The Bitcoin bug threatening the web's favourite cryptocurrency
Top Bitcoin exchange MtGox has released an update on the issue that saw Bitcoin prices crash last week.
MtGox have discovered a critical flaw with Bitcoin, that every exchange is now having to deal with. That fault threatens the functioning of the digital currency.
The problem is known as "transaction malleability".
Here's their non-technical explanation:
A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent.
Bitcoin's core development team and MtGox are working with each other to deal with the fault.
The technical difficulties have hit Bitcoin prices in two ways, as fears over the technical fault and the removal of MtGox have weighed on prices.
The so-called "MtGox premium" has been removed (Bitcoin prices have almost always more expensive on the MtGox exchange), removing an arbitrage opportunity for traders.
MtGox say that the issue must be put in perspective, and that "it's important to remember that Bitcoin is a very new technology and still very much in its early stages."
In other news
BARCLAYS, the international London-based bank led by Antony Jenkins, has decided to put its broking mandate up [Read more]
BUSINESS groups largely welcomed yesterday’s Queen’s Speech, but many nevertheless identified concerns with [Read more]
Former Thomas Cook boss Harriet Green has said she'll donate a third of her forthcoming share award to a charity [Read more]
Update: Firefighters have put out a blaze at a Berkeley Homes building site on Arsenal Way, Woolwich this afternoon. [Read more]
Greece's creditors have poured cold water on the cash-strapped country's claim that the parties were nearing a [Read more]
The EU and Switzerland have signed a deal to stop EU residents holding undeclared income in Swiss bank accounts. [Read more]
A random combination of words and characters are automatically shutting down iPhone users' devices. [Read more]
London will play host to a record number of cyclists in August as the Prudential Ride London Freecycle event expands [Read more]
Commuters using London's Fenchurch Street could face a travel headache going home tonight, with operators confirming [Read more]
Eight candidates are vying for the role of deputy Labour leader in a crowded race alongside the high-profile leadership [Read more]
Between 1997 and 2013, people living in just four regions in the UK saw their disposable income increase when [Read more]
Prime Minister David Cameron has had work done. Five years in Coalition has taken its toll on the youthful fresh-face [Read more]
Swiss police are questioning 10 Fifa officials over the controversial award of the 2018 and 2022 World Cups to [Read more]
Dutch banking giant ING last night cut its stake in NN, an insurance and investment management company.
Update: Nearly 150 flights have been cancelled and 32 diverted to other European cities after a power outage shut [Read more]
A fresh investigation into migrant worker conditions in Qatar landed BBC reporters in prison recently. It is another [Read more]
The Bank of England will not back down on tough regulation, top official and ex-Barclays boss Martin Taylor said [Read more]
Perhaps the most enjoyable outcome of the General Election is the abuse now being heaped on the metropolitan liberal [Read more]
Private company SpaceX has received certified approval from the US to send military and spy satellites into space. [Read more]
Essex commuters will be the first to benefit from London’s Crossrail train service, with fare cuts of up to [Read more]