Re: [tlug] [OT] Mt.Gox Debacle. Please Comment.

[Brian LaVallee <b.lavallee@example.com>]

> On Feb 26, 2014, at 2:09, "[SCA] SCHWARTZ, Fernando G." <fgs@example.com> wrote:
> 
> Fellow TLUGers, ohayou gozaimasu!
> 
> My feeds flooded today by Shibuya-based, Mt.Gox debacle. If there is one topic I would learn everybody's opinion is BitCoin. Because that's one tech initiative to change the world for the better.
> 
> What you guys think about Mt.Gox and the current state of BitCoin in general? Mt.Gox left one hell of a ridiculous statement on its site.

I think Mt.Gox (and possibly other exchanges) have made a simple and fundamental mistake.  They relied on the blockchain info as their business ledger.  While there is cost to adding bureaucracy to the payment process, relying solely on automation led to double payments of BTC to fraudsters. 

The transaction malleability flaw, is tricky.  Simply explained, the blockchain transaction ID used extra data.  A hash of: "A+B+C,Memo"

The blockchain only cares that "A+B+C" are correct.  So hashing "A+B+C,BogusMemo" produced a valid (and acceptable) hash.  But the ID wouldn't match the record that Mt.Gox used to track the transaction.

I do think that Mt.Gox did a decent job throughout the world.  They established a number of international payment points.  But they also
faced some (ongoing) regulatory challenges, and money laundering accusations.

> I think BitCoin (the market) will naturally learn how to segregate people in need of "adult supervision".

Being in Japan, I am surprised that Mt.Gox hasn't learned the apology dance.  Step up, take responsibility for your errors, disclose exactly what happened, share how you will prevent it, and apologize.

> Anyway. Your comments are all much appreciated. Thank you.
> -- 
>                 SCHWARTZ, Fernando G. ~ fgs@example.com /
>      suporte@example.com # +55-21-4042-4010 [@GMT-3]
> 
>