Tag: payments

Ripple making a splash in Japan

Ripple, in conjuction with a consortium of 61 Japanese banks, will debut an app this fall in Japan that settles payments instantly. SBI Net Sumishin Bank, Suruga Bank and Resona Bank will test the new app first. If the test is successful, the app will be rolled out to the rest of the banks in the consortium. (CNBC)

Money Tap is the name of the new app.

Ripple said that the app would make it easier for banks to settle round-the-clock domestic payments in Japan. Consumers will require a bank account, phone number or a QR barcode to use the app, Ripple said. (CNBC)

Be smart: There’s a reason this launch is happening in Japan. Japan is adopting one of the most progressive approaches to blockchain technology and fintech. Japan is counting on fintech to be a major driver of its economy in the future and provides regulatory friendly environment to launch blockchain solutions.

 

Share
Share
+1
Stumble

Overstock, Coinbase close bitcoin cash flaw

Quick read

For about three weeks, a bitcoin payment glitch left online retailer Overstock and bitcoin wallet Coinbase vulnerable to potential fraud. Customers were being charged in bitcoin, but allowed to pay the numerical equivalent in bitcoin cash. (KrebsOnSecurity)

Mini-explainer

So if an item cost 10 BTC, customers were allowed to pay 10 BCH instead. Additionally, if customers canceled the order, refunds were made in BTC even if the payment was made in BCH. Given the value disparity between BTC and BCH (bitcoin is about 7 times more valuable than bitcoin cash), this was a serious problem.

The key facts

Consider the implications here: A dishonest customer could have used this bug to make ridiculous sums of bitcoin in a very short period of time. Let’s say I purchased one of the more expensive items for sale on Overstock, such as this $100,000, 3-carat platinum diamond ring. I then pay for it in Bitcoin cash, using an amount equivalent to approximately 1 bitcoin ($~15,000).

Then I simply cancel my order, and Overstock/Coinbase sends me almost $100,000 in bitcoin, netting me a tidy $85,000 profit. Rinse, wash, repeat. (KrebsOnSecurity)

The bottom line

Coinbase implemented the bitcoin payment solution, so it stood to lose the most from the glitch. As the cryptocurrency space becomes more crowded, the potential for these types of mistakes will increase. Payment processors need to be extra careful moving forward to avoid situations like this.

Share
Share
+1
Stumble