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PLEASE NOTE: This article has been edited as a result of discussions with the CEO of Charity Engine.
Gridcoin miner Pomegranate has been somewhat of an enigma lately, with lots of users questioning where, and how, they are gathering a magnitude to rival that of GRCPool. At the time of writing, Pomegranate has two active CPIDs, detailed here and here. The first has a magnitude of 15833, while the second sits at 670. This second CPID has only just been advertised with a beacon, so its magnitude is expected to skyrocket over the next few weeks, taking Pomegranate to an estimated total magnitude of near 30,000. This is a significant amount of compute power being brought to bear.
After noticing the odd magnitude growth pattern of the user, and noting they do not take part in the community, @deltik and myself attempted to learn more about the network. We started digging and found that Pomegranate's computer power is generated through a custom BOINC client installed on computers all over the globe.
The software identifies itself as a modified BOINC version 7.0.80, which we believe is actually Charity Engine 7.0.80, a non-public release of Charity Engine that was likely bundled with other software. Note that the latest public release of Charity Engine available on their website is BOINC 7.0.76, which is hardly used by Pomegranate at all. Therefore, most of the clients being used to mine GRC were not downloaded off the Charity Engine website.
Collectively, the BOINC 7.0.80 network of computers Pomegranate controls is already yielding Pomegranate more than 4000 GRC per day. This converts to over $280/day or over $8400/month.
It does not appear that the people who have the BOINC 7.0.80 software computers are getting any sort of Gridcoin related credit, or even know that they are running BOINC tasks for Pomegranate. It's hard to prove the lack of something, but from our research we have found that there have been no announcements of connections to Gridcoin, notices of reward payouts, or community participation. There is one notable exception - Pomegranate claiming the GRC commemorative coin as if they were a legitimate miner.
Why would the user name themselves "Pomegranate" when their connections are to Charity Engine? It appears this is a side operation by Charity Engine to make more money from the network they control, after they were unable to sell off all their compute power to industry. To back this up, the software has previously been used to mine ETH on user machines running both the BOINC 7.0.80 (bundled software) and BOINC 7.0.76 (direct download) copies of their client, until a user questioned the mining on the Charity Engine forums.
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Although inconclusive on their own, here are further findings relating to Pomegranate that concerned us:
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BOINC 7.0.80 is an uncommon version, accounting for 0.58% of all BOINCstats BAM! client versions as of 11 December 2017, yet nearly 100% of Pomegranate's computers run that version.
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The vast majority of clients are a hodge-podge of low-end to middle-of-the-road computers running older versions of Microsoft Windows. Here are the computers belonging to Pomegranate as seen on VGTU, where they forgot to hide their hosts. These hosts have since been hidden.
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If Pomegranate were a real pool where users are aware that their computers are being used for BOINC, like GRCpool, there would be a lot more diversity expected. See CPID 7d0d73fe026d66fd4ab8d5d8da32a611 for an example of one of GRCpool's CPIDs.
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Pomegranate runs yoyo@home, but yoyo@home does not allow weak authenticators. This means that open pools like GRCpool can't allow users on that project because any connected user would be allowed to take over the account. It's likely that the owners of the computers running Charity Engine have no idea about the yoyo@home strong authenticator stored on their machines.
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SRBase discovered that some work units are being wasted because of a bug with BOINC 7.0.80 and publicly asked users to upgrade BOINC, but how can those who don't know about the software installed on their computers know to do this? Charity Engine, just like BOINC, cannot update itself.
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Curiously, PrimeGrid seeded Pomegranate early on. PrimeGrid paid Pomegranate 5000 GRC on 13 August 2017 (worth $161.80 at the time). Transaction here. Notice that the funds came out of S6RimEgrEar84vQpsmVAVFbGkxfJ4i2sec, which is the same address as the PrimeGrid GRC donation address. We discovered that administrator Rytis of PrimeGrid is also an administrator of Charity Engine.
