Ethereum Classic ETC

$4.35
Market Cap $ 467.563 MM (#18)
24h Volume $ 100.098 MM
Chg. 24h: 1.08%
Algo. score 2.5/5  (#1016)
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Ethereum Classic News

Ethereum Classic Beats Ethereum Despite Facing a 51% Attack

Despite undergoing a 51% attack, Ethereum Classic seems to be performing better than Ethereum. According to an observation made by a Twitter user, ETC has beat ETH by 7%. The Twitter user compared data of both ETC and ETH of January 7th and 13th. Per the data presented, On January 7th and 13th, ETC was valued at $ 5.12 and $4.26 respectively, a 16.7% drop in a week. On the other hand, Etherum fell from $153.85 to $117.32 dropping 23.7% in a week. This is a 7% decline more than that of Ethereum. At the time of writing, both coins have ticked slightly with ETC trading at $4.28 and ETH at $118.90. (KE)

9 minutes ago

Ethereum Classic Labs Announces New Dedicated ETC Development Team

The Ethereum Classic Labs incubator recently announced the launch of ETC Labs Core, a new development team dedicated to developing core Ethereum Classic projects and helping to support the ETC blockchain by providing tools for dApp development, mining, and services. The most immediate focus of the team is to review the upcoming Constantinople hard fork being implemented on the Ethereum blockchain so that the team can complete the Ethereum Classic Improvement Proposal 1045, which will introduce support for some parts of Ethereum’s Byzantium and Constantinople upgrades on the ETC network. (JF)

6 hours ago

Still confused about ETC 51% attack? Dr.zhou @qc_qizhou sh...

Still confused about ETC 51% attack? Dr.zhou @qc_qizhou shows that with PoSW, this ETC double-spending attack may… https://t.co/boa3CgC5Hq

11 hours ago

The Crypto Market Bleeds, Drops Another 4%

Within an hour, the crypto market dumped $4 B causing the market valuation to fall from $122B to $118B on late Sunday night. The crypto market decline saw major cryptos declining significantly to below their key support levels. Bitcoin fell below $3600 to hit a low at $3545. ETH, LTC, BSV, ADA, IOTA, ETC, and BCH dropped more than 5%. XRP lost 1.7% to trade at $0.317. Tron, which is trading at $0.023, lost its 7th position and is back to the 9th place by market capitalization. The bleeding in the crypto market has seen its valuation drop by another 4%. Currently, the market has ticked slightly and is valued at $119. B. (KE)

a day ago

Ethereum Classic Block Rewards Have Skyrocketed

After the recent 51% attack on Ethereum Classic (ETC), miners are now receiving 200 ETC per block instead of the usual 4 ETC per block. Data from a variety of block explorers shows that this is not a “one-off” glitch and one miner received 424 ETC as a block reward. The reason for the high block rewards appears to be linked to an entity paying humongous transaction fees. It's possible that as the 51% attack continues, bribes paid to miners could be one way of ensuring that transactions are not reversed. This is a developing story that will be updated as more information becomes available. (RS)

a day ago

Cybersecurity Firm Discovers Private Ethereum Classic Mining Pool Accumulating Hashing Power

SlowMist, a Chinese cybersecurity firm that has been helping to investigate the recent 51% attack on Ethereum Classic (ETC), has released an updated warning that they have discovered a private ETC mining pool that seems to be hoarding a large amount of hashpower during the last few days. Over the past 24-hours, the pool has reportedly accumulated 10% of the total hashpower and is ranked 4th after EtherMine, NanoPool and MiningPoolHub. At one point, the pools hashrate jumped from 300 GH/s to 3,263 GH/s, briefly making it the largest of all the ETC mining pools. (JF)

2 days ago

Crypto Expert Says Recent Market Sell-off is a Taste of Future Volatility

David Thomas, the co-founder of GlobalBlock recently noted that the 51% attack on ETC and the strange Ethereum transaction involving 319,000 ETH are responsible for the recent sell-off. According to David, these factors caused fear within the crypto market, triggering a selling force that that saw the crypto market crash. David also believes that ETH’s recent surge could have spurred the decline as investors that bought it during the December sold the asset to make profits. He went on to state that this dropoff indicates that the crypto market will remain volatile until more institutional investors enter the market. (KE)

