Value overflow incident

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February 6,The Bitcoin Market is established by dwdollar as a Bitcoin currency exchange. May 22,10, BTC spent on pizza, The first, real-world transaction using Bitcoins takes place when a Jacksonville, Florida programmer, Laszlo Hanyecz, offers to pay 10, Bitcoins for a pizza on the Bitcoin Forum.

July 11,Mention of Bitcoin v0. August 15,A vulnerability in the Bitcoin system that causes Bitcoins to be improperly verified is discovered and exploited, resulting in the generation of billion Bitcoins. September 18,Bitcoin Pooled Mining operated by slusha method by which several users work collectively to mine Bitcoins and share in the benefits, mines its first block. September 29,A microtransactions exploit is discovered by kermit, precipitating the release of Version 0.

OctoberThe Financial Action Task Force, an inter-governmental group that develops and promotes policies to prevent money laundering and funding of terrorists, publishes Money Laundering Using New Payment Methods, to warn about the use of digital currencies to finance terrorist groups. OctoberThe first public version of an OpenCL miner is released.

October 16,Bitcoin Forum members Diablo-D3 and nanotube conduct the first recorded escrow trade of Bitcoins with theymos as escrow. October 17,The bitcoin-otc trading channel is registered on freenode IRC as a marketplace for over-the-counter trading of Bitcoins. October 28,Facilitated by bitcoin-otcthe first recorded short sale of Bitcoins is initiated in the form of a BTC loan from nanotube to kiba. December 7,Bitcoin Forum member doublec compiles Bitcoind, which was written for the Nokia N mobile computer.

December 8,The first portable-to-portable transaction of Bitcoins occurs when ribuck sends doublec 0. December 9,The first call option contract for Bitcoins is sold on the bitcoin-otc market. The transaction occurs between nanotube and sgomick. Part 2- Year Let's go the series of events that occur during in the history of BitCoin. July 7,Version 0. September 14,Split allocation of the generation reward used to mine Block 79, December 9,The generation difficulty exceeds 10, Stay tunned for further updates on the series.

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The initial idea for this post came to me when I noticed nowadays for every Bitcoin protocol update we might end up with an altcoin BCH, B2X, … by a group whom resist the changes to the main code repository. As a thought experiment I started to wonder, what would have happened if this fork mania code is law started way earlier. We might have had a fork of Bitcoin that anyone could generate new coins with every transaction, unlimited supply, Bitcoin unlimited?

In the noon of August 15th , an irregular bitcoin transaction was broadcasted on the network, This transaction is also known as 1d5eacbefbeb52f1ead67ea82fdacbc9. Although this transaction was valid and passed all the checks on the nodes, it had two outputs of 94 billion bitcoins each, which contradicted the hardcoded limit in Bitcoin protocol on the number of bitcoins which was set to 21 million. Within an hour of the aforementioned transaction which was included in block , a few people noticed the transaction and started to talk about it on Bitcointalk forum.

The number of created bitcoins was big enough to indicate there was a buffer overflow vulnerability. Further analysis showed that the attack has used a weak check on transaction outputs.

There had been checks for each individual output such as rejecting negative values, however there was no checks in place for the sum of the outputs. What attacker used in this transaction was to curate a transaction with two outputs of This resulted in creation of ,,, Basically the transaction used an input of 0.

Within a few hours Gavin Anderson and Satoshi Nakamoto started working on the patch to fix this vulnerability and advised the network to stop generating blocks to prevent further wasted work. The fix was to add appropriate checks in CheckTransaction function to both check the sum of all the outputs and also a sanity check to make sure no transaction can send more than 21 million bitcoins.

The fixed was pushed to the SVN repository within 5 hours of the transaction and the official update was released the next day, versioned 0. However most of the nodes were still on the bad chain, which refers to the chain that had the malicious transaction. Bootstrap Blockchain file is basically a copy of the blockchain which one can download directly and verify locally, this leads to faster synchronization of the node, as peer to peer downloading of blockchain was really slow.

The other issue with having a mixed network of good and bad nodes was that new nodes might follow the bad chain and get stuck on the affected block.

To resolve that they announced a few IP addresses of fixed updated nodes to be added as trusted nodes when syncing, this would lead to have more updated nodes, on the good chain, within the network and result in outnumbering the bad nodes. This incident could had been prevented by having the checks in place in the first place.

Tests such as unit testing on all the user input variables in protocol level or fuzzing all the variables could have revealed this vulnerability before the incident. Once there were Billion Bitcoins December 1, Categories bitcoin bitcoinacceptedhere bitcoinforks blockchain blocksize cafe django ethereum github gsm hack iphone jailbreak note2self Old unfa.