4 ms·

Not sure if "a whole bunch of people" equates more than 5 extremely vocal people on twitter and reddit. Tether published an audit a month ago.

stale2002 9y ago
And yet, here they are getting "hacked". What an amazing coincidence! It is almost as if people predicted literally this exact scenario.
panarky 9y ago
It's time for a new kind of bank - a transparent bank. Exchanges could publish a daily report of their bank account balances for each currency along with a daily message signed by each cold-storage key. And the transparent bank would publish a daily record of balances for each account, which ties out to the bank's balance sheet. We wouldn't need to rely on historical audits, because we could do our own automated audit every day. Transparent exchanges with transparent bank accounts would attract funds away from secretive exchanges with secret bank accounts.
- askmike 9y ago
  After the fall of mt. gox there was a huge push to get exchanges to do this. My guess is that the costs of doing this (security is quite hard: anything that can sign messages using cold storage keys can obviously also empty the cold storage, since transactions are simply signed messages) does not outweigh the demand for this. Most traders don't care (and subsequently get burned). > And the transparent bank would publish a daily record of balances for each account I think this is a terrible idea though. Even if done anonymous it gives way too much information about a market and its participants. IMO just use a merkle tree so everyone can check their own balance.
  - dlp211 9y ago
    There is no such thing as "too much information about a market".
    - askmike 9y ago
      Anyone with a lot of AUM looking to invest would beg to differ - or well, they might use the information while trading on a different exchange. Also draws a nice crosshair on your exchange, so that hackers can exactly calculate cost/benefits as well as learn from your systems (how you divide your cold storage over different addresses, how that changes over time, how money from different dummy accounts effects cold storage in what way).
- mechanikalk 9y ago
  Or we could just create a globally shared auditable ledger on which we could record transactions and balances... The bigger point here is that Tether and the issues here are not crypto problems but rather traditional money problems. When enough people just accept crypto like BTC or ETH the need for Tether, as well as USD goes away. We are just now in a transition period.
goialoq 9y ago
It was a "memo" not an "audit". https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf https://tether.to/wp-content/uploads/2017/09/Final-Tether-Co...
PKop 9y ago
Can you explain why that was convincing to you?
twayamznacct 9y ago
You mean the document that specifically noted it was not an audit? That audit?

stale2002 9y ago

And yet, here they are getting "hacked". What an amazing coincidence! It is almost as if people predicted literally this exact scenario.

panarky 9y ago

It's time for a new kind of bank - a transparent bank. Exchanges could publish a daily report of their bank account balances for each currency along with a daily message signed by each cold-storage key. And the transparent bank would publish a daily record of balances for each account, which ties out to the bank's balance sheet. We wouldn't need to rely on historical audits, because we could do our own automated audit every day. Transparent exchanges with transparent bank accounts would attract funds away from secretive exchanges with secret bank accounts.

askmike 9y ago
After the fall of mt. gox there was a huge push to get exchanges to do this. My guess is that the costs of doing this (security is quite hard: anything that can sign messages using cold storage keys can obviously also empty the cold storage, since transactions are simply signed messages) does not outweigh the demand for this. Most traders don't care (and subsequently get burned). > And the transparent bank would publish a daily record of balances for each account I think this is a terrible idea though. Even if done anonymous it gives way too much information about a market and its participants. IMO just use a merkle tree so everyone can check their own balance.
- dlp211 9y ago
  There is no such thing as "too much information about a market".
  - askmike 9y ago
    Anyone with a lot of AUM looking to invest would beg to differ - or well, they might use the information while trading on a different exchange. Also draws a nice crosshair on your exchange, so that hackers can exactly calculate cost/benefits as well as learn from your systems (how you divide your cold storage over different addresses, how that changes over time, how money from different dummy accounts effects cold storage in what way).
mechanikalk 9y ago
Or we could just create a globally shared auditable ledger on which we could record transactions and balances... The bigger point here is that Tether and the issues here are not crypto problems but rather traditional money problems. When enough people just accept crypto like BTC or ETH the need for Tether, as well as USD goes away. We are just now in a transition period.

goialoq 9y ago

It was a "memo" not an "audit". https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf https://tether.to/wp-content/uploads/2017/09/Final-Tether-Co...

PKop 9y ago

Can you explain why that was convincing to you?

twayamznacct 9y ago

You mean the document that specifically noted it was not an audit? That audit?