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Chia Network announced that due to the vulnerabilities identified during the audit, it decided to issue more secure CAT2 tokens instead of CAT1 tokens.
The developers clarified in the blog that the decision toThe release of a new token was decided in connection with the discovery of a vulnerability in the protocol’s security system after the external auditor Trail of Bits identified shortcomings in the CAT1 token standard. The company warned that it would stop the use of the CAT1 token on July 26 at 20:00 (Moscow time) after the creation of block No. 2,311,760 and launch CAT2 into the blockchain.
Chia Vice President of Products Paul Hainsworth said it took quite a long time to study the vulnerability and make a decision:
“We had to be absolutely sure that this was a serious vulnerability. Now we need to complete the lifecycle of CAT1, fix it and upgrade to CAT2.”
Nowadays many blockchain protocols are hiringauditors to find weaknesses, but reissues of tokens occur infrequently. Hainsworth emphasized that as a “blockchain aimed at enterprises and institutions,” Chia Network conducts regular system reviews.
Chia created CAT to issue tokenized versions of stocks, bonds and other assets on top of the Chia blockchain. According to Haynesworth, the tokens are separate from the Chia blockchain's native XCH cryptocurrency:
“CAT is an artifact, built on top of XCH, but it is a separate type of asset altogether.”
The update will not affect XCH, a company representative assures. Although Chia encourages holders to cancel current orders to sell XCH for CAT1 to avoid buying “worthless tokens.”
Let us recall that the arrival of the new Chia project on the market was marked by a shortage of SSDs in Asia; they were bought en masse by miners in order to mine the project’s cryptocurrency.
