Topic: MtGox reports bug in system. (Read 2861 times)

Gavin Andresen    Feb 10 2014

The issues that Mt. Gox has been experiencing are due to an unfortunate interaction between Mt. Gox’s implementation of their highly customized wallet software, their customer support procedures, and their unpreparedness for transaction malleability, a technical detail that allows changes to the way transactions are identified.

Transaction malleability has been known about since 2011. In simplest of terms, it is a small window where transaction ID’s can be “renamed” before being confirmed in the blockchain. This is something that cannot be corrected overnight. Therefore, any company dealing with Bitcoin transactions and have coded their own wallet software should responsibly prepare for this possibility and include in their software a way to validate transaction ID’s. Otherwise, it can result in Bitcoin loss and headache for everyone involved.

The Bitcoin core development team has worked to limit transaction malleability. There is broad agreement in the community that this needs to be eliminated. Finding the best and most responsible solution will take time. In the meantime, users of the reference implementation do not need to be concerned. Transactions are always tracked properly by the Bitcoin-Qt/bitcoind software.

This is a good reminder that Bitcoin is still young and experimental. There are best practices to think about and account for by those who want to build companies. To help improve both the reference implementation and third party software, the Foundation is committed to working with companies to produce best practices to help improve software.

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It would be interesting to find out if other exchanges' wallets could be affected by this vulnerability.
Maybe others didn't wait for the core developers to correct it, like MtGox did, and implemented it correctly. Or maybe not?

I agree with you. All external factors that might affect price is part of speculation.

what are you on about?
the way they published it is all part of the subject, we are studying sentiment, manipulation, fundamentals, etc......
this is what they said.... that is a fact, and it is important.

All of you, uh and everything is "important to speculators", and there is some tolerance to this practise, but...
The stupidity is more debating a technical subject with and along with non-technical minded people. This is partly mtgox's fault for the way they published the issue, we're all adults here, or at least pretend so...

who me? this is important to speculators.....

why is this topic even discussed here, how stupid are you?

I wake up today to $100 prices in btc-e and gox diverting blame to the bitcoin protocol itself. That word you used is scary but apt to be true. It is the only explanation for such an absurd excuse. Its like those movies where the bad guy tries to take everyone out with himself included.

Question: Where is all the profits Gox accumulated in the past year? Surely they have enough money to pay people back.

I'll be shocked if they give back people's money at this point. They know they are going under once they allow withdrawals. What would prevent them from just taking everyone's stash and disappearing? I doubt we can rely on the kindness of their hearts. 

Crash in 2011, something to do with MtGox.
Crash in 2013, something to do with MtGox.
Crash last night, something to do with MtGox.
MtGox just like SR in a way it represents negative image about the network. It need to disappear!

fiat withdrawals have not been affected. Just do a withdrawal.

Yes, but isn't it joyful to see community members that understand the situation working hard to educate others?

Bitcoin isn't broken, Mt.Gox just didn't understand txids and are blaming Bitcoin itself for their misunderstanding.  This is no different to various novice tinkerers that lose bitcoins because they don't understand change addresses or first-bits and start blaming Bitcoin itself.

Mt. Gox Blames Bitcoin – Core Developer Greg Maxwell Responds

http://www.cryptocoinsnews.com/2014/02/10/mt-gox-blames-bitcoin-core-developer-greg-maxwell-responds/

The tl;dr for todays viewers is: mtgox' sloppy implementation of transfers is blamed on the Bitcoin protocol as a whole, taking the entire market down in the process, for their own personal gains.

http://www.reddit.com/r/Bitcoin/comments/1xieb9/keep_calm_transaction_malleability_is_not_double/

I've said it already in another thread: the USD premium came about because goxtarders believed coins were the "safer" option. Then coin withdrawal delay started, and it became clear being in btc doesn't help either. Hence: uncertainty. Hence: panic. Hence: irrational market activity, so in short: your question is based on a wrong premise ("isn't it irrational to sell now?"). Answer is: yes, but there's no alternative to this type of irrational behavior right now (if you were dumb enough to stay on gox after month and month of bad news about them)

So what does this flaw mean? Are transactions in Bitcoin not secure anymore?


They can rather sue MtGox for their Fiat, but not their btc.

You should love those guys.
Right now it's so easy to make lots of money within seconds.

So those selling on MtGox... how do then intend to get their fiat out?

and done. +60 btc as a result of karpeles asshattery. not sure if I should hate or love the guy :/

lol, I had orders to go at 350, i thought, better remove then incase they get filled during disaster. bounces back to 580.... doh!