Episode Transcript
[00:00:00] Out of cycle update.
[00:00:03] A breach or just a sloppy wallet holder? Cryptotalk Fm my name is Leister, I'm your host bittencer, which I'd never heard of a bit tensor. A blockchain suffers $8 million exploit, unquote. I say quote, because I'm not really sold. It was an exploit. Let's continue though. Tao token takes a hit. Developers pause the blockchain so they can look into what happened. And what turns out happened is that one person, so the one person had a breach of their wallet and then a couple of other ones had breaches of their wallets. That's not an exploit. It's an exploit of those people. It's not exploit. The chain, the chain was never exploited. So the, the articles putting this out as an exploit, I'm not sold on their messaging. I understand what they're saying, but it's a little bit misleading because you're creating panic. We don't need to if people are sloppy with their wallets, because what happened is these private keys got, people got access to private key. There are just some stupid people that put their private keys out there in the wild. I don't know why they do that, but they do. That's not an exploit. If the private key was made available to whoever breached it, that's just a stupid wallet holder. And unfortunately they're very wealthy people. So it could be that the private key was given to like some secretary or somebody they just got done banging. You don't know I'm saying the word exploit really pisses me off because that's not what I say really happened here. You simply had some weak users who had their stuff breached. And yes, that does affect anybody who's holding the token. The price rebounded. It didn't significantly suffer, went down like $20. It's not like a crazy amount of dip, but I think the articles might have caused more harm than the actual breaches themselves. Because when people see the word exploit, the chain and the chain is being paused. They tried their best to communicate on social media. Hey, we see this and we need to do some investigation. That's why we're pausing it. We're not pausing because there's a problem. We're pausing it because we want to make sure we understand the scope of what happened and wrap our heads around it. That should be celebrated. And anybody who's criticizing these guys need to be slapped upside the head.
[00:02:05] I think this was good response. This is what side of chain failed to do with their ex bridge breaches. Get ahead of it. And you're doing things that are designed to preserve the value of it because they preserved the value very well because they got ahead of it. Really quick quote, bit tensor was halted due to additional thefts, as in thefts of wallethood earlier today, potentially as a result of private key leakage. And again, leakage could mean anything. It could mean they just left it on a piece of paper sitting on the desk. That's not an exploit. It's just somebody was stupid with their wallet and that's a lot of money that just got took from them. And it does affect other traders. But it's not that the blockchain was impacted, because from what I can tell, the blockchain was fine. Quote as we are prioritizing this issue for the rest of this week, we will not be releasing any regular software update for either bittencer software or for any chain on either mainnet or testnet until we have brought the chain fully back online. Quote by way of an update, we have contained the attack and put the chain into safe mode. Safe mode basically means that everything's running, but it doesn't commit the transactions. We're still mid investigation or considering all possibilities. Stay tuned.
[00:03:12] Might be a pro that the chain can be halted like this, but I think the reputation damage for a decentralized AI protocol is more relevant. After all, if the devs can switch off the chain, the government can do so too. This is in response to the fact that they were able to halt the chain and people questioning, well, didn't you say you're decentralized? And that goes back to an update I did where I said there is no descend because if it's descend, how can you halt the chain and affect the chain's course? That's not descend, it's actually centralized because there's a dev team behind it. I still don't bang on them because it's actually good they were ahead of it because they were able to get involved. When something like this happens, there's no pro or con. I simply would wish that we would stop using the word decentralized because there's no decentralized. Anyway, if you're in the bittensor, the chain is fine. They're just taking mitigating steps because of the breach that happened on people's wallets.
