The IOTA Foundation has restarted valuable transactions on Tangle, marking an important step in restoring the platform from a major incident. While the IOTA community is currently thrilled about this return, more steps need to be taken to support the platform and rebuild its faded reputation.
The IOTA network has now fully restored
While Tangle has never ceased operations, the IOTA Foundation has suspended valuable transactions for 27 days. It took this bold step after a hacker broke security on Trinity's wallet and stole $ 1.6 million of IOTA from the victims. The fund can suspend these transactions because it still controls Tangle through a tool called Coordinator.
To restore security, the IOTA team has quickly created a seed migration tool that allows users to move their money safely out of the reach of hackers. The tool remained active until March 7. Now, after a few days of processing the information, the Fund has restarted valuable transactions. It still encourages IOTA holders who did not use the migration tool to transfer their money to a new seed themselves, saving their assets to Nano Ledger hardware wallets to ensure safety before the attack.
At the same time, David Sønstebø, co-founder of IOTA, offered compensation to the victims of the hack. Neither he nor the Foundation have detailed the process. In fact, many other seeds may still be compromised, making the number of Iota really stolen unidentifiable.
The work still needs to be done
Although IOTA supporters welcome the response to the hack as an example of team skills and discipline, the platform is still in control. The hacking has undoubtedly created failures for some important projects, such as removing the coordinator. In addition, by controlling the hack, the Foundation will assist the victims and manage the recovery steps over the next few days or weeks.
Perhaps the bigger issue is the reputation of the platform. Although hackers do not break the IOTA core protocol, this incident will forever discredit the Trinity wallet. Until now, Trinity is still considered extremely safe and is the pride of the IOTA Foundation. In fact, the hack was performed because the Foundation allowed third-party integration into the wallet.
IOTA will probably recover from this challenge. It has a well-funded, talented and ambitious development team as well as an enthusiastic support facility. Also, their reaction to the hack was admirable. However, failure to follow appropriate security protocols facilitated a possible hack. Regaining the trust of the cryptocurrency community will require greater effort to prove success moving forward.
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