IOTA is the tenth by market capitalization ($5 billion) cryptocurrency. Unlike most other cryptocurrencies, which are based on the blockchain, IOTA uses a technology called directed acyclic graph (DAG). Also, instead of widely known cryptographic algorithms, the project team applied a proprietary algorithm Curl.
In July last year, researchers from the Massachusetts Institute of Technology (MIT) has discovered a vulnerability in the code IOTA and reported it to the developers.
In his letter IOTA team a researcher from Boston University Ethan Heilman (Ethan Heilman) associated with the research in the field of digital currencies at mit, reported a serious cryptographic flaws in the current implementation of Curl in IOTA.
However, the reaction of the team IOTA was not quite adequate. After a long and not very pleasant for researchers DCI electronic correspondence, information about the vulnerability was made public. The main problem of this vulnerability was that attackers could spoof a transaction in a network IOTA. The developers IOTA blamed it on the lack of understanding by researchers of the protective mechanism of the network, but still changed the algorithm on Keccak Curl.
After information was made public about the vulnerability, as well as correspondence team IOTA with researchers DCI, the community began to have serious criticism of the project.
The conflict continues to flare up and may escalate into litigation as representatives of IOTA, in particular, the co-founder of IOTA Ivancioglo Sergey (Sergey Ivancheglo), has threatened legal action if «attacks» from the DCI and other parties to the conflict will not stop.