Cornell University Professor Predicts Massive Exchange Hack Due to EOS Vulnerability

A Cornell University computer science professor has taken aim at the governance model of the rapidly-evolving EOS model, predicting that the way in which EOS handles security flaws will result in a large-scale exchange hack within the next year.

Associate Professor Emin Gün Sirer, notable for launching one of the first Proof of Work-based cryptocurrencies in 2002, fired a salvo of tweets directed at the EOS project earlier this week in which the distributed systems expert criticized EOS governance and security.

I'm calling it: there will be a massive exchange hack within the next year, taking advantage of an EOS vulnerability.

By taking advantage of EOS vulnerabilities, hackers will be able to capture the hot wallet of an exchange, thereby accessing the EOS within and trading it for other tokens via downstream exchanges.

Should EOS leverage arbitrators in order to reverse the hack, Sirer predicts the proliferation of lawsuits aimed at EOS developers.

"Exchanges have not yet figured out that EOS's governance model does not mix well with other currencies. EOS folks will blame others, and they won't be entirely wrong."

Sirer's statements appear to be, in part, driven by a bug present within the EOS code that caused the EOS blockchain to suffer from a temporary halt directly after launch, with developers struggling to develop a patch in a timely manner.

"EOS has a novel governance mechanism that the exchanges have not quite digested yet. Because EOS has an API similar to other crypto, they treat it as if it's in the same category. In reality, EOS lacks finality due to its reliance on BPs to adjudicate and arbitrate disputes."

If the EOS trade is unwound, the exchange might be out the crypto it traded for EOS, taking a substantial loss.

Ultimately, Sirer's recommendations for crypto security practices provide EOS holders - and crypto investors in general - with guidance on protecting themselves from the security flaws in any project.