2 days ago

Bitcoin Plunges to Trade at the $3,650 Level; Leading Cryptocurrencies Plummet

Today, most of the top 20 cryptocurrencies have registered moderate price swings, while some have recorded double-digit gains. As at the time of writing, 5:52 PM UTC, BTC its trading at $3,668. The weekly chart shows that the current price is below $3,878, which was BTC’s price one week ago and also below $4,108, which was BTC’s mid-week high on Tuesday. XRP has shed 2.08% on the day and is trading at $0.3296, and ETH has lost 1.29% to trade at $126.67. The most significant gainers are BSV, BCH, and ETC with over 12%, 2%, and 1% gains respectively. (KE)

2 days ago

Ethereum Classic Investment Trust Funds Are 'Not at Direct Risk' Says Grayscale Investments

Grayscale Investments, the organization behind the Ethereum Classic Investment Trust (ETCG), a financial product that tracks the price of Ethereum Classic (ETC), has recently told a “few” investors that the funds in the product aren’t at risk.

3 days ago

Grayscale Reassures Clients About Ethereum Classic Trust Funds Following 51% Attack

The Grayscale Investment firm, which is owned by the Digital Currency Group (DCG), has recently sought to reassure clients of its Ethereum Classic Investment Trust (ETCG) that the underlying ETC assets are safe and unaffected by the recent 51% attack the ETC network experienced. They explained that the only funds that can be double spent are the original tokens from the attacker, so all ETC in the fund were untouched. The biggest damage that can come from an attack is a drop in price/value and trust in an asset, but ETC has held up quite well amidst an overall downturn in the crypto market. (JF)

3 days ago

ETC contributor Tomaz Kariz @phyrooo debunks the various mis...

ETC contributor Tomaz Kariz @phyrooo debunks the various misconceptions surrounding 51% attacks https://t.co/qkFGh6M1Pu

3 days ago

CoinFi CEO Believes the Recent Market Correction was 'Premeditated'

CoinFi co-founder and CEO Timothy Tan believes that this week’s crypto market correction was partially premeditated. Tam alluded to a recent transfer of 40,000 Ethereum ($5 million) that was transferred to an unnamed exchange shortly before the market corrected. According to Tam, this created a wave of bearish pressure that led to a 15 percent decline in Ethereum price and while Tam has not proved that an exchange colluded with whoever transferred the funds, he did say that typically a large transfer of Ethereum to an exchange “indicates an intent to sell”. Tam then explained that if there is a crypto selloff on one exchange it tends to “compound like dominoes” to other exchanges as arbitragers will exploit the price discrepancy. Tam also pointed to the 51% attack against Ethereum Classic and the lack of ETC price degradation throughout the attack. (RS)

4 days ago

Gate.io To Cover For Stolen Ethereum Classic

Cryptocurrency exchange Gate.io lost 40,000 Ethereum Classic (worth approx. $184,000) to a 51% double-spend attack. Though the mistake is not on the exchange's part, the US-based exchange has agreed to compensate users for their lost funds. Most exchanges have locked deposits and withdrawals of Ethereum Classic, while Coinbase has completely blocked trading. Some exchanges have implemented deposits with a minimum confirmation of 500. Since Proof of Work (PoW) is one of Ethereum Classic's biggest selling point, they will not be switching to Proof of Stake. However, there is no solution yet to prevent another such attack. Ethereum Classic (ETC) is priced at $4.46, losing 3.19% in the last 24 hours. Gate.io saw a volume of $58 million in the last 24 hours. (VS)

4 days ago

The Ethereum Classic 51% Attack: How It Happened and Why the Price Didn't Crash - Ep.055

