience level, they do not have a deep understanding of the specific underlying attributes of various assets. In fact, in the early stages of the launch of BNBChain (originally named BSC), in order to attract external high-quality assets such as BTCETH and stable coins, Coin An launched the Token Canal program, which is essentially similar to Wrapped Assets. Coin An officially serves as the processing center for the custody of native assets and the issuance and redemption of packaged assets.Binance-PegTokenBTokenAccording to the official mortgage reserve certificate of Coin An for BTokens, we understand that there are currently 97 BTokens, including approximately 5.4 billion ERC20BUSD reserves, corresponding to approximately 4.8 billion BEP20BUSD and other corresponding BUSDs for each chain.Previously, NYDFS emphasized that Paxos was authorized to issue BUSD on the Ethereum blockchain, but the department has not yet authorized Binance PegBUSD on any blockchain.It seems that the real motivation of NYDFS is actually BinancePeggedBUSSD, rather than concerns about whether there is 100% reserve support. After all, this piece of coin security has publicly and transparently proven reserves, and BinancePeggedBUSSD, a packaged asset, strictly speaking, is created by the on chain behavior of coin security. Therefore, should NYDFS/SEC point its finger at coin security, and USDTUSDC also has a corresponding BinancePegged, Will TetherCircle also have the same problem passively? Or is it just an excuse, essentially just a targeting?Of course, even if it is targeted, it may still be related to the original measure of coin security supporting BUSD, which automatically converts USDC, USDP, and TUSD to BUSD by default. After all, with the support of coin security, more scenarios of BUSD may lean towards BNBChain, which may lead to a misunderstanding that BinancePeggedBUSD, a packaged asset, is the only native asset.How will the exit of BUSD stir up the stable coin ecosystem of BNBChain?Now we return to the initial question of "How will the exit of BUSD stir up the stable coin ecosystem of BNBChain", and the answer seems relatively clear. For the decentralized stable coin track, it will have a certain boost, but the potential wave generated is limited; It is likely that BinancePeggedUSDTUSDC has given way to the demand for these stable currencies, and the gradual withdrawal of BUSD may also be negative for the BNBChain ecosystem.As for whether BinancePeggedUSDTUSDC will be subject to the same regulatory restrictions on "issuance" authorization, such concerns can be temporarily put aside. Although Binan does not have a compliant custody license like BitGo, the custodian of WBTC, its asset custody reserves are open and transparent, and regulation should not be so exhaustive.

On October 8th, IT Home reported that in the early morning of October 7th Beijing time, the smart contract platform BNBChain suffered two consecutive (2:26, 4:43) hacker attacks, washing out 2 million BNB coins in just 2 hours. This currency alone reached $566 million, and with other virtual assets, it could reach $718 million

Layer-1

Source:@jason_ chen998Coin An released a Greenfield white paper on storage chain last weekHowever, we have not seen a significant industry hotspot and have not reflected it in the currency price. There is not much research on the storage field,The main reason is that there are too few players in this track, mainly Arweave and Filecoin, but storage is definitely the most important track in the blockchain field.Let me first help you sort out the outline and history of the entire storage system, so that we can have a better understanding. There has always been a controversial concept in web3, where many friends divide storage into two layers: on chain storage (blockchain, IPFS, etc.) and off chain storage (AWS, local databases, and all other heterogeneous platforms).A more reasonable division should be three layers: on chain storage (blockchain), decentralized storage (IPFS, etc.), and centralized storage (AWS, local database, etc.).People often confuse decentralized storage with on chain storage. Blockchain is a distributed ledger that also has data storage capabilities. However, what we currently broadly refer to as on chain content, whether it is NFT or Mirror, does not exist on the blockchain.Because in order to ensure that data cannot be tampered with, every full node needs to be backed up. When there are 10000 miners, even to store 1MB of information, the entire network will consume 10GB, which is very uneconomical. Therefore, the proposed solution is to store the data offline, and then place the offline storage address in the blockchain for indexing. Taking NFT as an example, it can be seen that metadata is indexed to an IPFS link, and when opened, it is a folder.Here we will extend IPFS, which is a content addressed peer-to-peer distributed storage system,The opposite of content addressing is address addressing. For example, when we store a photo on a cloud drive, the computer needs to know the IP address and domain name of the photo when downloading it in order to find the data in the corresponding location. However, if the copy does not exist or the server is shut down, the file will also be lost.But perhaps someone has downloaded this photo and stored it on their computer before, but your computer doesn't know that the other person has this photo,So to solve the problem of decentralized storage, it is necessary to solve the problem of using content retrieval instead of address retrievalIn this way, you don't need to tell the computer where to get the photos, but just tell the computer what the photos you need look like, and then the computer will ask everyone who has the photos in their hands, and if there are any, send them to me.But the content can be very large, and direct brute force retrieval is very time-consuming, soAfter hashing the file content, store the hash value as the file name, which allows for very fast retrieval of only other hash values that are the