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safekeeping function). European Securities and Markets Authority (2019) Advice: Initial Coin Offerings and Crypto-
Assets, available at https:// bit .ly/ 2CXSjFc
253 As noted by the European Securities and Markets Authority, ESMA See European Securities and Markets Authority
(2019) Advice: Initial Coin Offerings and Crypto-Assets , available at https:// bit .ly/ 2CXSjFc, these requirements may also
apply in relation to the initial recording of securities in a book-entry system (notary service), providing and maintaining
securities accounts at the top tier level (central maintenance service), or providing, maintaining or operating securities
accounts in relation to the settlement service, establishing CSD links, collateral management.
254 European Securities and Markets Authority (2019) Advice: Initial Coin Offerings and Crypto-Assets , available at https://
bit .ly/ 2CXSjFc
255 Rocco, G (2018) Emptied IOTA Wallets: Hackers Steal Millions Using Malicious Seed Generators, available at http:// bit .ly/
2SmVlsI
256 Binance (2019) Binance Launches DEX Testnet for the New Era of Peer-to-Peer Cryptocurrency Trading, available at
http:// bit .ly/ 2XZJke2
257 It has online order matching, versus offline matching in centralized exchanges.
258 Novikov, I (2018) Why Are Crypto Exchanges Hacked So Often?, available at http:// bit .ly/ 2Y2lDC1; CCN (2018) The
Common Tactics Used to Hack a Cryptocurrency Exchange, available at http:// bit .ly/ 2YgETj0
259 Rosic, A (2017) 5 High Profile Cryptocurrency Hacks, available at http:// bit .ly/ 32wI8lL
260 See the Coincheck failure in 2018 of USD 500 million off XEM currency due to failure to use multi-signature wallets.
261 Attacker effort to obtain 2 of 3 private keys would be substantial. Rosic, A (2017) Paper Wallet Guide: How to Protect
Your Cryptocurrency, available at http:// bit .ly/ 2xSTF0T
262 Novikov, I (2018) Why Are Crypto Exchanges Hacked So Often?, available at http:// bit .ly/ 2Y2lDC1
263 James, H (2018) First Successful Test Blockchain International Distribution Aid Funding, available at http:// bit .ly/
2LswbZ6
264 Such as walletgenerator.net and Bitcoinpaperwallet.com create QR codes out of the alphanumeric string to potentially
generate additional security.
265 See services such as https:// walletgenerator .net/ which convert addresses into QR codes.
266 Popular hardware wallets include the Ledger Nano, Trezor One, KeepKey, Archos Safe-T Mini. See https:// trezor .io/ ;
https:// www .ledger .com/ ; http:// www .archos .com

267 Helperbit does not require any software download, as the procedure for generating the passphrase takes place on the
client’s internet browser.
268 These nodes may be trustless.
269 As noted below, some newer blockchains design solutions so that some parties can only read the blockchain, while
others can also sign to add blocks to the chain
270 Even so, there have been instances where identities of blockchain users have been discovered using transaction graph
analysis. This uses the transparency of the transaction ledger to reveal spending patterns in the blockchain that allow
Bitcoin addresses – using IP addresses and IP address de-anonymization techniques - to be bundled by user. Ludwin, A
(2015) How Anonymous is Bitcoin? A Backgrounder for Policymakers, available at https:// goo .gl/ DJnIvP.
271 This also depends on the blockchain design. A blockchain can have all of its data encrypted, but signing/creating the
blockchain wouldn’t necessarily be dependent on being able to read the data. An example may be a digital identity
blockchain.
272 Lewis, A (2017) Distributed Ledgers: Shared Control, Not Shared Data, available at https:// goo .gl/ KieCHG.
273 Ki-yis, D & Panagiotakos, K (2015) Speed-Security Tradeoffs in Blockchain Protocols, available at https:// goo .gl/ Fc2jFt
273
274 Ethereum currently manages a maximum of 20 tps, while Bitcoin original only reaches a capacity of 7 transactions per
second. Bitcoin cash reaches 61 transactions per second (tps). The Visa network reaches 24,000 tps. See Cointelegraph
(2019) What Is Lightning Network And How It Works, available at http:// bit .ly/ 2XXJsKY
275 Coined by Vitalik Buterin, Ethereum Founder. NeonVest (2018) The Scalability Trilemma in Blockchain, https:// bit .ly/
2Y3dEpb
276 See all of the following. Fischer, M; Lynch, N & Paterson, M (1985) Impossibility of Distributed Consensus with One
Faulty Process, available at http:// bit .ly/ 2Z1YT6q; Gilbert, S & Lynch, N (2002) Brewer’s Conjecture and the Feasibility

72 Security Aspects of Distributed Ledger Technologies