Phase one of Hybrid Proof of Work (Lynx’ business rules, or HPoW) is expected to activate on, or around, January 23, 2019. The exact date is unknown but HPoW will automatically activate upon the arrival of block 2,630,000. (The release phases of HPoW are published here.) When this occurs, we expect individuals and groups to try and attack the Lynx network. The development team will be watching closely and will issue updates and news via Twitter (@GetLynxio) and the Lynx Discord forum.
Transparency note: As with all crypto projects, Lynx is experimental and is not a sound financial investment. If you are a holder of Lynx and cannot tolerate the risk of complete loss of your Lynx investment, you may wish to transfer your holdings to another coin for the time being.
The information below explains how you should prepare, the risks associated with new business rules, and how you can get involved to help secure the network before HPoW takes effect.
HOW TO PREPARE FOR HPoW
Important safety tips:
- Lynx users should NOT copy wallet.dat files between wallet versions. We discourage reusing the same Lynx address when updating wallets. Instead, coins should be sent to a NEW address created by the new wallet like ours or Coinomi.
- If you use the Desktop Wallet, be sure to enable encryption. Write down your password – you control your coins, so keep good documentation of your password in a safe place.
- If you use Coinomi, be sure to safely store your master recovery phrase. Again, you are responsible for your coins, so distribute a partial list of your recovery phrase words to friends and family. No one person, other than you, should have all words in your recovery phrase.
RISKS ASSOCIATED WITH THE HPoW TRANSITION
A risk with HPoW, especially during Phase One, is a stuck network. What does that mean? When the Lynx network is stuck, it means blocks are not being found fast enough by miners and the time between blocks is MUCH longer than the average 30 seconds we expect. During Phase One of HPoW’s implementation, we expect a very dynamic time between blocks. Some blocks will be mined seconds apart and others might be hours. If a transaction is waiting for a block, this would appear to be stuck. The solution? Patience. Just wait! Our long time friends at multipool.us will continue to support the Lynx network so extremely long times between blocks should be rare, but it could happen.*
If you are sending coins to/from an exchange (or sending to/from an individual) and a 51% attack occurs on the Lynx network, those coins MIGHT be at risk. To be clear, the only Lynx at risk of theft or manipulation are coins being sent or received during or after the transaction period during a 51% attack. That’s why we recommend storing your coins and not trading anything until a week or so after HPoW takes effect. Again, follow us on Twitter (@GetLynxio) and the Lynx Discord forum for the latest, official, status and safety updates.
R-value Address Reuse Attack
This attack was used recently against a few Lynx users who had been ‘moving’ their legacy wallet.dat file between Kittehcoin and Lynx wallet versions. Again, to minimize the risk of theft, send your coins to a Coinomi wallet or newly installed Lynx desktop wallet v16.3.2. And, do NOT copy wallet.dat files between wallet versions. Instead, coins should be sent to a NEW address.
Unknown Attack Vectors
By Jan 16th, 2019, a newly created Testnet will be live and anyone can probe it as they like. Feel free to ask (in the #development channel via Discord) for free Testnet Lynx Coins if you want to experiment in a safe, testing-only version of Lynx. We encourage you to use the Testnet space to try a 51% Attack (or simulate other kinds of attack). Every time an attack on the project occurs, we learn from and improve from it. Over time these attacks make Lynx better. We welcome new ways to improve the project.
HOW YOU CAN HELP SECURE THE LYNX NETWORK AGAINST AN ATTACK
- Leave your desktop wallet open and running during the day. We recommend leaving at least 10,000 Lynx coins in a single address in your desktop wallet. This will help HPoW. The rest of your coins can be safely stored away elsewhere. Having more coins in each desktop wallet address does not help you win more blocks. You can create as many addresses in your desktop wallet as you like with that amount of Lynx in each. These unique addresses help HPoW work. It’s kind of like Proof of Stake, but it’s still Proof of Work mining.
- If you don’t want to store any coins in your desktop wallet for the highest level of safety, create a lynx.conf file with these contents. We would recommend you add your own Coinomi addresses to your lynx.conf file to possibly win some miner rewards.
- If you have a Raspberry Pi, get the latest ISO and flash your SD card. It is completely automated so no further configuration is needed. It will mine for you. Again, you can update the lynx.conf file on your Pi if you like with your own Coinomi addresses so you can get some of those miner rewards.
- Create a USD $5/m 1GB VPS with a vendor like Linode.com. Use the 1 line install script as root on your Linode and it will completely build itself. When it’s done it will mine too. You can customize the lynx.conf script with addresses from your personal Coinomi stash too!
Currently, Lynx discourages mining for profit and running a mining pool for Lynx isn’t profitable. (See the Lynx white paper for more details.) And, the implementation of Hybrid Proof of Work makes it even more difficult to win predictable blocks. Also, miniature USB mining rigs are poorly designed for the HPoW concept. While they might win one block from time to time, the design of HPoW restricts them from generating enough blocks to legitimize the expense of hardware or electricity.