same as the hash value of the photo. Once found, ask the other person to send me a copy of their photo, which will improve efficiencyThe above is the general principle of IPFS, where storage has gone through three stages: centralization, multi centralization, and decentralization.So although IPFS is similar in concept to blockchain, it itself has no direct relationship with blockchainHowever, to achieve stable operation, many users need to contribute their storage space and network to become nodes. Therefore, Filecoin, inspired by Bitcoin, is an incentive layer built on top of IPFS to incentivize nodes that store data.So what everyone must understand is thatRegardless of the way storage is ultimately stored, it still exists on physical hard drives. Decentralized storage is a sharing economy that those with idle hard drive resources can contribute to.The concept of computing power sharing has already been used in early games such as Qiyun and Jirou, but it's just a drop in the bucket.But Filecoin, after all, is a layer that was added after the emergence of IPFS to incentivize storage service providers, butArweave integrates storage and chain more thoroughlyIt specifically developed blockweave, which, compared to the traditional chain structure of blockchain, links each block to the next block and the previous two blocks: a previous block and a historical recall block. Nodes must provide access proof when generating blocks.This is different from the proof of pow calculation. By accessing older random blocks in blockweave history, new blocks can be mined for rewards. This way, miners who store rare blocks can achieve greater returns in the long term. Through this mechanism, nodes can store as much historical data as possible without consuming a lot of resources like pow,So the originality and permanence of Arweave are higher than those of Filecoin.Just now, I mentioned that blockchain itself also has information storage capabilities, and some people call blockchain a decentralized database, but in realityThe most important responsibility of blockchain is to take on the decentralized ledger for recording transactions rather than the database, and storing a large amount of data is not the core of blockchain in terms of division of responsibilities.If blockchain is compared to a computer, although it also has memory to store a small amount of data, it requires an external hard drive to store a large amount of data.Instead of just cramming everything into memory,So decentralized storage takes on the responsibility of external hard drives, as long as the stored items can interact with the computer and memory and remain unchanged.As can be seen in Etherscan, the InputData in each transaction of Ethereum is the information written into the blockchain, but it can only be field data of simple keyvalue type, so it still needs to be supplemented by an external "hard drive".The above is an explanation of the entire storage system and the principles of Filecoin and Arweave, two storage hubs,After saying this, everyone should be very deeply aware of the importance and complementarity in the existence of blockchain.So this is one of the reasons why Coin An has become an entrant. With such a large race track and such a concentrated competitive head effect, Coin An's entry into this size should cause a stir, but there has been almost no movement.in my submissionThe main reasons are:oneStorage is the lower layer far away from users, making it difficult for users to perceive and understandAnd currently, the storage is also ToB and then ToC, such as Mirror connecting to Arweave. We write in Mirror, but we are not aware of the existence of Arweave;2. On the day of the Greenfield White Paper announcementHit the big hot spot of NostrLike Wang Feng, it's quite unlucky;threeThe storage track has not yet exploded;The prerequisite for storage is to have content, but currently there is a shortage of content production sources in the web3 application layerFor example, the largest track defi is not related to the content at all, and the NFT track has some connection with the content, but it is not very big, just a small image needs to be saved,After thinking about it, there are not many applications with a large number of "content storage" scenarios like web2 that have emerged in web3, so the storage track is far from users and few.However, as the application layer of web3 explodes, a large number of UGC products with C-side interactivity will naturally emerge, leading to a large demand for content storage. Therefore, we can see the end result, but the problem is that I cannot see the milestone of reaching the end process at the moment. Here, I would like to share myInvestment logic:After analyzing the LSD track before, I deduced that as Ethereum switches to POS, low threshold pledge services such as Lido will first emerge, resulting in a large number of verification nodes. However, the centralization of operators will greatly damage Ethereum network security,So the ultimate goal is to solve the problem of operator centralizationAfter seeing the final outcome, I found three more milestones.The beacon chain of 20 has been launched, the POS of 22 has been merged, and Shanghai has been upgraded on 23,The purpose of finding milestones is to give you a psychological expectation of the moment when the final game will arrive, as well as to find a suitable opportunity to enter, otherwise the ambush will be too early and you will have to wait for several yearsAfter the upgrade and withdrawal of funds in Shanghai in 2023, it greatly stimulated the enthusiasm for pledge, thus exposing the problem of operator centralization,So the first six months of Shanghai's upgrade are a good time to enter the venueOtherwise, we will be waiting for the first milestone of 2020 in the next two years.I can see the final outcome of the deposit, but I still cannot see through the milestones in the middle. However, as the infrastructure improves and I also see itThis year, application layers such as socialfi are rolling