Topic: Transaction Malleability is all BS (Read 1308 times)

because, from a programmer's perspective, this is no pressing issue.
You don't usually expect people implementing custom bitcoin wallets to be retarded
(no offense at the programmers here but if this has been a known issue for years you'd think they would at least have considered if this might be a problem and implement code that can deal with it ( which can be done without too many problems))

How is money lost if they do not sell?

The real question is, why was it left unresolved by the foundation for all these years of they already knew about it? Just look how much money has been lost from poor investors

When the fog clears, everyone will realize and start questioning exactly how the TM issue affected Gox and why are they implementing their own hash protocol into their system for no apparent reason. They are basically trying to improve something that doesn't need to be improved (if it ain't broke, don't fix it). When Gox resumes their services, prices will be low, people will then realize that nothing really happened and nothing positive came from it.. only the price if Bitcoin has dropped significantly and Gox will be the only one that has pocketed from the crash that they induced.

The real issue here is we don't trust any of our major exchanges now.

The markets want blood so they are getting blood.
On the upside this kind of is an indicator that the bearish trend could reverse in the near future.

As for Transaction Malleability I'll try to illustrate the issue in the most basic terms to show just how ridiculous it is:

Assume I am doing netbanking and sending 100 USD from account a to b for which I get a transaction Id of 1

acc 1234567  send 100.00 USD to acc 7654321 tx_id = 1

Now while this transaction is processing some malicious entity modifies your transaction to show this

acc 1234567  send 100.00 USD to acc 7654321 tx_id = 01

This is the issue. The exchange can't discern between 1 and 01 so it thinks no transaction happened.
They can't change the accounts nor the amount. All they can do is add leading zeroes.

If your code can't handle that then obviously you are in the wrong business

This exploit/bug has been known to all throughout the community since the beginning of time. Let's get the facts straight here, yes the exploit/bug exist but it isn't even remotely a risk to the Bitcoin protocol. Mt. Gox and other exchanges blaming the Bitcoin protocol due to the transaction malleability issue are basically using that excuse as a scapegoat to hide behind the real issue at play. If the real reason why Mt. Gox suspended all withdrawal operations was because of the "TM" issue, then it isn't the fault of the Bitcoin protocol but the fault lies within Mt.Gox themselves for not securing their transaction system.

If you left your real life wallet with hundreds of dollars inside on a coffee shop table and someone steals it, you can't blame your wallet, let alone the person, for running off with your money. You'd only blame yourself for not taking precautions to protect your money. Mt.Gox is doing the exact opposite by blaming the wallet thief. For something that existed since the beginning of Bitcoin and is now being brought up as a major exploit followed by FUD is just total bullshizzle in my humble opinion. If Mt.Gox was really in trouble, they'd suspend all trading activity and not just withdrawals. I'm not saying they aren't though, it is obvious that Mt.Gox is creating a state of panic for all their customers so they can bring the price of Bitcoins down so they can cover their capital (at the expense of their members).

All other exchanges or major sites incorporating the use of Bitcoins that follows this trend is just trying to follow Mt.Gox's get richer, quicker scheme. To all that is holding onto their Bitcoins, keep doing just that. If you sell now, I can say with certainty that you will regret your decision to sell at this state of panic. For those looking to buy into Bitcoins, this seems like a great opportunity but do it anywhere except for Mt.Gox because you won't be able to withdraw your investment. Bitcoin will go back up, I'm not only 99.9% sure of this.. I am 100% sure with a few months time, the market will correct itself. As for me, I'm all in it for the coins.

P.S - I wish that currency exchange monitors would just drop Mt.Gox from the market. Their prices are not even legit. People/bots are basically trading imaginary coins at this moment. I hope in the future, Mt.Gox will not be looked upon as one of the major Bitcoin exchanges, this will further decentralize Bitcoin in terms of value that is mostly controlled by Gox so other exchanges can offer competitive pricing.