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Bitcoin Transaction Malleability Explained

The entire bitcoin payment network is currently experiencing an ongoing attack.

Transaction Malleability is nothing new and has been a weakness for years. Many may remember that Mt. Gox blamed their loss of nearly a billion dollars worth of bitcoin on this one flaw. Malleability won;t directly cause a loss of funds but it can slow down and much up the payment network.

Some effects of Transaction malleability.

  • Zero confirmation transactions should not be trusted.
  • Your transactions coming and going may be slower.
  • Transaction ID’s cannot be trusted to be correct.

Technically transaction malleability is when rouge nodes can change the transaction id and thus give the impression that transactions are double spend attempts. To put it simply transaction malleability at it’s worse can make honest bitcoin senders seem like hackers. This is the work of pranksters, enemies of bitcoin in general or someone trying to make a point about not trusting zero confirmation transactions, which would hut bitcoin as a payment network. Conspiracy theories aside this is an issue worth understanding.

Those looking for more information should see CoinKite’s excellent article on the thttp://blog.coinkite.com/post/130318407326/ongoing-bitcoin-malleability-attack-low-s-highransaction malleability. They are always first to the punch.

Our response

Here at Paxful a tremendous increase in wallet load as well as this on going attack caused our system to mis-process some out going transactions and some did not go through the network many being dropped as double spends. We have fixed this error and it will not happen again. We have refunded all those affected. If you were affected from Friday night to Saturday morning then please email help @ paxful.com with the transaction id and we will take care of it immediately.

Thank you for your patience.

 

 

Paxful

Paxful is a marketplace where people can buy and sell bitcoins directly with each other. You can get bitcoins instantly and pay with debit, credit, cash, Paypal and any currency.

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