Charlie Lee, the creator of Litecoin, discusses this week's 51% attack on the Ethereum Classic blockchain. He describes how the attacker was able to gain control of more than 51% of the network, why it was inexpensive for them to do so, how they profited from their attack and who loses money in such an attack. We talk about what types of blockchains are susceptible to these types of attacks, whether or not Coinbase or other exchange will de-list ETC and why the price of ETC hasn't dropped -- and what that means for cryptoeconomic theories around 51% attacks. Thank you to our sponsors! CipherTrace: http://ciphertrace.com/unconfirmed">http://ciphertrace.com/unconfirmed Episode links: Coinbase blog identifying the 51% attack: https://blog.coinbase.com/ethereum-classic-etc-is-currently-being-51-attacked-33be13ce32de"> https://blog.coinbase.com/ethereum-classic-etc-is-currently-being-51-attacked-33be13ce32de Charlie's tweet about how a coin that's dominant in its respective mining algorithm will not be vulnerable to 51% attacks: https://twitter.com/SatoshiLite/status/1082369887278837763"> https://twitter.com/SatoshiLite/status/1082369887278837763 Charlie's tweet about how only decentralized blockchains are susceptible to 51% attacks: https://twitter.com/SatoshiLite/status/1082491687169998848"> https://twitter.com/SatoshiLite/status/1082491687169998848 Haseeb Qureshi tweet storm about the ETC 51% attack: https://twitter.com/hosseeb/status/1082815549132816384"> https://twitter.com/hosseeb/status/1082815549132816384

4 days ago

Crypto Exchanges Tend to Be the Most Hurt by 51% Attacks

Following the recent 51% attack on Ethereum Classic (ETC), Coinbase released a statement showing that it bore the brunt of the attack and would have to absorb around $1.1 million in losses. This announcement highlights the fact that with most 51% attacks, crypto exchanges (and their users) tend to be the main victims as they end up having to cover the costs. As far as the ETC network goes, things are back to business as usual and it took about a day for the price to recover from the negative attention brought by the 51% the attack. (JF)

4 days ago

Daily Crypto Roundup 1/7/2019

Today in the crypto world, CoinFLEX announced crypto-settled futures, Coinbase found an Ethereum Classic double spend hack, Ledger announced a new Bluetooth wallet and Japan considered a crypto exchange-traded fund (ETF). Kraken also revealed the burden of government subpoenas and Charlie Lee tweeted about “bitcoin extremists”. Crypto Insider additionally released a piece on bitcoin’s market journey and the growth that lies ahead. Catch up on the details: CoinFLEX Exchange Offers Physical Crypto Futures On Asian Market According to news from Bloomberg today, Crypto Insider reported on a new crypto futures operation stemming from CoinfloorEX. The exchange, CoinFlex, will be open on Asian markets and will feature physical cryptocurrency backing. In affiliation with Britain’s Coinfloor crypto exchange, CoinfloorEX rebranded to CoinFLEX. Roger Ver, among others, is the reported owner of the new Hong Kong-based CoinFLEX operation. Starting next month, CoinFLEX is said to offer derivatives on several top crypto assets, including bitcoin, bitcoin cash, and ethereum. Read on Crypto Insider Coinbase finds ETC double spend hack On January 5th, Coinbase found a flaw in the Ethereum Classic platform that allows for a double spend attack. Coinbase reported the issue on Twitter, stating “Coinbase detected a deep chain reorganization of the Ethereum Classic blockchain that included a double spend. In order to protect customer funds, we immediately paused movements of these funds on the ETC blockchain.” Read on Crypto Insider Ledger Crypto Wallet Goes Mobile With Bluetooth-Ready Nano X According to an announcement, yesterday at the Consumer Electronics Show (hosted in Las Vegas), dominant crypto hardware wallet producer Ledger has unveiled a new wireless product called the Nano X. The new Nano X hardware wallet includes Bluetooth capabilities, making it compatible with mobile devices. Ledger also developed a mobile app for the product. Read on CoinDesk Japan Explores Crypto ETFs After Snubbing Futures According to a Bloomberg report today, Japan has decided not to approve cryptocurrency-based derivatives products. They are, however, reportedly still considering crypto exchange-traded funds (ETFs). Japan’s “Financial Services Agency [FSA] is currently gauging industry interest in ETFs tracking digital currencies, according to a person familiar with the agency’s thinking who requested anonymity discussing private plans,” explained Bloomberg. The FSA decisions are the result of a lengthy investigation concerning the logistics behind the infamous and sizeable Coincheck hack last year. Read on Bloomberg Crypto Exchange Kraken Says US Subpoenas Becoming ‘Barrier to Entry’ According to compiled information, the Kraken exchange has expressed concerns with this past year’s government inquiries. Kraken’s 2018 report revealed “that the law enforcement and other inquiries it has received from various government agencies around the world have almost tripled year on year,” reported CoinDesk. Kraken faced 475 subpoenas last year. In 2017, the organization only received 160. U.S. agencies sent 315 of last year’s 475 subpoenas. Kraken stated these requests to be time-consuming and costly. Read on CoinDesk Litecoin Founder Stokes Debate Over ‘Bitcoin Extremists’ Tweet Litecoin’s Charlie Lee started a controversial tweet debate yesterday on the state of bitcoin maximalists, calling them “extremists”. “Some self-proclaimed Bitcoin Maximalists are actually Bitcoin Extremists. They think all other coins are scams and will go to zero. Maximalists think Bitcoin is and will remain the dominant cryptocurrency but there is room for altcoins to exist and even do well,” Lee tweeted. Lee’s tweet received a bevy of responses and backlash, as one would expect from such a tweet. Read on CoinTelegraph The post Daily Crypto Roundup 1/7/2019 appeared first on Crypto Insider.

