Player Wins $100,000 on EOSPlay Thanks to a Glitch
September 25th, 2019 2.00pm
EOSPlay, one of the most popular blockchain gambling networks among cryptocurrency bettors, has recently fallen victim to a cunning player who managed to hack their way to 30,000 EOS tokens, or around $110,000! Taking advantage of the system bug, the online cat burglar managed to “lift” a substantial amount of crypto money with a minimum investment of 300 EOS tokens (some $1,100).
The initial deposit was then used to set up multiple transaction channels, which overpopulated the network with numerous transactions, feeding the perpetrator’s EOS wallet with thousands of tokens.
More Gaming Platforms Affected?
According to an anonymous smart contract developer (“smart contracts” are the computer protocols that enable transactions without the involvement of third parties), the same strategy may have been applied to other platforms. The attacker’s accounts have been published, but not before the entire scheme was already successfully implemented.
It remains somewhat of a mystery how the attacker gained knowledge about the system’s flaw. With approximately one million EOS allocated to the central processing unit (CPU) from EOS REX (EOS’s rental market used for EOS token exchange), the player managed to block other users with lower-value EOS transactions. This automatically prevented others from using the system (as the cost was exceedingly high) and the blocks were then occupied with the attacker’s transactions only, which pretty much made the savvy user a rich man, especially if he used the same pattern on other platforms with similar functionality.
EOS Network Not Under Threat
Dan Latimer, the Chief Technology Officer of Block.one (EOS’s parent company) has assured the public that the network is still operable and that the users’ funds are not at risk.
“The network didn’t freeze for token holders, there was just no extra bandwidth available for free use”, stated Latimer. The statement clashes with certain complaints that were submitted by EOS users, who claim that they were unable to access their wallets and some of the dApps, however, the incidents seem to be isolated.
Blockchain Technology and Online Gambling
The blockchain banking system is used for transmitting data from point A to point B, at no extra cost and without involving a mediator. In terms of online gambling sites, it means increased security and less room for manipulation (which is easier when the transaction activities are concentrated around a central server). In other words, the information on the decentralized system cannot be easily changed or altered without the knowledge of all the users.
Blockchain system has emerged from cryptocurrency and the entire process starts by creating a block, which is then verified by thousands (or even millions) of computers across the net. The block is then linked to the chain, generating a unique record that cannot be modified without affecting the entire chain.
All information on the blockchain is stored on a shared database, and the advantages are indisputable:
• It is not under the ownership of a single entity
• The data is coded
• The blockchain is transparent, allowing the users to track the data
EOSIO was introduced in 2017, as the first international blockchain platform in the corporative environment. In June 2018, Block.one published EOSIO blockchain protocol and continued to provide optimization services for businesses in need of blockchain solutions.
The funds used for further investments in EOSIO projects are deployed through EOS VS, EOSIO business unit focused on the growth and evolution of EOSIO network.
So far, the company has managed to form agreements with a number of software gaming providers, corporations that deal with cryptocurrency AML solutions, marketing technology companies, and other businesses, including Channel Factory and Everipedia.
Blockchain Technology – Online Gambling Operators’ Friend or Foe?