Bitcoin Update: "Your Money May Be 'Tied Up' In Unconfirmed Transactions"

Tyler Durden's picture

As the torch of responsibility is rapidly handed off from exchange to exchange to the Bitcoin source code, Gavin Andersen (one of Bitcoin's protocol core developers) explains just what is going on - and what it means for the 'wealth' stored in the virtual currency - "Users of the reference implementation who are bitten by this bug may see their bitcoins “tied up” in unconfirmed transactions" - so that's what 'bit' stands for in bitcoin...

 

Update On Transaction Malleability

You may have noticed that some exchanges have temporarily suspended withdrawals and wondering what’s going on or more importantly, what’s being done about it. You can be rest assured that we have identified the issue and are collectively and collaboratively working on a solution.

 

Somebody (or several somebodies) is taking advantage of the transaction malleability issue and relaying mutated versions of transactions. This is exposing bugs in both the reference implementation and some exchange’s software.

 

We (core dev team, developers at the exchanges, and even big mining pools) are creating workarounds and fixes right now. This is a denial-of-service attack; whoever is doing this is not stealing coins, but is succeeding in preventing some transactions from confirming. It’s important to note that DoS attacks do not affect people’s bitcoin wallets or funds.

 

Users of the reference implementation who are bitten by this bug may see their bitcoins “tied up” in unconfirmed transactions; we need to update the software to fix that bug, so when they upgrade those coins are returned to the wallet and are available to spend again. Only users who make multiple transactions in a short period of time will be affected.

 

As a result, exchanges are temporarily suspending withdrawals to protect customer funds and prevent funds from being misdirected.

 

Thanks for your patience.

As a reminder, Andersen previously explained:

Transaction malleability has been known about since 2011. In simplest of terms, it is a small window where transaction ID’s can be “renamed” before being confirmed in the blockchain. This is something that cannot be corrected overnight. Therefore, any company dealing with Bitcoin transactions and have coded their own wallet software should responsibly prepare for this possibility and include in their software a way to validate transaction ID’s. Otherwise, it can result in Bitcoin loss and headache for everyone involved.

 

As Mike Krieger recently noted,

Bitcoin is no longer in Phase 1 of its evolutionary cycle. I believe Phase 2 for Bitcoin began in earnest back in November 2013, when the Senate Committee on Homeland Security and Governmental Affairs held its first hearings on the topic. Those hearings made it clear that, at least for the moment, no significant roadblocks would be put in place to prevent people from transacting with one another using the crypto-currency. Phase 2 also saw the largest Bitcoin investment to-date, a $25 million infusion led by Silicon Valley VC firm Andreessen Horowitz, as well as acceptance by major U.S. retailers, with Overstock being the most significant. Bitcoin is becoming serious, and serious means serious accountability.

As a free market currency, the market will decide the products required to keep the Bitcoin protocol open and functioning to its highest potential.

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Flakmeister's picture

Quelle suprise....

Son of Captain Nemo's picture

Hasn't made his presence felt yet, which leads me to believe he's either wallowing in a pool of tears or he hung himself.

ACP's picture

Boner to the American people:

"Yeah you take it...right in the ass you fucking scumbag cocksucker!"

Pool Shark's picture

 

 

[WARNING: Re-Post from earlier thread:]

Bitcoin has a Fundamental Flaw:

The block chain is growing exponentially. It was under 1 gigabyte less than 18 months ago; it's now near 15 gigabytes:

https://blockchain.info/charts/blocks-size?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=

At average US internet download speeds (~ 20 Mbps) that means 2 hours to download the block chain for the typical Bitcoin user.

If Bitcoin hopes to expand to cover even a tiny percentage of the transactions handled by an entity like Visa; the block chain will be well into the terrabytes.

Good luck with that...

BlackChicken's picture

I think I've seen enough, thanks though.

petolo's picture

I'll have to talk to my wife about it.

gold-is-not-dead's picture

freshly baked daily range of thousands anyone?

wallstreetaposteriori's picture

We are so glad that fonestar will soon never be commenting on this website again

Poor Foneystar

 

NoDebt's picture

Fonestar is the herpes of ZH.  He'll be back.

eclectic syncretist's picture

And the Great Satoshi called his disciples around him on the mountaintop, and seeing their concern, her began to teach them thusly: SELL! SELL! SELL IT ALL! TAKE WHATEVER YOU CAN GET!

CH1's picture

I'll buy your BTC at $100.

Do you really believe it's going to nothing? Then sell to me.

Never One Roach's picture

Dear Lender,

I regret to inform you that our mortgage payment to you may be tied up in unconfirmed transactions for an indeterminate length of time.  This is something that cannot be corrected overnight.

We take this action for your own protection. You can be rest assured that my wife and I have identified the issue and are collectively and collaboratively working on a solution. Please bear with us. Have a nice day.

Sincerely,

Your Valued Mortgagor

HarryWanqer's picture

Maybe the laundered money fleeing Bitcoin will swarm to Silver and bail out the ZH flight club setting on a 50% loss since 2011.

USD FOREVER BITCHEZ!!!

fonestar's picture

Supposedly all of fonestar's wealth is in danger of being vaporized tonight.  Yawn....

Ness.'s picture

Yawn?  Are you sleepy?  I know, I know... it's already been a long week, and it's well past your bedtime. 