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PrimeGrid sent funds to Pomegranate, even though it wasn't mentioned on the donation page. A Gridcoin ops member got in touch with the PrimeGrid team who explicitly stated that the donations were for new hardware.
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Although PrimeGrid is the one project that funded Pomegranate, that project received the least work done by Pomegranate.
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Pomegranate did refund PrimeGrid 3800 GRC (2100 GRC on 28 August 2017 and 1700 GRC on 30 August 2017). One would expect 1200 GRC more for a full refund, and 1200 GRC was indeed sent on 23 August 2017, but not back to PrimeGrid. Instead, those GRC were sent to an address where the GRC was consequently split up, some of which went to the wallet of user Tholo, an investor in Gridcoin. Source.
We are concerned about what we have uncovered about the Pomegranate network. There has been a lot of debate behind the scenes on whether or not this information should be made public, but we feel the Gridcoin community has a right to know. Pomegranate's Slack account was given ample opportunity to comment and chose not to.
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Hi guys, this is Mark from Charity Engine. Apologies for not chipping in sooner, only just seen this.
First and most important thing; can I just point out that our client is only EVER installed with the user's explicit permission. Jumping to an accusation of "botnet" is entirely unwarranted.
CE is a global computing grid which is doing dozens of commercial tasks along with computing for GRC projects (GRC only gets our surplus, which is a fraction of our full capacity).
Don't understand why you didn't just call or email us, guys. Would have taken 60 seconds.
EDIT: Now I understand why. This is simply a smear by disgruntled GRC miners whose only motivation is removing the biggest fish so they earn more GRC themselves. Duly noted, and we shall now increase our contribution to GRC projects accordingly. Told you we were actually holding back just to be nice, so well done lads. Shot yourselves in both feet.
@guk | Dec. 12, 2017, 2:05 a.m. | Votes: 3 | [
VOTE ]
You are currently earning approx $6000 per month in Gridcoin (@ $0.05 per GRC) and claim it's a 33-33-33 split between you, charities and users.
Yet you are only seeming to be giving out a raffle to end users of $1000 every 2-3 months.
You would need to be selling at around $0.01 / GRC for those figures to add up.
4000GRC per day * 30 = 120,000GRC per month
120,000 * 0.01 = $1200 per month, split three ways is $400
Of course that is before any computing power you sell, again as you claim.
There is money disappearing somewhere along this chain.
Even if it were not and the 33% split was legit, taking 33% of proceeds that could be going to charity and users for not doing much at all is extremly dubious.
When coupled with your charitable claims, with which you used to get various lots of funding, it certainly isn't ethical.
@dutch | Dec. 12, 2017, 2:23 p.m. | Votes: 2 | [
VOTE ]
No, we are stating a series of facts and likely conclusions, then giving you the option to explain why there is so much shady business going on.
If you were not personally on Slack, then who is the Pomegranate account that tried to claim the commemorative coin? You proved your identity through your wallet to try claim that coin to @jringo, so I do not understand how you can claim that was not you.
We have no axe to grind, and have no personal reason to get anyone away from GRC. Quite the opposite. In fact, we would have hoped you can explain why everything looks so shady in a way that alleviated the concerns of the community.
You are not correct. In a perfect world our concern is unfounded and your end users continue to do research. It's fantastic to see the amount of compute your CPID is contributing, but it needs to be above board or it looks really bad for both BOINC and Gridcoin.
Likely conclusions? You mean entirely unfounded and malicious accusations. Botnet? Stealing? Are you serious?
(You keep suggesting we're a one man band, btw. I've never even used Slack. That was a dev. You would know all this if you'd bothered to contact me to get to the truth.)
Since I wrote that comment, I've discovered that you do indeed have an axe to grind, as you're a massive miner yourself. So if we go away, you earn more GRC? Well, colour me amazed.
This also means you understand BOINC, and surely must have also known that our client can only ever be installed with user permission. I am therefore now struggling to see your accusations as honest mistakes.
