david wong

Hey ! I'm David, a security consultant at Cryptography Services, the crypto team of NCC Group . This is my blog about cryptography and security and other related topics that I find interesting.

Mtgox statement and transaction malleability February 2014

Mtgox, which is frozen while it is trying to fix its problems, has issued a press released explaining what is the problem

Bitcoin transactions are subject to a design issue that has been largely ignored, while known to at least a part of the Bitcoin core developers and mentioned on the BitcoinTalk forums. This defect, known as "transaction malleability" makes it possible for a third party to alter the hash of any freshly issued transaction without invalidating the signature, hence resulting in a similar transaction under a different hash. Of course only one of the two transactions can be validated. However, if the party who altered the transaction is fast enough, for example with a direct connection to different mining pools, or has even a small amount of mining power, it can easily cause the transaction hash alteration to be committed to the blockchain.

thread on bitcointalk forum

Well done! You've reached the end of my post. Now you can leave me a comment :)