An Ethereum-based Ponzi scheme called Fomo3d is going viral

Leo Zhang

By Leo Zhang

It was only a matter of time before Ethereum, the home of the ICO and token-gambling, gave birth to literal casino games:

"Fomo3d is simple in concept. You buy a 'key,' which is kind of like a token, and that key adds 30 seconds to a timer. Part of the ETH you paid for the key goes to a pot, which currently has some 28,000 eth ($13 million). Part of it goes in 'dividends' to those that bought a key before you."

Millions of dollars are ebeing sent to a Ponzi like Ethereum Smart Contract game that might never end

Most other (non-gambling) projects aren't as successful. In a comprehensive paper featured in the thread below, the UPenn Law professor Dave Hoffman reviews the current state of the top 50 ICO projects in 2017 and shows just how far poorly they're faring.

A review of the top 50 2017 ICOs

The state of Dapps

Technical Updates

Lightning Network installation guides, philosophy and technical articles
(Coinmonks, by Gaurav Agrawal)

"The Lightning Network is one of the first implementations of a multi-party Smart Contract (programmable money) using bitcoin’s built-in scripting. The Lightning Network is leading technological development in multiparty financial computations with bitcoin. It’ll enable instant payments even for small transactions and will improve Bitcoin’s Scalability and hence will help in bitcoin adoption."

The state of hashing algorithms- the why, the how, and the future
(zkCapital, by Raul Jordan)

"A critical part of their security involves being able to compress large chunks of information about the global state of the network into a short, message standard which can be efficiently verified if need be, known as a hash."

Decentralized exchanges aren't living up to their name- and data proves it
(CoinDesk, by Leigh Cuen)

"According to data collected exclusively for CoinDesk from July 2 to July 12 by the ethereum analytics firm Alethio, as well as interviews with market participants, what decentralized exchange models actually offer is a spectrum of technologies with varying degrees of centralization."

The Crypto Miner Podcast- discussion on Matt Corallo's proposal of BetterHash

Privacy and secrecy: a general analysis
(The Crypto Realist)

"I’ll be writing up more of a conceptual overview of concepts very near and dear to my heart: the concepts of privacy and secrecy, and how they relate to various terminologies becoming more and more popular: namely: Zero Knowledge proofs, ZKSNARKs, Trusted Execution Environments, and Multi-party computation."

Audit report of Monero's Bulletproofs integration
(Kudelski Security, by JP Aumasson)

"That is, we did not find any major or critical issue in the bulletproofs implementation. In particular, we did not find any shortcoming that could be exploited by an attacker."

Taproot, and Schnorr, and SIGHASH_NOINPUT, oh my!

Google: Security keys neutralized employee phishing
(Krebs on Security)

"Security Keys are inexpensive USB-based devices that offer an alternative approach to two-factor authentication (2FA), which requires the user to log in to a Web site using something they know (the password) and something they have (e.g., a mobile device)."

101 Series: Game Theory

"What is Game Theory and how can we apply it to our life? We kick off with a history lesson about how the field came to be and then get more hands on as we explore concepts like the prisoner’s dilemma, the tragedy of the commons, talk meta, and more."

News & Commentary

Despite criticisms, Fed agrees it won’t regulate cryptocurrency
(CoinCenter, by Jerry Brito)

Bancor founder discuss hack, says crypto community need to fight thieves
(News BTC, by Tim Copeland)

"Benartzi said: 'What we learned from this experience is there’s so much chaos that happens after an incident like this, where if all the parties were better coordinated, if there was a hotline, if we could share information more transparently, if we could be quicker about getting flagged accounts or flagged wallets to the exchanges so they could track those as well then we could all be better off.'"

Venmo's terrible idea
(ars Technica, by Cyrus Farivar)

"Why would I want the world, even my Internet friends, to know when I settle bar bills? I know of no mainstream payment system that makes its transactions public. PayPal, Venmo’s parent company, doesn’t even do this. After new scrutiny last week, Venmo still will not explain fully why the public default is useful."