We have contributed more to BOINC than you know. In fact, without our company's intervention, BOINC might not even exist now. Literally.
Bang out of order, dude.
@guk | Dec. 12, 2017, 7:03 p.m. | Votes: 4 | [
VOTE ]
Even if everything is above board, your business model appears to be predatary and entirely in bad taste.
You get people to install your client with either promises that they are helping charity and could win some money or by the dubious (even when legal) method of bundling it with other software. You then take all of the money earned and give some back to charity and some back to the users.
What your users don't seem to realise is that both they and the charities would be far better off if they ran Boinc themselves and donated half of their earnings to charity. The only people making money from this is yourselves by preying on people who are not informed or are not very computer literate.
Personally my opinion is that you are morally wrong (boarderline legally wrong) in your blatently over-exagerated claims.
- The 33-33-33 split does not add up.
- Elsewhere you state half your profits go to charities which doesn't tie up with the above.
- You claim partnerships with several major charities yet they do not list you as a partner on their websites.
- You claim to have 550,000+ PC's always available and 1million on request yet boinc only has 820,479 computers running in total.
I have no doubt you do give some money to charity and give some back to users, but how your business operates is extremely unethical and distasteful even if you can argue it's just about legal.
How do you think we pay our staff, in candy floss? Share of profits and revenue are not the same thing. This is very basic stuff.
As the prize fund is technically a business expense, not profit, it means the remaining 33-33 is the same as saying 50-50. So yes, we give half the profit to charity. More, in fact. Way more, if you count the value of the computing we donate to science too.
It is illegal under UK law to even mention the charities on our site without written permission from each one. Not amazed that you didn't know this.
We now administer more machines than the rest of BOINC combined, correct. And yes, we can easily ramp up to 1m+ by increasing our marketing spend. I'd call that a massive success, especially given that without us the BOINC user base would still be constantly shrinking, and the BOINC project itself might not even exist by now.
Nothing you claim is unethical, actually is. You've assumed and accused without basic fact checking, just like the OP. Not on.
Yes, CE controls that account. So what? They already knew it was us, it wasn't some massive secret.
If we'd wanted to keep it secret we'd have used multiple CPIDs. Why draw attention if trying to hide?
Only reason we didn't call it CE grid or some such was because we're big enough to 51% the network (EDIT: since been told it changed to PoS) and we didn't want to worry the troops and potentially crash GRC. Indeed, we've been going deliberately easy - which we will now prove.
Meanwhile, I run the company and I'm easy to contact via all the regular channels. That one of our developers had once logged into slack to claim that coin, is of no relevance. They got no reply, so why didn't they call me? Email me? Find me on twitter or LinkedIn?
Because they didn't want answers, that's why. They wanted to smear.
I reacted when the article was posted.
From the article: "it is highly likely Pomegranate is earning GRC illegitimately through unwanted software installed unknowingly on victims' computers".
By now there is more information from the comments and I no longer see the issue. I checked the website and it looks quite clear to me that when installing you are donating computer power.
It is the users responsibility to make sure that what he installs is legit, from a trusted source and functions as intended.
As long as they are contributing to the BOINC projects, paid or not, I see no issue. I have been BOINCing for 15 or so years. Don't really care what client.
I do understand big miners get nervous. Their magnitude drops and they can't do anything about it but to try and blame someone else.
Does gridcoin now need to 'check' what is used to contribute to science? Being the BOINC internet cop. Good luck with that.
As vortac says: it's still contributing to science.
@dutch | Dec. 12, 2017, 3:21 p.m. | Votes: 2 | [
VOTE ]
I would like to return to some of the bullet points here:
> I checked the website and it looks quite clear to me that when installing you are donating computer power.
Yes, but the clients mining BOINC were not downloaded off the website. This was just stated explicitly.
> I do understand big miners get nervous. Their magnitude drops and they can't do anything about it but to try and blame someone else.
