Blockchain development in Venezuela – when cryptocurrency is more reliable than the national currency
As is known, the situation with the national currency of the Latin American state of Venezuela (Bolivar) is not bright. According to the IMF, inflation in the country in 2018 reached 1,000,000%. And this is not the limit: experts predict an even more rapid fall of the bolivar. At least 10 times by the end of 2019. Prices for basic foodstuffs in the republic are doubled every month. In such conditions, trade in cryptocurrencies with their high volatility is almost the only way to stay with their own. Another solution invests in the dollar.
But here, too, Venezuelans are disappointed: there is practically no hard currency in the country, and you can buy it on the black market only at a price 900 times higher than the official rate.
In these circumstances, the government puts forward a number of ideas to save the economy. In particular, President Nicolas Maduro introduced the national cryptocurrency El Petro. According to legend, the coin is provided with oil, but Venezuelans are used to not trust the ruling elite. In fact, the entire project El Petro is worth 3.3 million dollars. That is how many tokens collected at auction. The coin is missing on the famous stock exchanges. And the news that pensions, salaries and social benefits are tied to a Venezuelan digital asset has only led to confusion and street protests.
Against the backdrop of a bolivar and El Petro rolling into the abyss, Bitcoin looks the height of stability. Therefore, it is not surprising that at the local site LocalBitcoins, trading was conducted at the 1974 BTC. Only in one week, the volume of trading on the stock exchange grew by 11%. It is possible that hacking a popular site (if such a place took place) could lead the country to default.
Testing wallets for cybernetic vulnerabilities helped blockchain development
Distributed data is not always about reliability. “White hackers” confirmed this thesis during the world profile conference Chaos Communication Congress (Germany). The IT vulnerability team conducted demonstration cyber-attacks, during which a number of critical errors were discovered in the Ledger and Trezor wallets.
In particular, hackers noted that the problems lie in the software architecture, as well as the firmware and web interface.
Wallets have been completely hacked. A mnemonic kernel and PIN code were extracted from RAM Trezor. Specialists were able to remotely sign a transaction, as well as intercept the PIN code of the Ledger Blue cryptocurrency wallet. Ledger Nano S loader also fell under the onslaught of hackers. This says only one thing: creators of projects on blockchain do not always care about data security. During the conference, a number of program code improvements were proposed.
It should only be glad for Ledger and Trezor that the “hackers” turned out to be information security gurus who taught companies a lesson. Swindlers in the industry, as you know, are also missing. In December 2018, it became known that a group of unidentified individuals had stolen over 200 Bitcoins from Electrum wallets.