outin my submissionPerhaps it is possible to try a small amount of layout to store related assets, which does not represent investment advice, everyone DYOR.Okay, back to Greenfield, as mentioned at the beginning, its ecosystem revolves around usersTrinity architecture: BSC chain, Greenfield, and Dapps. Coin security has a transaction chain, followed by a storage chain. Developers develop their own DAPP based on these two, and Greenfield is a side chain with a native cross chain bridge with BSC, both using BNB as tokens. This combination of fists will complete the Coin security ecosystem.So on the one hand, the storage track is large enough to attract the interest of Coin An personally, and on the other hand, it is also an important part of supplementing the Coin An ecosystem;By reading the white paper, it can be seen that the core of Greenfield is a storage chain and storage node network, which is actually similar to Arweave;The storage chain has its own governance logic and incentive system, which stores metadata, block status data, account information and permissions, billing and other data;It is worth noting that metadata exists on the chain, and there is a separate object storage system that stores object data off the chain. Taking NFT as an example, metadata is placed on the chain instead of IPFS. However, the image that occupies the most space in metadata itself is still located below the chain. This design may be based on performance and cost considerations, and when using data, the off chain object data is then referenced through the on chain metadata.BNB, as the original token of the storage chain, is used for governance and payment of GAS, which can flow between BSC and Greenfield, so this perspective is another value empowerment for BNBBut personally, I don't think BNB's price will benefit a lot from the storage track, because BNB's price is a complex, and storage empowerment is only one factor that affects the price,BNBin my submissionIt's better to directly invest in tokens that specialize in storage, because the empowerment of these tokens comes from 100% storage dividends, and of course, everything is DYOR;It is also worth noting thatThe Greenfield format is fully compatible with Ethereum EVM, making it easy for existing products to access;It is also interesting that the management of permission groups is quite detailed, which can control the permissions of each account for data operations such as adding, deleting, modifying, and querying. This is quite practicalIntroducing data integrityChallenge proof,Similar to OP, it can submit challenge transactions to nodes,Greenfield also randomly triggers challenge events, similar to sampling checks,If a challenge is accepted, the validator will check the challenged node. If the challenge is successful, the initiator will receive a reward, and the node will be punished. If the challenge fails, the data will have a freeze period and will not be challenged again,To avoid resource waste.Interestingly, it is not only used for data storage, but also supports data-based economic value creationFor example, the data permissions mentioned earlier can also cross chain to BSC and become a digital asset of BSC, which is interesting. My data is valuable, and my data can also be valuable for operations.The participants in the entire Greenfield ecosystem are as follows:BSC undertakes DAPP deployment, data resource mirroring, cross chain, and consensus;Greenfield is responsible for payment, data resources, cross chain, and consensus. Please note that as mentioned earlier, Greenfield also has its own governance mechanism, so it also has its own consensus;Then the SP node interacts with Greenfield for data;The diagram on the right shows the network structure, which is similar to the OP set of validators with elections, etc;The account system in Greenfield is independent and compatible with BSC and Ethereum in format, so it also has the conditions for Wallet to support Greenfield in the future.It is interesting that Greenfield, as a chain, was developed based on Cosmos,Cosmos' position as the leader of Layer0 seems to be getting more and more stable, and the recently popular Canto is also based on Cosmos. However, personally, I think Canto's set has a bit of Luna's shadow.The trouble with Coin Security lies in the fact that BSC is Fork Ethereum, unlike APTOS and SOLONA, which do not have their own independent technical system, making it difficult to cultivate their own developer community,This issue is also encountered by many EVM chains. As a storage chain for developers, Greenfield needs to work hard to establish developer loyalty. Therefore, Coin Security needs to first switch the stock DAPP to Greenfield before attracting incremental growth.Based on the analysis of the storage track of Coin Security Greenfield, I am personally optimistic about the storage track and look forward to the emergence of more truly available application layer products,Whether smart wallets and account abstractions are used to lower user entry barriers in infrastructure, or performance enhancing chains such as aptos and layers, the infrastructure for application layer explosion has been laid, and it is time to build a nest to attract talent.Disclaimer and RisksPlease review the disclaimer, terms, and risks to understand the legal statements, content, and risk factors of this document. In particular, you should conduct your own research (DYOR) before making any investments and be aware of the risks associated with forward-looking statements in this document.

Image source @ Visual ChinaAt 23:00 Beijing time on February 7th, the Ethereum Zhejiang testing network successfully activated the Shanghai upgrade on epoch1350, taking 13 minutes to complete, and successfully simulated the withdrawal of pledged ETH for the first time. (Note: The term 'Shapella' originates from Shanghai and Capella and represents improvements in two plans, which can simplify the process of simultaneously extracting rights pledge ETH at the execution layer and Beacon chain