Ledger has warned that BIP-110, a Bitcoin soft fork proposal, lacks built-in replay protection. The hardware wallet manufacturer issued the security reminder on Aug. 9. Ledger said that if BIP-110 creates an independent chain, BTC holders might receive the same amount of the corresponding asset on the new chain. In the early phase, however, both chains could accept identical signed transactions. That creates a replay risk: users who transfer or sell assets on the BIP-110 chain may have those transactions replayed on the Bitcoin main chain, causing the corresponding BTC to be transferred out at the same time. Ledger said its devices can technically sign the relevant transactions. Still, the company advised users not to claim or operate BIP-110 fork coins until replay protection is added. BlockBeats reported the announcement. The warning concerns how soft fork chains without replay protection can affect holders who move newly received fork assets. If a transaction on the fork chain is valid on both chains, moving or selling the fork coins could also move BTC on the original chain. Ledger's core advice is to wait for replay protection rather than act immediately.
Ledger, the hardware wallet maker, issued a security warning on Aug. 9 about the BIP-110 Bitcoin fork. BIP-110 is a soft fork proposal that does not include built-in replay protection, Ledger said.
If the fork creates an independent chain, BTC holders could receive an equivalent amount of the corresponding asset on the new chain. But in the early stage, both chains may accept the same signed transactions. That means a user who tries to transfer or sell holdings on the BIP-110 chain could see the transaction replayed on the Bitcoin main chain, sending the corresponding BTC out of the wallet as well.
Ledger added that its devices can technically sign these transactions. Still, it recommends users not claim or operate BIP-110 fork coins until a replay protection mechanism is added.
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