Moscow Wants an Ethereum-Based System for City Administration Services

Siamak Masnavi

Russia's capital, Moscow, is looking for blockchain experts who can build an Ethereum-based system for handling some of the city's administration services.

According to a report by Coindesk's Anna Baydakova, Russian news outlet "Open Media" said on Wednesday (August 14) that Moscow’s Department of Information Technologies has "announced an auction to build an ethereum-based system that will host the electronic services now offered to Muscovites."

The system, which will have a Proof of Authority (PoA) consensus mechanism, will allow a maximum of 1.5 million simultaneous users. The budget for building this system, which is estimated to require 60 days, is 57 million rubles (roughly, $860,000).

Examples of services to be handled on the new platform are "issuance of documents relating to property owners and residents, and allocation of slots at the city’s farmers markets." 

The City's IT department says that the main aim of this project is "to increase public confidence in Moscow’s electronic services by boosting transparency using blockchain."

This new platform will also support integration with "other blockchain experiments currently undertaken by the Moscow city government, including a voting platform dubbed Active Citizen that lets Moscow residents express preferences on matters such as locations for new bike paths and street decoration, or rating city events."

Moscow is also planning to use blockchain technology this autumn to allow, for the first time, electronic voting in three districts in the election of deputies to the Moscow City Duma on September 8. 

Featured Image Credit: Photo via Pixabay.com

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Attacker Exploits Defi Protocol to Make $360,000 in a Single Transaction

Francisco Memoria

Ab attacker has managed to exploit the decentralized finance (DeFi) protocol bZx to make over $360,000 worth of profit in a single transaction through what’s known as flash loan.

Using a decentralized trading platform dYdX, a hacker borrowed 10,000 ETH, currently worth around $2.5 million, and then sent half of it to decentralized finance lending platform Compound, and half to decentralized trading platform bZx.

Using the funds on Compound, it borrowed 112 wrapped bitcoin tokens (wBTC), ERC-20 tokens backed 1:1 by bitcoin. Using the half on bZx, the hacker entered a short position for 112 wBTC. He then sent the 112 wBTC it got from Compound to another trading platform, Uniswap, in a move that lowered the price of the tokens which made the short sale profitable.

The hacker then repaid his loan to dYdX and kept the profit from the short sale, 1,300 ether that were then worth $360,000. All of this was made in a single transaction that cost around $8 worth of transaction fees.

single transactionSource: Etherscan

The attack was pulled in a single transaction through what’s known as a flash loan. Essentially, the attacker borrowed 10,000 ETH without any collateral as he borrowed the funds in the same transition that paid them back. Through a smart contract, it was possible to pull the transaction.

Using the exploit, the hacker made over 1,000 ETH in profit and cost the bZx protocol over $620,000 in equity. bZx has made it clear users won’t suffer from the loss as it will compensate them. Those behind the project are set to release a detailed analysis at 5pm MST.

Data from DeFi Pulse shows that investors quickly started withdrawing from bZx right after the incident occurred, but started regaining confidence as soon as the project addressed the issue and clarified they wouldn’t be socializing the loss.

Featured image via Pixabay.