Sharing Article: Binance may have accidentally burnt $40 million in SegWit migration
https://www.finder.com.au/binance-may-have-accidentally-burnt-40-million-in-segwit-migration
The vast majority of the supposedly stolen funds were moved to Bech32 addresses.
SegWit Bitcoin wallets are characterised by Bech32 addresses. SegWit is basically just an upgraded flavour of Bitcoin infrastructure that's better and more user friendly, while Bech32 addresses are the type of Bitcoin wallet that goes with SegWit.
You can immediately recognise Bech32 addresses because they start with the prefix "bc1". So whenever you see funds going into a Bitcoin address beginning with "bc1" you know someone's using SegWit.
Cryptocurrency exchanges want to upgrade to SegWit because it's all-around better, and because users will commonly request it for their own convenience, as well as the good of Bitcoin on the whole. SegWit is more efficient, so more people using it rather than the older versions can help lower Bitcoin transaction fees. see link for more
So, I just finished reading this article and I do not have enough knowledge to know if this is a likely conclusion or not, but I find it very interesting and it certainly changes the story on the "Hack".
So, I am posting here for discussion. I don't care to address the obvious bias of whether or not segwit is better, but rather the actual "hack".
Help me out technical experts, what do you think?
@whatsup,
I don't know this is a hack or whatever! Anyway I wish @ned might think about bring all power downed STEEM back to wallet before someone claim the CEO position!
Cheers~
We know what Ned brings to the table. I'd be interested in seeing someone else take the role.
Hello, @whatsup I still have a lot to learn.
I still do enjoy some articles on crypto.
I feel the same way and yet I am also proud of how much I have learned. :) It's a process.
I am glad you are reading and learning!
The article now says:
-and-
That is interesting. It seems plausible, without knowing the technical details of the migration. Could easily have been an initial reaction that jumped to the conclusion that it was hacked as well. So.... Guess we just have to wait and see.
That's a lot of effectively burnt Bitcoin haha....
That not how it works though.
Switching from legacy to segwit should not burn btc at all.....
What could of happened is that the coins got sent to wrong address.
Update:
Oh looks like I was right. Should of read the article lol
Yeah I did read the article. Looks like the update just came in. And you will note that's why I said we have to wait and see.
The bigger issue I see with hack is why?
The Bitcoin are now blacklisted.
Getting those bitcoin out are near to impossible.
Unless they are working with miners to clean the Bitcoin, those bitcoin are kinda stuck now with out some type of deals...
Posted using Partiko Android
Note the word 'effectively'
Meh. That assuming the Bitcoin sent to wrong address don't have a private key owned. But not that same as burning strictly speaking but yes I see your point.
But what ever the case, the segwit upgrade indeed did not do anything
Posted using Partiko Android
Maybe there are lessons to be learned. hahaha.
I have no idea when I'm supposed to upvote anymore. Even at the 12 minute mark you are already at a dollar.
Just checking the stats this post was best at around 10/11 minute mark. It is hard to get it right as one vote can upset what happened on the previous post. Anywhere from the 11 minute mark these days and you should be good.
Thanks!
In the first 15 minutes, it is a reverse auction. So at 0 seconds you would earn no curation rewards and moving towards 15 minutes it gets higher and higher. Everything after 15 minutes is the pure 25% level. So, it is a guess based on how many votes will come in after the 15-minute mark. I notice many autovoters have settled at about the 12 minute mark. I honestly can't say if that is good or bad.
If the biggest exchanges can get it wrong what hope does my granny ever have of being able to send crypto lol!
I feel like crypto is like hey guys we haven’t made headlines in a week, hello internet we got hacked or we broke something please write about it
Posted using Partiko iOS
Thanks for sharing this. It amazing how people still misunderstand how segwit works.
bc1 and 3 don't mean segwit it just a common standard.
if you send btc by bech32 to a nonbech32 readable wallet no problem. Just switch wallets.
A better theory would be the bech32 address were timelocked somehow and funds were locked not lost.
That or the Bitcoin sent to wron address theory.
I surprised they even wanted segwit so I really doubt this news. Jihan and Roger are both investors in Binance so segwit support sounds like a dream.
Either way you can put the doubt to rest now:
Now the bigger question is was this an inside job? Could use this excuse to subsidise lost bitcoin with their own token(liking putting water into milk).
Bc this bitcoin is now blacklisted...
I agree this situation does not seen right at all along with the fact CZ wanted rollback. Other exchange got hacked but when he suggest changing the chain?
eww...
Posted using Partiko Android
Thanks for sharing information without making me feel dumb. :) I actually understood what you said and people in crypto tend to be so quick to declare everyone else idiots.
If this is true they are doomed and so is their best friend Tron. Who the hell would trust them if they screwed up this bad, then lied about it and tried to call for a chain roll back?
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Doomed seems a bit strong, but yes... it would hurt creditability.
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