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BitGrail had bugs in their exchange code, which have been known for a while. Many people reported that they deposited, say, 1 ETH and it showed as 3 ETH on the

by whyoh 9y ago

BitGrail had bugs in their exchange code, which have been known for a while. Many people reported that they deposited, say, 1 ETH and it showed as 3 ETH on the BitGrail account. Or they withdrew some XRB, but then the same amount was still on BitGrail so they could withdraw it again. Perhaps some hackers knew how to reproduce this bug and were able to exploit it, but there were obviously errors from BitGrail and they should take responsibility.

tluyben2 9y ago
Not sure about this one, but it seems many of these exchanges (and blockchain solutions in general) were built by people with very little experience in building financial transaction systems. Almost like they jumped on the bandwagon although having little more experience than being a frontend dev. If you worked with traditional financial transaction systems, HSMs, regulatory bodies and their over-the-top audits, you will have more of a sense how to design solutions like this. Might not apply here but from what you say it seems likely.
- tlrobinson 9y ago
  I’m kind of surprised there’s no open source exchange with much traction yet. I think Buttercoin was the first attempt but they pivoted then failed. It looks like there’s a few others but only a few small exchanges use them: https://www.reddit.com/r/Bitcoin/comments/37ku14/open_source_exchanges_blinktrade_vs_wlox_vs/ https://www.reddit.com/r/Bitcoin/comments/37ku14/open_source... Something that provides the core features of an exchange with focus on excellent security and proof-of-solvency built-in would give small exchanges (like BitGrail) a competitive advantage. Additional benefits would include having a standard API others could more easily write tools for, and opportunity to experiment with things like instant cross-exchange transfers using payment channel / Lightning Network. That said, it’s a pretty big undertaking. To do it well it would probably take a funded (or already successful) exchange or other company with related business model willing to do it.

by whyoh 9y ago

tluyben2 9y ago

Not sure about this one, but it seems many of these exchanges (and blockchain solutions in general) were built by people with very little experience in building financial transaction systems. Almost like they jumped on the bandwagon although having little more experience than being a frontend dev. If you worked with traditional financial transaction systems, HSMs, regulatory bodies and their over-the-top audits, you will have more of a sense how to design solutions like this. Might not apply here but from what you say it seems likely.

tlrobinson 9y ago
I’m kind of surprised there’s no open source exchange with much traction yet. I think Buttercoin was the first attempt but they pivoted then failed. It looks like there’s a few others but only a few small exchanges use them: https://www.reddit.com/r/Bitcoin/comments/37ku14/open_source_exchanges_blinktrade_vs_wlox_vs/ https://www.reddit.com/r/Bitcoin/comments/37ku14/open_source... Something that provides the core features of an exchange with focus on excellent security and proof-of-solvency built-in would give small exchanges (like BitGrail) a competitive advantage. Additional benefits would include having a standard API others could more easily write tools for, and opportunity to experiment with things like instant cross-exchange transfers using payment channel / Lightning Network. That said, it’s a pretty big undertaking. To do it well it would probably take a funded (or already successful) exchange or other company with related business model willing to do it.