[HN Gopher] Sybil attacks on airdrops
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       Sybil attacks on airdrops
        
       Author : rckrd
       Score  : 35 points
       Date   : 2022-07-17 17:23 UTC (5 hours ago)
        
 (HTM) web link (matt-rickard.com)
 (TXT) w3m dump (matt-rickard.com)
        
       | paulpauper wrote:
       | cheap transactions also makes mixing crypto cheaper
        
         | droffel wrote:
         | Why use a mixer at all? The technology is fundamentally
         | centralized/trust-based, and even assuming a perfectly
         | trustworthy mixer, vulnerable to many forms of analysis (the
         | list of which will only grow as time passes). If you want
         | privacy, use something that actually gives it to you, like
         | Monero.
        
           | paulpauper wrote:
           | no one accepts monero
           | 
           | you don't have to use an actual mixer. just set up 1000s of
           | addresses and just cycle many tiny transactions
        
             | cowtools wrote:
             | On the contrary, no one accepts bitcoin.
             | 
             | Alphabay2 is the only market left and it's monero-only.
        
       | syzygyhack wrote:
       | It's an interesting problem and one that many decentralized
       | applications will be forced to contend with, beyond simple
       | airdrops. Many on-chain protocols and primitives simply don't
       | need to differentiate between human user and program, but the
       | ones that do are usually crippled if they fail to adequately do
       | so. Quadratic funding mechanisms, for example.
       | 
       | I believe we're still very early on this front, there's lots of
       | opportunity for innovation in terms of Sybil defense. Dox Your
       | Customer is the easiest and naturally the most at odds with the
       | Web3 paradigm, but there are others that make fewer compromises
       | which have been tried with varying levels of success. Vouch
       | networks/social graphs, attestation or reputation systems, video
       | identity registries, recurring cost, time-coordinated Turing
       | tests, etc.
       | 
       | I am certain novel approaches will continue to emerge until we
       | land on something robust without sacrificing decentralization or
       | the right to privacy.
        
       | pjdkoch wrote:
       | I'm partial, because I work for them, but maybe use
       | https://fractal.id/?
        
       | plopilop wrote:
       | Another funny example is the one of Juno: a whale Sybil-ed the
       | airdrop, and gathered 10% of the tokens. Then, the community
       | voted to strip the whale of most of their tokens.
       | 
       | I find the example interesting because it shows that Layer 2
       | protocols can very much strip you away from your coins, just like
       | banks/governments can.
       | 
       | (https://beincrypto.com/juno-community-votes-to-reject-tokens...)
        
       | 1-6 wrote:
       | The attack surface of Apple's products grow day-by-day with
       | features meant to make life convenient.
        
         | aaaaaaaaaaab wrote:
        
         | JumpCrisscross wrote:
         | > _attack surface of Apple's products_
         | 
         | Cryptocurrency airdrops [1]. Not Apple's AirDrop feature.
         | 
         | [1] https://www.investopedia.com/terms/a/airdrop-
         | cryptocurrency....
        
         | sahkopoyta wrote:
         | Apple's products? This is not about them
        
         | katbyte wrote:
         | This has nothing to do with apple and is about a crypto thing.
        
       | JaggerFoo wrote:
       | I'm suprised that Gitcoin was not mentioned, they have dealt with
       | sybil attacks and have processes to try and detect it.
        
       | cinquemb wrote:
       | Seems like if protocols don't provide any liquidity for their
       | tokens, but the tokens can be used to have access to a protocol
       | revenue, I don't see the problem.
       | 
       | Except for most tokens/protocols don't have any revenue they can
       | share with token holders...
        
       | droffel wrote:
       | I'm reminded of this scene from It's Always Sunny in
       | Philadelphia. In theory, the goal of the airdrop is to create new
       | users, but in practice the airdrop receivers just cash out their
       | chips and go home.
       | 
       | https://youtu.be/cyxxE1AcUSM
        
         | xbar wrote:
         | Yup.
         | 
         | That was the Divergence Ventures/Bridget Harris play listed in
         | the article. To their credit, they returned the money when
         | called out on it.
        
       | game-of-throws wrote:
       | I think at this stage it's impossible to fairly distribute a coin
       | to new users.
       | 
       | Bitcoin was born into a unique environment. The world did not
       | know what to think, and largely ignored it, so it was able to
       | spread organically for years, detached from any notion it would
       | ever be worth anything. Because it had no value, it could grow
       | without having to worry about these kinds of attacks. Only once
       | it spread far enough did it begin to take on economic value and
       | an exchange rate, reaching one penny and beyond.
       | 
       | Airdrops these days do the exact opposite. They're premined,
       | listed day 1 on exchanges, and the creators try to pump the
       | exchange rate in order to finance later development. The entire
       | process is corrupted by users viewing projects through an
       | economic lens, and creators trying to extract value before
       | delivering value. Now that the cat is out of the bag, it's likely
       | the conditions of bitcoin's creation will never happen again.
        
         | cowtools wrote:
         | Well bitcoin's distribution in the early days also relied on
         | faucets, which were susceptible to sibyl attacks
        
         | drexlspivey wrote:
         | grin started a couple years ago same as bitcoin, the day of the
         | v1.0 release the devs hardcoded the latest bitcoin block hash
         | in the genesis block (to prove there was no premine) and as
         | soon as they pushed the commit people were able to build the
         | code and start mining
        
           | yieldcrv wrote:
           | people dont consider instamines any less unfair than premines
           | 
           | there is zero consensus on fair and therefore it is
           | impossible to have a fair launch
           | 
           | all outcomes result in consolidation unless
           | inflation/dilution is extremely high and uninteresting
        
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       (page generated 2022-07-17 23:01 UTC)