4 days ago

Coinbase finds ETC double spend hack

Based on research conducted on January 5, Coinbase has found a flaw in the Ethereum Classic (ETC) blockchain. The flaw features a double spend loophole. Details Via a tweet today, Coinbase warned customers of the double spend problem and have halted ETC blockchain transactions for customer protection. On 1/5/2019, Coinbase detected a deep chain reorganization of the Ethereum Classic blockchain that included a double spend. In order to protect customer funds, we immediately paused movements of these funds on the ETC blockchain. Read more here: https://t.co/vCx89dz44m — Coinbase (@coinbase) January 7, 2019 Coinbase revealed further details in its blog post on the subject. “Coinbase detected a deep chain reorganization of the Ethereum Classic blockchain that included a double spend,” the post noted. “Subsequent to this event [detection and ETC fund movement pause], we detected 8 additional reorganizations that included double spends, totaling 88,500 ETC (~$460,000).” Bitcoin and other Proof-of-Work assets’ security and effectiveness depends on mining honesty and power. If someone has sufficient resources, they potentially can throw off the network’s honesty through “chain reorganization”. If a single miner has more resources than the entirety of the rest of the network, this miner could pick an arbitrary previous block from which to extend an alternative block history, eventually outpacing the block history produced by the rest of the network and defining a new canonical transaction history.” Greater manipulation is possible if the miner also holds a sufficient amount of the associated coins, in addition to the above-mentioned mining power. Coinbase will notify customers on ETC’s status and support after safety investigation has been completed. Reactions In a recent Tweet, Ethereum Classic said it has not tried to “hide or downplay” the situation and is looking into the situation further. To be clear we are making no attempt to hide or downplay recent events. Facts are facts and as the situation develops we'll soon get a full picture of what actually took place.Linzhi is testing ASICS. Coinbase reported double spends; both may be true. In time we will see. https://t.co/bbq6eqIoiS — Ethereum Classic (@eth_classic) January 7, 2019 It’s of little surprise that the XRP community chimed in on the situation, commenting on Coinbase’ post in what appeared to be frustrations against Coinbase not having added XRP to its platform as of yet. “No chance of a 51% attack on the XRP blockchain,” said one commenter. Another commenter noted, “Weird. This has never happened to #XRP. Phew! Glad I'm all in XRP. Did I mention XRP is immune to double-spend attacks? No? XRP is immune to double-spend attacks. Awaiting wealth transfer.. — galgitron (no price predictions) (@galgitron) January 7, 2019 One enthusiastic Twitter member expressed an interesting counter-argument to XRP fans’ comments, describing XRP as a security. Previous ETC action Last month, Crypto Insider reported on Ethereum Classic and its associated drama as one of its development teams shut down. Last year, Crypto Insider also interviewed 2 key members of the ETC community: ETC Cooperative Director Anthony Lusardi and ETCDEV business development expert Donald McIntyre. According to Coinmarketcap data, ETC is currently priced at $5.02 at the time of writing, down from $5.48 yesterday. The post Coinbase finds ETC double spend hack appeared first on Crypto Insider.

