• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
bitcoin hacking. hackers, Hacker illustration. Newsbtc Bitcoin news
Nexo Logo

The Bitcoin Covenant — Defense Against Bitcoin Theft !

Gautham by Gautham
6 years ago
in Uncategorized
Reading Time: 3 mins read
Advertisement

Don’t we all remember Mt Gox, the Pompeii of bitcoin which almost burnt the cryptocurrency to ground? For those who don’t, Mt Gox was a Japanese Bitcoin Exchange which held the distinction of being the largest exchange in 2013. The exchange later shut down claiming its bitcoin reserves were stolen by hackers. Investigators are still trying to figure out what happened to 650000 of the 850000 bitcoins that were allegedly stolen from the exchange.

There have been multiple reports of bitcoin stolen from wallets and vaults of various bitcoin exchanges and wallet providers since the Mt Gox fiasco. Bitcoin has been a currency of interest for many hackers for multiple reasons. The digital currency is not easy to track due to its pseudonymous nature. Even though transactions are recorded in real-time on the blockchain, associating a wallet address to its owner’s real identity takes a lot of time and resources. It can be made even harder by using the right proxy and VPN services.

In addition, bitcoin transactions once executed can’t be reversed unless the recipient manually authorizes the transaction from his wallet. So, once the hacker transfers the bitcoin from his victim’s wallet, there is no way for the victim to claim the bitcoin back. At least, that was the case until now. It may soon be different if things go according to Professor Emin Gun Sirer’s plan. Prof. Emin from Cornell University has used the scripts available in the existing bitcoin protocol to create a vault that can prevent bitcoin owners from losing their bitcoins and also help them recover the stolen bitcoins.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin Covenant Vault and Poison Transaction

The new vault, developed by Cornell University professor is called a Covenant and it uses the inbuilt bitcoin script to create special transactions. Users can transfer their bitcoin for safekeeping in a vault by using this special transaction protocol. The Covenant’s vault is similar to a regular bitcoin vault with recovery keys. However, unlike the conventional bitcoin vault, this one is more of a savings account than a deposit locker. All bitcoins in the Covenant vault are tagged by the protocol in such a way that any bitcoin spent over the blockchain from this vault can be recalled in no time. In addition, it also allows the user to burn the stolen bitcoin in case both his/her vault and recovery keys are compromised.

By default, vaults delay the transaction by enforcing a waiting period, giving ample time for the owner to take necessary remedial action in case of an unauthorized transaction. The owner can block the impending bitcoin transfer from the vault by using recovery key. The user can use this mechanism to thwart any number of attempts to transfer funds by the hacker. In a worst case scenario, when the hacker is in possession of vault key and recovery keys, the user can choose to initiate poison transaction which replicates a fraud attempt by splitting the block containing stolen bitcoin. This will then be detected by blockchain as a fraudulent transaction and the containing blocks will be disabled forever.

The Bitcoin Covenant developed by Prof. Emin also uses Bitcoin NG script and it can potentially be the solution to prevent criminals from stealing bitcoin. Once implemented, it will drastically reduce hacking attempts on bitcoin companies and wallets.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!
Ref: Bitcoin Covenants | No More Bitcoin Theft With This New Invention Says, Professor
Tags: bitcoinbitcoin covenantBitcoin NewsBlockchain TechnologyCornell UniversityEmin Gun Sirermt. goxNewstheftvault
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Gautham

Gautham

Related Posts

Bitcoin

Can This Bitcoin Ratio Have Hints For A Bottom?

2 hours ago
Greek Artist Sends Pro-Freedom Message with Assange NFT Drop

Greek Artist Sends Pro-Freedom Message with Assange NFT Drop

14 hours ago
World Of Women, screenshot from the website

Blue Chip NFTs 101: The World Of Women Collection, Including And Conquering

19 hours ago
crypto bear

Leading Crypto Exchanges See Negative Funding Rates, Have The Bears Taken Over?

22 hours ago
bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

23 hours ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

1 day ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Don’t Miss Out On Experts’ Top Crypto Picks! Gnox (GNOX), Algorand (ALGO) And VeChain (VET) Set To Lead Bullish Market

July 2, 2022

LBank Exchange Will List DEBT on July 5, 2022

July 2, 2022

LBank Exchange Will List Metavie Token (METAVIE) on July 5, 2022

July 2, 2022

Holon (HLN) Is Now Available for Trading on LBank Exchange

July 2, 2022

LBank Exchange Will List METAFASTEST (METAF) on July 1, 2022

July 2, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.