A fork of the Ethereum blockchain is needed to launch the funds frozen during the parity hack some days ago. Martin Holst Swende, head of security for the Ethereum Foundation confirmed the information.
Parity Hack Damaged the Bitcoin Network
“There is unfortunately no way to recreate the code without a hard fork. Any solution which makes the locked funds accessible requires a hard fork,” Holst Swende said.
Parity Technologies, that is in charge of the wallets hacked, is trying to search a way to rescue the funds. A team of developers is working hard on the matter trying to see whether it is possible or not to unblock the funds without a hard fork. According to their webpage, they keep analysing the events and will give an answer as soon as possible.
There is no immediate plan for rescuing the frozen funds. As the network would need a hard fork in order to find a solution, it could fit in the “Constantinople” network upgrading in 2018.
“We have spent the last few days rigorously examining the events. While it is too early to decide on a fixed solution, EIP156 has been discussed for a significant time and has drawn support from various directions in the community. The team is working on a broadly accepted solution that will unblock the funds,” commented the company.
Jutta Steiner, co-founder of Parity Tech has given her position on the mater. “We are working on the @ParityTech post-mortem and we will publish it shortly,” she wrote on her Twitter account.
According to Holst Swende, the primary difficulties surrounding the restore “are more political than technical nature.”
What Happened in the Parity Hack?
The second most popular client, Parity has been hacked on November the 6th compromising 500,000 ETH. All multi-sig wallets, including the Polkadot ICO and others have been frozen. CoinStaker reported the news regarding the hack in the Ethereum platform.
“While Ethereum is a great language and platform, it is important to remember that it is still very early in its development and issues like this will arise. Diversification of funds, people, technology and location is key,” said David Mondrus, CEO of Trive.
In a report that the company uploaded, they explained the situation regarding the hack. “Following the fix of the original multi-sig issue that had been exploited on 19th of July (function visibility), a new version of the Parity Wallet library contract has been deployed on 20th of July,” reads the report. “However that code still contained another issue – it was possible to turn the Parity Wallet library contract into a regular multi-sig wallet and become an owner of it by calling it the initWallet function,” it finishes.