OK, then there is no way to achieve significant higher security with this approach.
I think cold-locked minting is another technology which can prevent some thefts (because of the higher security for minting wallets) and above all 51% attacks (because of a probably higher PoS minting rate). I hope 0.5 is advancing …
And for the centralized-exchange problem: A short-term possibility is to add PPC to the Nxt Multigateway, there it would be possible to trade them for BTC and LTC actually. There is a problem still: the relatively high Nxt transaction fee. And It would be something like “embracing the closest competitor”. But in my eyes it would be a pragmatic way to deal with the problem until PPC has its own coloured-coin or similar mechanism.
The hacker told Lin that he couldn’t log into BTER server by anyway, but he was lucky that he got the passphrase from his analysis of Lin’s history information on the Internet 6 or 7 years ago. Lin promised that he will take responsibility of this incident and BTER will go on service.
NXT Multigateway is, as far as I can tell, still centralized. The servers that receive “real” BTC deposits into the system could get hacked or compromised, leaving mgwBTC unbacked by real bitcoins.
The hacker told Lin that he couldn’t log into BTER server by anyway, but he was lucky that he got the passphrase from his analysis of Lin’s history information on the Internet 6 or 7 years ago. Lin promised that he will take responsibility of this incident and BTER will go on service.[/quote]
Excellent information. So it’s an isolated incident that has more to do with weak passphrase and weak internal security measure on Bter’s part. Kudos to Bter to keep things transparent.
What we don’t know is whether the theft was made easier because Bter had to keep a large amount of NXT in hot wallet to get POS reward.