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Zhao Changpeng calls for the cryptocurrency industry to establish a security alliance to share defense experiences

Binance founder Zhao Changpeng responded for the first time to the incident of approximately $6.3 billion being stolen from Binance during an interview with Talking Tokens, stating that all hacking attacks are preventable and that a long period without security incidents can lead to complacency in enterprises.He pointed out that the frequency of hacking attacks on cryptocurrency exchanges has risen from about once a month to almost once a week, with AI accelerating the development of attack capabilities, while the industry's defensive capabilities have not kept pace. He called for the cryptocurrency industry to form a security alliance to share best security practices, conduct cross-audits, and achieve rapid coordination in freezing stolen funds, expressing hope to promote the establishment of this alliance.Regarding government cooperation, Zhao Changpeng stated that there has been no communication with Trump or Washington regarding this incident, but he hopes to receive assistance from the U.S. government. He also mentioned that when it comes to communication with North Korea, perhaps only the U.S. and China have the necessary conditions. Speaking about market reactions,Zhao Changpeng noted that on the day Binance was attacked, the decline in the cryptocurrency market was less than that of tech stocks, a situation that is almost unheard of. He believes this is due to Binance's prompt confirmation of user fund security and its ability to provide full compensation.He also revealed that less than 10% of the stolen funds flowed to other centralized exchanges; recently, some hardware wallets have also been attacked, and some users have returned their funds to Binance after comparing the security situations of different platforms. Binance switched from net outflow to net inflow within less than 24 hours based on hourly statistics.Regarding the future of the industry, Zhao Changpeng believes that AI will enhance the security of the cryptocurrency industry and software systems in the medium to long term, and may even detect vulnerabilities in blockchain software before quantum computing can crack the existing encryption systems. At the same time, AI will drive trading speeds far beyond current levels, and blockchain may become the only financial technology capable of supporting such trading speeds. He also reminded retail investors to strengthen the use of asset protection tools and to continuously pay attention to industry security dynamics.

first_img Alliance co-founder Imran Khan comments on a16z's transformation: Crypto experience can be transferred to cutting-edge technology

Imran Khan, co-founder of Alliance, expressed his views on a16z crypto's shift towards cutting-edge technology. He stated that he is always grateful to a16z for leading the investment in Coinbase in 2013, which provided external validation for the crypto industry; Marc Andreessen's 2014 article "Why Bitcoin Matters" in The New York Times pushed him to shift his career towards Bitcoin.Imran Khan mentioned that at that time, very few institutions or funds were willing to publicly support crypto, and a16z and USV were two funds that took on brand risk. Since then, a large number of talents have entered and reshaped the crypto industry. He believes that the current infrastructure development in artificial intelligence has a practical connection with Bitcoin mining infrastructure and the talent flowing from crypto to artificial intelligence.He stated that the shift from crypto to cutting-edge technologies such as robotics, biology, artificial intelligence, energy, and computing power means that the talents and capabilities built in crypto over the past decade can be applied to a broader range of fields. He cited the resistance faced by data centers as an example, noting that crypto also faced opposition, but traditional finance has now accepted crypto to a certain extent. He believes that cutting-edge technology is the next generation of technology builders, and the world often recognizes the importance of new technologies many years later.

first_img Nine cryptocurrency companies established the Quantum Alliance, aiming to defend against quantum risks to 6.4 million bitcoins

According to CoinDesk, nine cryptocurrency companies announced the establishment of a Quantum Alliance on Thursday, planning to develop universal security standards for Bitcoin, Ethereum, and other blockchain networks to address the threats posed by future quantum computers.The alliance estimates that about 6.4 million Bitcoins, or 30.2% of the supply, have their public keys exposed, and future quantum computers could reverse-engineer wallet public keys to recover private keys and steal assets. The alliance explained that since no quantum computer currently has sufficient computing power, these Bitcoins cannot be stolen in this manner for the time being. Members include Hacken, Midnight Foundation under Charles Hoskinson, the quantum-resistant layer one blockchain Quantus, and Postquant Labs.There are significant differences in the industry regarding when the quantum threat will arrive. Bryn Bennett, Chief Revenue Officer of The Vault, stated that no one knows the exact date, but estimates are continuously being revised downward, and this risk can be planned for in advance. The question for custodians is not whether the threat will appear in 2028 or 2035, but whether they can complete the migration if it arrives earlier.Richard Carback, Chief Technology Officer of Postquant Labs, believes that it is realistic for machines capable of breaking existing cryptography to emerge by 2028. Recent research has lowered the estimates of the computing power required to attack Bitcoin and Ethereum, but currently, no existing machines can break their cryptography, and related predictions remain controversial.The question of whether to freeze vulnerable Bitcoins has also sparked debate. Bennett pointed out that no one is responsible for this issue; custodians only protect client assets, not abandoned assets. Freezing tokens is a governance decision of the Bitcoin network, and any freeze would set a precedent of exchanging quantum risk for property rights and neutrality. Carback prefers to transfer vulnerable tokens and suggested placing them in a trust, allowing holders who can prove ownership to reclaim their funds.Binance founder Changpeng Zhao once suggested that if quantum technology advances and Satoshi Nakamoto's approximately 1.1 million Bitcoins remain untouched, they should be frozen; Bitcoin developer Jameson Lopp also proposed limiting vulnerable tokens to prevent theft, but critics argue that freezing someone else's Bitcoins contradicts the promise that no one can confiscate Bitcoins. Achieving quantum resistance requires replacing the digital signatures that authorize transactions, which necessitates consensus among developers, miners, wallet service providers, exchanges, and users. The new signatures may also occupy more block space, increasing transaction fees or reducing the number of transactions Bitcoin can process.
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