(ETC) Cryptocurrency Ethereum Classic : 51% Attacks Fixed???

Contents

Ethereum Classic hit third 51% attack in a month
CONTENT

  • Hackers made a third 51% attack on Ethereum Classic network per month

  • 7000 blocks were reorganized

  • Some exchanges, including OKEx, are considering delisting ETC

International consortium of news organizations, developing transparency standards.

The Ethereum Classic blockchain again fell victim to a 51% attack that led to the reorganization of over 7,000 blocks. ETС coin dropped to 30th place by market cap.

Ethereum Classic blockchain cannot provide reliable and timely protection against 51% attacks. Hackers attacked Ethereum Classic for the third time in August, gaining control of the blockchain and reorganizing over 7,000 blocks. This is reported by the Bitfly service.

Today another large 51% attack occurred on the #ETC network which caused a reorganization of over 7000 blocks which corresponds to approximately 2 days of mining. All lost blocks will be removed from the immature balance and we will check all payouts for dropped txs.

– Bitfly (@etherchain_org) August 29, 2020

While the Ethereum Classic developers were quick to take action to protect the blockchain from future hacks, these three attacks raise concerns about the security of the network. For example, cryptocurrency exchange OKEx announced a possible delisting of the coin to avoid future losses after the second attack..

Ethereum Classic hit third 51% attack in a month

This is due to the fact that OKEx suffered the most from the first attacks and “suffered losses in the region of $ 5.6 million in ETC”, – said in a statement on August 15..

“OKEx has taken full damages in accordance with its customer protection policy to protect platform users from harm. ETC coins that users have deposited on OKEx remain safe, ”the exchange said after a previous attack.

Ethereum Classic developers need to fix the vulnerability before OKEx makes a decision.

What is 51% attack

More than 51% of miners must approve each transaction.

Ethereum Classic hit third 51% attack in a month

Accordingly, it is very difficult for one person to control 51% of the network, since this would require a huge amount of computing power..

But if someone managed to control the network, then this person could manage the blockchain at their own discretion, for example, for free replenish their account with cryptocurrency or redirect other people’s transactions to their wallet.

What happened

In the latest attack, hackers again managed to gain control of the network and reorganize more than 7000 blocks, which is equivalent to about two days of mining.

The attack was discovered by the Austrian mining company Bitfly, which also identified the previous two attacks, during which hackers reorganized almost 8,000 blocks and stole about $ 9 million, most of which were withdrawn from the OKEx crypto exchange..

ETC Cooperative, a non-profit organization created to financially support the growth and development of the Ethereum Classic protocol, tweeted that it is “aware of today’s attack and is working to test and evaluate the proposed solutions as soon as possible.”.

This is partly due to the lower computing power at the heart of Ethereum Classic compared to larger blockchains like Ethereum or Bitcoin, hence it is not difficult to rent enough computing power for a short time to gain control of the blockchain..

Ethereum Classic hit third 51% attack in a month

There are two options to change the Ethereum Classic algorithm to complicate this process, but they have not been implemented yet..

Market reaction was subdued

At the time of writing, Ethereum Classic is trading at $ 6.8, with little to no change in daily ratio. However, in the long term, the damage may be more significant. The coin has already rolled back to 30th place with a market capitalization of $ 767 million, while the average daily trading volume reached $ 700 million.

 

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Ethereum Classic hit third 51% attack in a month

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