4 days ago

Daily Crypto Roundup 1/9/2019

Today in the crypto space, bitcoin revealed bullish sentiment, a security firm investigated the recent ethereum classic hack and Tron hired a former Securities and Exchange Commission (SEC) employee. Qtum also introduced atomic swaps and Bill Miller commented on Ripple. Catch the details on today’s action: Bullish Sentiment For Bitcoin Is At A 5-Month High A CoinDesk report today showed positive chart sentiment regarding bitcoin. “The ratio of long-to-short positions placed on bitcoin (BTC) has reached its highest level in over five months on cryptocurrency exchange Bitfinex,” the media outlet noted. CoinDesk also noted the presence of an inverse head and shoulders price chart formation, a bullish pattern possibly giving bitcoin bears a reason to question further downward prices. Read on CoinDesk Security Firm Asks Exchanges To Help It Find Ethereum Classic ‘Attacker’ SlowMist, a chinese security operation, recently released a Medium article which stated pertinent information regarding the recent ethereum classic (ETC) hack. According to a CoinDesk report on the subject, SlowMist’s Medium post noted three specific wallet addresses and four transaction hashes responsible for the network reorganization hacks, leading to double spend activities. SlowMist reportedly is still on the hunt to find locations associated with the mentioned addresses. The ethereum classic team is currently working with SlowMist to further investigate the situation. Read on CoinDesk Crypto Platform Tron Hires Former SEC Attorney As First Chief Of Compliance According to a press release today, CoinTelegraph reported Tron has picked up a new employee to head up the project’s compliance division. A former U.S. Securities and Exchange Commission (SEC) supervisory attorney, David Labhart joined the Tron team under the job title of chief compliance officer and co-general counsel. Read on CoinTelegraph Decentralized Platform Qtum Introduces Bitcoin Atomic Swaps To Its Mainnet Today, CoinTelegraph reported on a press release stating the initiation of bitcoin atomic swap functionality to Qtum’s blockchain. Atomic swaps allow one crypto asset to be traded directly for another, without involving a cryptocurrency exchange or other platform. “The implementation of Qtum-to-BTC atomic swaps has been achieved with the use of the Hash Time-Locked Contracts (HTLCs) technology and is based on the code of the open-source cryptocurrency Decred,” CoinTelegraph noted. Read on CoinTelegraph Hedge Fund Chairman Bill Miller Skeptical Of ‘Overdone’ Ripple Via an interview with CNBC, long-time bitcoin advocate Bill Miller (Miller Value Partners chairman and CIO) revealed he has adjusted his fund’s crypto asset holdings. “We’ve retained about a ten percent weighting in Bitcoin and Bitcoin Cash together, and the other 90 percent is now in a separate fund,” Miller said in the CNBC interview, as noted by Bitcoinist. Miller’s fund first started accumulating bitcoin back in 2014. Over the years, the fund picked up their bitcoin at an average price of $350 per BTC. Miller is unsure whether or not the fund will involve itself with other cryptocurrencies. He did, however, express skepticism toward Ripple and associated XRP. Read on Bitcoinist The post Daily Crypto Roundup 1/9/2019 appeared first on Crypto Insider.

4 days ago

👏👏“The analysis shows that with PoSW, this ETC double-spendi...

👏👏“The analysis shows that with PoSW, this ETC double-spending attack may require about 110 TH/s or 650,320 ETC ($3… https://t.co/p52aARMoqp

4 days ago

Cryptocurrency Scammers Are Exploiting Ethereum (ETH) Hard Fork Concerns

According to a report, digital scammers are taking advantage of the forthcoming hard forks in Ethereum (ETH) and Ethereum Classic (ETC). Two alleged hard fork versions are trying to swindle the users of both ETH and ETC. Reportedly, Ethereum Nowa claims to fork away from ETH while Ethereum Classic Vision claims to fork away from ETC. As per the report, the team at Guarda reported that the two forks are scams. (VK)

4 days ago

Fallout from ETC 51% Attack; Coinbase Suspends ETC Transactions

Ethereum Classic (ETC) was hit with a 51% attack this week. According to some reports, the digital asset has also experienced some block reorganizations that included double spends. […]

