Report: Over 400k EOS Tokens Stolen, More Than 200k Dormant EOS Accounts

EOS, the blockchain-based cryptocurrency platform for building vertically and horizontally scalable decentralized applications (dApps), was recently analyzed by cybersecurity firm, Peckshield.

According to the findings of Peckshield’s research, there are over 500,000 EOS accounts that have been opened since the crypto platform went live in June 2018. Out of more than half a million accounts, there are about 120,000 EOS accounts being controlled by certain groups, the security firm noted.

Over 200,000 EOS Accounts Are Dormant, Many Accounts Used By Bounty Hunters

The researchers also found that over 200,000 (roughly 37%) EOS accounts have been dormant since they were created. Commenting on the nature of the activity on EOS’ blockchain, Shi Huaguo, the senior security researcher at Peckshield, noted:

dApps on EOS started to explode since September, and the number grew rapidly in October. But with EOS, [dApps] are getting hotter [or being more widely used], [but then] the group-controlled accounts [have also] started to emerge.

While there are 571,000 accounts that have been created on the EOS network, cybersecurity firm Peckshield has learned that the creators of the group accounts (controlled by multiple users) are likely being used by cryptocurrency bounty hunters and “click farms.” Shi’s research team also believes that the nature of the activity associated with these types of accounts is not healthy for the long-term growth and development of the EOS platform.

27 DApps With Major Vulnerabilities, $740,000 In EOS Tokens Now Stolen

Moreover, there were 27 dApps identified by Peckshield’s research team that have serious security vulnerabilities, which were not directly related to problems with the EOS blockchain itself. Because of these security holes, users had been able to launch many attacks, resulting in the loss of over 400,00 EOS tokens (worth approximately $740,000 at press time).

Guo Yonggang, a Chinese cybersecurity expert, said most of these attacks appear to be related to several different types of vulnerabilities in EOS-based dApps, which are not linked to issues with how the EOS network was developed. Yonggang believes there could be many cyberattack groups that are actively trying to find and exploit vulnerabilities on the EOS network.

According to Yonggang, this indicates that there could be similar attacks that may be launched in the future (on the EOS network). Notably, the EOS blockchain uses the delegated proof-of-stake (DPos) consensus protocol. DPos requires that EOS token holders vote for block producers, who are then elected based on the number of votes they’ve received.

The block producers, or delegates, are responsible for validating transactions on EOS. However, this has led to mutual voting and “payoffs” between delegates, which was revealed through a leaked document. So, it appears that the EOS network is not only dealing with governance issues, but also the dApps launched on its network are vulnerable to attacks.

IOTA Partners with EVRYTHNG to Launch Distributed Ledger Tech-based IoT Applications

EVRYTHNG, an internet-of-things (IoT) platform that “activates every consumer product to make it intelligent, interactive and trackable,” has partnered with IOTA, a non-profit foundation which develops permissionless, distributed ledger technology (DLT)-based platforms.

The partnership between the two entities involves incorporating some of IOTA’s core technologies with EVRYTHNG’s Blockchain Integration Hub. After the integration of both technology platforms, consumer product brands will “have an easy way to rapidly test, scale and deploy IoT applications,” the announcement’s press release noted.

Established “Powerful Integrations” With Major Blockchain Networks

IoT applications deployed on the new platform will “deliver transparency and provenance to customers while sharing real-time data between supply chain partners,” the release stated.

Commenting on the initiative, Dominique Guinard, co-founder and Chief Technical Officer (CTO) at EVRYTHNG, remarked:

We are celebrating the one-year anniversary of our EVRYTHNG Blockchain Integration Hub. Over the past year, not only have we created powerful integrations with some of the most recognized blockchains in the world including, OriginTrail, Tierion, BLOCKv, Bitcoin and Ethereum but, we've launched real-world applications with the technology.

Guinard added: “This is why we are so excited to announce a strategic partnership with IOTA, a totally different kind of distributed ledger technology, specifically targeted at the IoT industry -- opening new opportunities for consumer product brands.”

Blockchain And IoT Projects To Attract Millions Of Dollars In Investments

“Big four” auditing and professional services firm Deloitte has estimated, through a sector-wide research study, that 42% of executives working in the manufacturing and consumer products sector intend to invest around $5 million in blockchain-related systems in the coming year. Deloitte’s report also mentioned that IoT applications will attract substantial investments which will mainly go towards funding the development of consumer protection and supply-chain management processes.

IOTA To Allow “Scalability, Interoperability, And Maturity” Of EVRYTHNG Platform

Although blockchain-enabled systems could potentially streamline many routine business processes, “industry first-movers must first overcome several challenges,” the release mentioned. For instance, there are “high costs associated with testing blockchain/DLT platforms to determine” which types of implementations will work best.

According to the release, IOTA was chosen as a platform to build on by EVRYTHNG’s developers because it potentially “brings a whole new dimension to the EVRYTHNG Blockchain Integration Hub.” The IOTA integration will “allow consumer product brands to experiment with emerging DLT capabilities while relying on the scalability, interoperability and maturity” of the EVRYTHNG platform.

Moreover, users will be able to “securely transfer data or payments without transaction fees in a trusted, permissionless, and decentralized environment.”

“Moving Beyond The Blockchain”

Holger Köther, the Director of Partnerships at the IOTA Foundation, stated:

IOTA’s distributed ledger technology moves beyond blockchain by enabling secure, feeless, data transfer and payments to advance IoT. Due to the nature of the supply chain and its lack of transparency and trust, IOTA’s Tangle technology is uniquely positioned to address these challenges. This partnership with EVRYTHNG clearly demonstrates how both consumer brands and their customers can benefit from greater transparency in the sourcing and manufacturing of consumer products.