The National Vulnerability Database (NVD) has recently flagged Bitcoin’s inscriptions as a significant cybersecurity risk, drawing attention to a security flaw that paved the way for the development of the Ordinals Protocol in 2022. According to the database records, a data carrier limit can be circumvented by disguising data as code in certain versions of Bitcoin Core and Bitcoin Knots. The document highlights, “As exploited in the wild by Inscriptions in 2022 and 2023.”

NVD Recognition: A Call for Public Awareness

Inclusion in the NVD’s list signifies the acknowledgment, cataloging, and public awareness of a specific cybersecurity vulnerability. The NVD is overseen by the National Institute of Standards and Technology (NIST), an agency within the U.S. Department of Commerce. The current analysis of Bitcoin’s network vulnerability suggests a potential impact, such as an influx of non-transactional data spamming the blockchain. This could lead to an increase in network size, adversely affecting performance and fees.

Luke Dashjr’s Insights and Bitcoin’s Network Challenges

A recent post on the NVD’s website features insights from Bitcoin Core developer Luke Dashjr, who claims that inscriptions exploit a vulnerability in Bitcoin Core, resulting in network spam. Dashjr compares the experience to receiving daily junk mail, slowing down the user’s process of finding important contacts. An inscription involves embedding additional data to a specific satoshi, the smallest unit of Bitcoin, making it a permanent part of the blockchain.

Rise of Ordinals and Its Impact on Bitcoin

Although data embedding has been part of the Bitcoin protocol for some time, its popularity surged with the introduction of Ordinals in late 2022. This protocol facilitated the direct embedding of unique digital arts into Bitcoin transactions, akin to non-fungible tokens (NFTs) on the Ethereum network. The volume of Ordinals transactions in 2023 led to network congestion, intensifying competition for transaction confirmation, thereby increasing fees and slowing processing times.

Potential Patch and Implications for Ordinals

Addressing the vulnerability could potentially restrict Ordinals inscriptions on the network. When asked if Ordinals and BRC-20 tokens would cease to exist if the bug were fixed, Dashjr affirmed, “Correct.” However, existing inscriptions would remain intact due to the network’s immutability. The ongoing scrutiny of Bitcoin’s vulnerability emphasizes the importance of cybersecurity in the ever-evolving landscape of digital currencies.

The post Bitcoin’s Network Vulnerability Raises Concern Over Cybersecurity appeared first on CryptoShrypto.

---

Filed under: Bitcoin - @ December 11, 2023 5:12 pm