5 days ago

OriginalMy fala sobre ataque da Ethereum Classic

Por: Livecoins Uma das mais famosas startups ligadas ao setor de criptomoedas brasileira, a OriginalMy se pronunciou a respeito do ataque 51% que aconteceu na rede da Ethereum Classic. A criptomoeda, que é top 18 no market cap no momento da escrita deste, passou maus bocados nos últimos dias, pois ao que tudo indica, o ataque 51% parece estar cada vez mais confirmado. O caso poderia ter afetado os serviços da OriginalMy, que possui como uma das ferramentas a guarda de registros na blockchain da Ethereum Classic. Só que a empresa também realiza a guarda em outras blockchains, além de outras medidas de segurança, o que faz com que informação de seus clientes fique sempre resguardada. O CEO da empresa, Edilson Osorio, lançou no blog oficial da empresa uma nota sobre o caso, em que indica que há redundância dos dados em várias blockchains, sendo Bitcoin, DCR e Ethereum Classic, com opcional de Ethereum para empresas. Conforme relata Edilson, “os ataques 51% são possíveis de acontecer em blockchains verdadeiramente abertos, distribuídos e descentralizados”. Em uma investigação interna a exchange Coinbase foi uma das primeiras a detectar o caso, ainda no dia 05 de janeiro. No dia 07 de janeiro, a exchange alertou pelo seu Twitter que mais de U$ 1 milhão de dólares em criptos poderiam ter sido alvo de gastos duplos. No último dia 08 de janeiro, a exchange Gate.io veio a público soltar a sua versão dos fatos, e de acordo com seus pesquisadores, constataram que realmente houve um ataque na rede da ETC. A exchange não foi capaz de verificar a tempo o caso, e teve ordens executadas na sua plataforma ao que tudo indica pelo endereço utilizado pelos hackers, o que causou aos traders da plataforma enormes prejuízos, com mais de 40 mil ETC perdidos no caso (cerca de R$ 741 mil, ou 49 BTCs na cotação do dia 09 de janeiro). A Gate.io colocou as confirmações para ETC em 500 como medida de segurança, e prometeu que vai ressarcir o prejuízo aos seus usuários que foram lesados pelo caso, visto que tiveram ordens de venda incomuns que causaram danos. Ainda em seu estudo, a exchange recomendou a comunidade Ethereum Classic e a equipe de desenvolvedores que contruam novos mecanismos de consenso para evitar que casos assim aconteçam na rede, como o POS por exemplo, semelhante ao que a Ethereum está para fazer. As altcoins possuem o custo de ataque 51% muito menor do que na rede Bitcoin, e este é um fato lamentável que ocorreu na rede ETC que ainda está sendo digerido pela comunidade cripto mundial. O artigo OriginalMy fala sobre ataque da Ethereum Classic apareceu primeiro em Livecoins.

5 days ago

As Ethereum Classic (ETC) Suffered a 51% Attack, Is Bitcoin Also Vulnerable?

The recent 51% hack suffered by Ethereum classic known as the brother of ethereum the second rated Cryptocurrency on the 5th of January has thrown the crypto market into speculation of more 51% attack taking place. The 51% attack on ethereum classic saw a single person able to control about 60% of the mining power which created a longer blockchain which enables them to double spend. This event led to the freezing of its trading of the 18th largest Cryptocurrency on top exchanges such as coinbase. Opinions of Crypto Experts on the Hack The hack has led to worries in the crypto space as some envisage the top value Cryptocurrency Bitcoin to be the next in line to experience a 51% attack. One of the crypto experts that lend their thought on the event is the President of Blockchain at Columbia University, Nir Kabesa state that though it is difficult attacks on the larger Cryptocurrencies are no longer out of reach after the ETC 51% attack. He noted that with the power securing ETC and the market cap of its supply being less than 1/20th of the ethereum main chain; the attack is not surprising. He further stated that it is now clear that it is much cheaper to 51% attack supposed top tier project than many might have assumed. The ETC value which supposed to he absolute immutable has been indicated to be not immutable because of the attack. Also, the co-founder at Qtum and co-chair of the Smart Contracts Alliance Jordan Earls, lend his voice. He stated that this latest attack could see an update on proof of work model. To him, the attack highlights the danger in the use of the PoW consensus in the system and extol the proof of stake implemented in Qtum which maintains the freedom and censorship resistance of proof of work, and it is without the risk of 51% attack. Though many have doubts about PoS, there has been no record of 51% attack. Also, Senior Market Analyst at eToro, Mati Greenspan noted that the most common type of attack in crypto is the 51% attack. This happens when a foul player tries to control more than half of the network mining power, which leads to rewriting history. Mati stated that if anyone is dreaming of 51% attack Bitcoin would be in need of about 4,500 times the amount of hashrate than what is needed to attack ETC. In his opinion anyone thinking that the crypto market is in disarray is wrong. However, the issue of Bitcoin 51% attack is still subjected to time. The post As Ethereum Classic (ETC) Suffered a 51% Attack, Is Bitcoin Also Vulnerable? appeared first on ZyCrypto.

