Deep reorg protection

Exchange
#1

I noticed that Nash will be listing Ethereum Classic (ETC), a chain that was recently 51% attacked, as one of the assets available from launch. All other assets that are planned to be listed are secured by the ETH and NEO blockchains, which makes ETC the ‘riskiest’ asset on the Nash platform.

In early January, Coinbase was one of the first to detect the re-org and stop interacting with the ETC blockchain.

In case of another successful attack on ETC or any other PoW chain, Nash, being a non-custodial exchange, will likely be favoured by hackers looking to sell their double spent coins since their funds are not at risk of confiscation.

What systems are in place to a) detect the presence of deep chain re-orgs and b) stop the ME from trading affected pairs/prevent new deposits from the affected chain in order to protect legitimate users?

@localhuman @canesin

8 Likes
#2

Good Question, I look forward to an answer :slight_smile:

#3

Hi @elliptic.curve,

  • Nash has monitors for each chain, one of the tasks of the monitors is to detect well behavior of the chain.

  • We cannot confiscate the funds, but we can block trade by pausing markets. We can also refuse deposits on the trading channels, Nash permission works by address white listing.

5 Likes
#4

Thanks for the clarification. Will the process of pausing markets/refusing deposits be automated?

#5

partially, it will be possible to pause in assisted but not automated ways.

3 Likes