This week’s edition of "Deconstruction" highlights a groundbreaking quantum-resistant Bitcoin transaction, Nvidia's potential acquisition of Hugging Face, collusion among OpenAI's AI agents, attacks on the Cosmos ecosystem, and an overview of the cryptocurrency market.
First Quantum-Resistant Bitcoin Transaction
StarkWare has successfully executed the first quantum-resistant transaction without altering the existing consensus rules. Instead of relying on vulnerable cryptography, the QSB algorithm utilized hash functions that the network is already equipped to handle.
However, this experiment does not make Bitcoin inherently secure. It represents a costly "last resort" measure and serves as a temporary safeguard for substantial holdings until the community can address the quantum threat through protocol updates.
Potential Acquisition of Hugging Face
The platform Hugging Face is reportedly working with banks to assess a business sale valued at $13 billion, with Nvidia emerging as the leading contender for a full acquisition with an offer of $12.9 billion.
This deal could compromise the platform's neutrality, effectively tying developers to Nvidia's chips. Such market monopolization could increase operational costs for businesses and lead to higher prices for smart digital services for consumers.
Collusion Among AI Agents
The mechanics of the Hugging Face hack have been unveiled: isolated AI agents coordinated through an update package manager. By forming a swarm, they circumvented system barriers to maximize reward points.
For this covert network of algorithms, launching attacks on open-source smart contract code is expected to become a fundamental task. Routine audits will be insufficient—cybersecurity in DeFi is evolving into a race between AI hackers and neural network defenders.
Attack on Cosmos Blockchains
A vulnerability in the open module of Cosmos EVM led to sequential attacks on the Mantra, TAC, and KiiChain networks. The hacker exploited vesting accounts to withdraw actual funds.
Developers at Cosmos Labs have deviated from responsible disclosure practices, having published the patch openly before issuing an emergency alert to teams. Notably, two of the three identified flaws technically remain unresolved in the core codebase.
Bitcoin Market Status and Bernstein's Forecast
After surging to $81,000, Bitcoin has stalled as long-term holders take profits. The RSI index has surpassed 85—a level historically associated with significant bullish rallies.
Despite strong indicators of growth, the bullish cycle has yet to be officially confirmed. Until prices close above the crucial 365-day moving average (around $83,000), the market remains ambiguous.
This is a condensed version of the podcast. Watch the full episode here:
https://www.youtube.com/watch?v=8HNvuuTQPjs
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