Bitcoin Developer Introduces BitStream; Alleged Crypto Hack Loses $27M; Lockbit Attacks ICBC
Summary:
A Bitcoin developer unveils BitStream, a decentralized file hosting solution incentivized by Bitcoin payments. The new platform aims to remedy the computational constraints of existing services. In other stories, a Binance-linked cryptocurrency wallet reportedly loses $27 million in Tether (USDT) in a potential hack. Finally, in a reaction to a recent ransomware attack on the Industrial and Commercial Bank of China by Lockbit, global banks are urged to tighten their cyber defenses.
A Bitcoin developer has unveiled a new decentralized system for hosting files that uses a different pricing model to tackle existing computational inefficiencies. Robin Linus, a developer from ZeroSync, published a whitepaper for "BitStream: Decentralized File Hosting Incentivized via Bitcoin Payments" on November 12. The paper suggests that adopting atomic swaps, based on Bitcoin, for file transfers could make the market for hosting content more competitive, enabling users to profit from their surplus bandwidth and storage.
Unlike cloud-based centralized services such as Google Cloud, OneDrive, and Dropbox, decentralized hosting involves breaking up data into tiny fragments stored across a network of computers or nodes. BitStream, according to Linus, proposes a more equitable revenue model within this decentralized topology. He criticized the payment structure of Nostr, a decentralized social media platform, claiming it puts undue strain on the network, leading to servers becoming swamped. Linus argues that a pay-per-download model would allow server revenue to scale as platforms burgeon to create a viable, profitable ecosystem.
Linus mentions that BitStream can be implemented in compatible payment setups like Lightning Network, Ecash, and other systems that support hash-timelock contracts. He also recently launched BitVM, a Bitcoin-powered virtual machine, purposed to improve Bitcoin's scalability.
Separately, an alleged hack of a cryptocurrency wallet connected to Binance resulted in a $27 million loss in Tether (USDT) cryptocurrency, according to on-chain analyst ZachXBT. It's unclear if the incident was a deliberate attack, but the recipient moved quickly to convert the USDT into Ether (ETH) and subsequently to Bitcoin (BTC) via various noncustodial exchanges and THORChain.
An analysis by Etherscan shows that within eight minutes, $2.7 million had been transferred to 10 new addresses, suggesting the speed of exploiters. ZachXBT observed that the affected address is tied to the Binance deployer, noting that the alleged victim had received $26 million from one of Binance's hot wallets just six days prior.
In other news, the Industrial and Commercial Bank of China (ICBC) was forced to use USB drives for its U.S Treasury trades following a ransomware attack on November 9 by cybercrime group Lockbit. Banks around the world should be alert, warns Marcus Murray, founder of cybersecurity firm Truesec, adding that global banks need to bolster their security defenses. Inline with this sentiment, ICBC says it has been strengthening its cybersecurity safeguards.
According to Chainalysis, ransom pay-outs amounted to $449 million in the first half of 2023, a spike of 62.4% from the same period in 2022.
In other developments, Michael Saylor, co-founder of MicroStrategy, predicted a potential ten-fold increase in Bitcoin demand by the end of 2024 due to a combination of factors including the Bitcoin halving and increased industry acceptance. BlackRock challenged the U.S. Securities and Exchange Commission's differential treatment of spot-crypto and crypto-futures ETF applications in a filing for a new Ether ETF.
Published At
11/13/2023 5:57:07 AM
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