Actually, we found out about this months ago and did nothing, mainly due to CM being very opposed to saying anything publicly. It was several big discussions in the Slack channel between many users that made us decide to say something. I personally do not care for mag - check my project selection if you don't believe me (Einstein@home on all GPUs - literally the least efficient).
The other reason is several projects are getting many corrupted results and burned work units, as explained. The Pomegranate account has not fixed this issue.
> Does gridcoin now need to 'check' what is used to contribute to science?
Nope, not at all.
If Gridcoin ops had not acted a few months ago, we would still have Kikipope around. How does it look for BOINC and Gridcoin if the main contributors are these kind of networks?
Let me reiterate: We all want CE to be legit, because their contribution to science is great. I know of several people, including myself, who reached out over the last months and were ignored. Ideally, we would like these concerns alleviated and move on.
Summarized: CE says the are using your computing power when you install their SW. Their SW downloads and installs something else, BOINC, whatever version, from whatever location, modified or not.
It's not unusual that an installer downloads and install other installers. The average user doesn't care.
If the science results are ok for the projects there is no issue for BOINC as a concept.
To me BOINC and Gridcoin don't look any different because of it. The user makes choices and if legit that's the end I think. The grcpool doesn't allow voting. Does that make contribution to science any less? Does that make it worse for BOINC?
This article has botnet in the title, a word with a very negative connotation. It boils down to not agreeing to the way the client is downloaded and someone not responding to you guys?
In the end it seems like a storm in a teacup. I fail to see the issue here. The internet is full of strange things I don't support. Fine, I just don't use them, if they're no good they die anyway.
Edit: before all wars break loose I'm not supporting CE either, don't know what it is and not interested.
> > I do understand big miners get nervous. Their magnitude drops and they can't do anything about it but to try and blame someone else.
>
> Actually, we found out about this months ago and did nothing, mainly due to CM being very opposed to saying anything publicly. It was several big discussions in the Slack channel between many users that made us decide to say something. I personally do not care for mag - check my project selection if you don't believe me (Einstein@home on all GPUs - literally the least efficient).
I don't recall any such communications regarding your allegations against CE.
I am indeed opposed to public slander & doxing of individuals of whom you suspect are committing serious large scale computer crime (running a botnet will get you life in jail).
The best course of action is to contact the BOINC projects direclty, specifically their cyber security divisions - Oxford, IBM, LHC, they all have dedicated teams whom can investigate such claims with greater access to volunteer data.
If not BOINC projects then you should have contacted the authorities with the information you believe you have. Posting a smear piece like this without concrete evidence is likely going to get you sued by CE for public defamation/slander.
I was also curious about the pomegranate cpid, did some searching, and ran across this thread. Timely.
I'll chip in my .02 speaking as only a mid-level "miner", although it's hard to think of BOINC as mining. From all the discussion points on both sides it seems like this is a pretty grey area.
I agree with zamaza in that I think this is actually a gridcoin problem. The incentive for this sort of behavior will only increase as the value of gridcoin increases, making it ever more difficult for regular folk to receive rewards for their compute work in any meaningful way. From the numbers on gridcoinstats.eu, the two pomegranate cpid's are currently collecting a total of ~4430 GRC / day. My understanding is there are ~48,000 GRC rewarded / day, and there are 26 projects receiving cuts of that, which would mean the pomegranate net is currently consuming over 2 entire projects worth of GRC rewards / day. About 2.4 projects worth, to be more specific.
Think about when the value of GRC rises further (it doubled in just the last month or so) - more large operators will likely decide to get in. A bare handful of people controlling networks or warehouses full of machines could easily consume most of the GRC produced per day. Is this a good thing? I tend to think no. It's more compute power for the research, but wouldn't this discourage participation from the wider community of compute volunteers over time? Isn't that wider participation sort of the original point of gridcoin? I get that competition is a good thing to drive productivity and expand compute capability, but unchecked dominance of any market eventually turns into monopoly.