 

 

TruthInSunshine's picture

Whisper rumor that the elusive "Satoshi" is to make a midnight appearance to calm bitcoin liquidity/stability/fraud-ility concerns...

..stay tuned.

FEDbuster's picture

Just checked my gun safe, all my silver and gold is still safe and sound.

"If you can't stand in front of it and defend it with an AR-15, you don't own it." Ann Barnhardt

wintermute's picture

FFS. Bitcoin is the first honest currency after gold, and the core dev team are calling the situation as it is. The software fix is already implemented in the reference client.

https://github.com/bitcoin/bitcoin/commit/1bbca24

Compare this honesty to 100 years of smoke and mirrors from the Fed, BoE, BoJ and others. Compare this honesty to the fog which surrounds the financial situation of the TBTF banks!

HarryWanqer's picture

The details of currency creation and value determination are not for the common man. Matters of such consequence must be made in secret from the prying eyes of the public. This is why the USD is so stable.

GetZeeGold's picture

 

 

 

 

 

Has anyone seen my bitcoins?

 

Oh where, oh where could they be?

kralizec's picture

These are not the coins you're looking for.

Quinvarius's picture

They will never stop the hackers.  We have been down this road before where people claim some new product is unhackable.  If it is man made, and it talks on the internet, it will be exploited.  Do not doubt the imagination and motivation of an intelligent hacker after millions of untracable dollars.  There is no puzzle with a bigger payoff, in the hacking world, than bitcoin.

capitallosses's picture

In my house, ammo is best used on cats. Can't coexist.

fonestar's picture

Yeah but can Barnhardt kill Satoshi with that pink AR-15?

JoBob's picture

FEDbuster:  Just checked my gun safe, all my silver and gold is still safe and sound.

 

You can store your silver in ONE gun safe?

 


SAT 800's picture

Valium Addict; can't worry; can't stop yawning.

Lore's picture

Re: "50% loss since 2011."

ZH is dominated by traders.  You think everybody bought at the top and then sat with their fingers up their behinds?  "Much have you to learn, youngling."

HarryWanqer's picture

What? You mean you settle in USD at the end of the day? Thanks for proving my point.

USD FOREVER BITCHEZ!!!

Vint Slugs's picture

@Lore

Don't mean to misdirect the thread but I can't help but respond to you.  You say, "ZH is dominated by traders."

Historical studies show that 80% of commodities trades result in net losses.  So, to answer your question, "You think everybody bought at the top and then sat with their fingers up their behinds?" Answer: yes they did or 80% lost their shirts.

Let's get serious and correct your statement: ZH is dominated by talkers. We all know that talk is a lot of hot air.

 

Frank -THE COIN -'s picture

I think you'r a little off. it used to be that 90 % of Commodity traders lost their money. It improved to only 80% now lose their money. The point that is being made is that the Majority of people on this site are Traders. There are MULTIPLE DISCIPLINES of traders on this site that dont trade Commodities and are very successful. Tyler is a MACRO Trader and many contributors have given Traders on this site Different avenues to see different markets, and trade in Different ways.

OpenThePodBayDoorHAL's picture

LOL ZH Traders. Moaning about how they completely missed the rally for the last five years, moaning about how much they love gold despite it being 100% manipulated and corrupt, and moaning because they can't wrap their pea brains around the way money will be done in the future. Do you really think you'll be wandering around with a little strip of plastic with all your own personal financial numbers on it? So you can hand it to some waiter at a restaurant for him to skim? Or better yet so you can put those numbers into some website? So they can "safekeep" them for you?

Sometimes I truly do not get ZH

Lore's picture

Re: "Sometimes I truly do not get ZH"

At least that part of your post makes sense, but the rest of it seems like gibberish, disconnected. You appear to be struggling with a conflict that I don't see. Rgds

fonestar's picture

I'll buy your BTC at $100.

 

fonestar will give you $200!  (sorry CH1)

CH1's picture

Dude, people need to suffer for their irrational hate. I would have worked with you!

fonestar's picture

Let's just send some Bitcoins and send them back.  If Bitcoin is truly fubar'd then it shouldn't work right?

ElvisDog's picture

Except, Fonestar, it's clear from what and how you write that you have no money, none to speak of anyway. Bitcoin was your get-rich-quick-scheme to turn your nest egg of $2000 or whatever into millions.

snr-moment's picture

Sure like i said, after I buy a bunch for 10$

wallstreetaposteriori's picture

Foestar has herpes or is the herpes....  Doesn't matter.  If he comes back after the crpto-crash, he will be verbally assulted for his epic stupidity. 

fonestar's picture

fonestar will never leave.  Bitcoin is fine.

Rusty Shorts's picture

I'm leaving; stick that in your pipe and smoke it.

fonestar's picture

fonestar tends to have that effect upon people.

Flux's picture

Fonestar makes Flux smile as Fonestar is a mirror of Zerohedge types, see?

Much hoarding, much doom. so gloom. No one like Fonestar because no one like Zero Hedge. Apple falls so close to tree. When community falls, no goods. No services. No transactions. Only friends. When community thrives, many goods. Many services. Many friends.

See constant?

If no friends now, no friends tomorrow.

Have dogecoin! Much friends! So community!

To the moon!

 

 

 

 

fonestar's picture

Truly one post for backup.  Much save.

JoBob's picture

fonestar: 

How often do mature adults refer to themselves in the third person?

fonestar's picture

An average of 135 spamtoshis a day.