Old CryptoPunks Contract Exploited but it’s Worthless

According to PeckShield Inc., the old Cryptopunk contract was exploited to steal punk 2624/5356/1702. The Cryptopunks hacker tried to hack the funds which were present in V1 of Larva Labs and since they were in V1 they were not actually valuable. So even if the hacker stole the funds, the original funds are still present in V2. True CryptoPunks 2624/5356/1702 are safe in their owners’ wallets. 

Old Cryptopunks Contract Exploited But It’s Worthless
Old CryptoPunks Contract Exploited but it’s Worthless

The above image is proof that the “exploit” transactions don’t line up with transactions on the real V2 CryptoPunks contract. Hence it clearly shows that the exploit was worthless.

Old Cryptopunks Contract Exploited But It’s Worthless
Old CryptoPunks Contract Exploited but it’s Worthless

CryptoPunks is a collection of non-fungible tokens (NFTs) on the Ethereum blockchain. The Larva Labs studio, a two-person team consisting of Canadian software developers Matt Hall and John Watkinson, launched the project in June 2017. The crypto art blockchain project inspired the ERC-721 standard for NFTs and the modern crypto art movement, both of which have since become a part of the cryptocurrency and decentralized finance ecosystems on multiple blockchains. CryptoPunks is a collection of 10,000 works of art that have been tokenized as NFTs on the Ethereum blockchain. With CryptoPunks NFT, the purchaser is the sole owner of a one-of-a-kind pixel avatar.

Bitcoin popularised cryptocurrency, but Bitcoin is only designed to transact and store ownership of Bitcoin itself. CryptoPunks are using Ethereum, a successor to Bitcoin that allows arbitrary computer code to be executed on the blockchain and the results of the execution to be stored indefinitely. Normally, code is run on a server somewhere, and you must rely on the person who runs the server. Ethereum allows everyone to run the code, show each other the results, and agree that the code was run correctly and fairly.

CryptoPunks have written code that lives on the blockchain that anyone can use to buy and sell Punks with anyone else in the world. An interesting aspect of this system is that they no longer have any control over the code running CryptoPunks. Once they released it onto the blockchain it became permanently embedded there and can no longer be modified by anyone. This is scary for them as developers because they should worry about bugs. But according to them, it is also a very powerful feature of the system. It allows a user to verify that there are indeed only 10,000 punks, check that no one can steal them from you.

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.