Cryptographic vulnerabilities in IOTA

IOTA is an alternative crypto platform that uses acyclic graphs as opposed to blockchains. This is interesting because of its propensity to scale; transaction throughput increases linearly with the number of nodes, as opposed to remaining static with blockchains. Unfortunately this week, a critical vulnerability in the crypto protocol used by IOTA was discovered. Instead of using an "off the shelf" cryptography algorithm such as SHA256, the IOTA team decided to create their own, which turned out to have a critical flaw. Upon publication of this discovery, the price of IOTA slid 50% in hours. 

The golden rule of cryptographic systems is “don’t roll your own crypto.”


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