Dexaran
Dexaran
Feb 26, 2018 · 5 min read

Description.

ERC20 is the most common Ethereum token standard. It should be noted that it is also the first Ethereum’s token standard as well.

How it is causing money losses.

Expected transaction behavior: a transaction is executed and it is resulting in value transfer. In case of error, transfer of value will not occur.

ERC20 token standard bug explanation.

Software bug definition: https://en.wikipedia.org/wiki/Software_bug

A software bug is an error, flaw, failure or fault in a computer program or system that causes it to produce an incorrect or unexpected result, or to behave in unintended ways.

The intention of transfer function is to transfer tokens.

transfer
function transfer(address _to, uint256 _value) returns (bool success)
Send _value amount of tokens to address _to

Common types of software flaws that lead to vulnerabilities include: … Blaming the Victim prompting a user to make a security decision without giving the user enough information to answer it.

The statement “… prompting a user to make a security decision without giving the user enough information to answer it. “ which is a property of Software Vulnerability, is of decisive importance here.

Lost tokens computed at 27 Dec, 2017.

  1. QTUM, $1,204,273 lost. watch on Etherscan
  2. EOS, $1,015,131 lost. watch on Etherscan
  3. GNT, $249,627 lost. watch on Etherscan
  4. STORJ, $217,477 lost. watch on Etherscan
  5. Tronix , $201,232 lost. watch on Etherscan
  6. DGD, $151,826 lost. watch on Etherscan
  7. OMG, $149,941 lost. watch on Etherscan
  8. STORJ, $102,560 lost. watch on Etherscan

Conclusion.

Let me summarize what is stated above. The specific feature of ERC20 token standard design that caused millions of dollars loss for token users IS a Software Bug and it can be classified as Software Vulnerability.

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