5 days ago

VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos

CoinSpeaker VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos Recently, Bitcoin developers noticed some strange activity on the blockchain. Specifically, a large number of unidentified OP_RETURN transactions were discovered, according to Forbes. OP_RETURN is a type of Bitcoin transaction that is used for embedding data into the blockchain. It can be used for anything from proving the existence of some data at a specific point in time (proof-of-existence) to issuing new assets, such as the controversial US dollar-pegged Tether, on top of the Bitcoin blockchain. This function accepts a user-defined sequence of up to 40 bytes. When a transaction containing a challenge script with an OP_RETURN function is mined into a block, the accompanying byte sequence enters the blockchain. OP_RETURN and its 40-byte limit represent a compromise between two opposing visions of Bitcoin’s future. One camp sees the blockchain as a secure, decentralized data store on which numerous financial and social applications can be built. Promoting the growth of these new applications helps ensure Bitcoin’s long-term relevance. Allowing transactions to carry application-specific data in a standard way advances this goal. The other camp views the Bitcoin blockchain exclusively as a medium for recording electronic cash payments. Even so, important scalability issues will need to be addressed sooner or later. Trying to accomodate the data requirements of arbitrary application layers only raises the cost of maintaining the network today, while pushing forward the eventual day of reckoning. Over the past few days, it became more clear that the entity behind these newly-revealed transactions is VeriBlock, a project that piggybacks on the Bitcoin blockchain in an effort to better secure alternative crypto asset networks. “Proof-Of-Proof” Using Bitcoin’s Hash Power VeriBlock works on a process known of “proof-of-proof” whereby the latter “proof” is arrived at using the hash power of the Bitcoin network. Perhaps the most notable contributor to the VeriBlock project is former Bitcoin Core developer Jeff Garzik who infamously led the development of the abandoned SegWit2x hard fork attempt of Bitcoin in 2017, is part of the VeriBlock team. The new OP_RETURN debates started from Jameson Lopp’s tweet on January 5. According to Lopp, who is CTO of crypto custody provider Casa, VeriBlock was identified as the protocol behind the highest volume of OP_RETURN outputs. Data from opreturn.org showed that in December 2017, VeriBlock posted 784k OP_RETURN transactions and according to Lopp, they are on track to post 1.5 million transactions in January 2018. Source of the now-highest volume of OP_RETURN outputs has been identified as @VeriBlock "proof of proof" miners. They are creating around 20% of all BTC transactions now. Seems inefficient to me; will be interesting to see if the incentives work long term. https://t.co/LpjyhGKg2b — Jameson Lopp (@lopp) January 5, 2019 Although the VeriBlock blockchain is still in a testing phase, the OP_RETURN transactions that it generates already account for roughly 20% of all of the transactions made on the Bitcoin network every day. Even though some may characterize VeriBlock as simple spam, the truth is, that Bitcoin works on a system where anyone who is willing to pay a fee will get their transactions into the blockchain. For now, VeriBlock is making it more expensive to make actual money transfers on the Bitcoin network due to the limited availability of block space. However, there isn’t really anything anyone can do about this as long as people are willing to pay Bitcoin transaction fees in an effort to improve the security of alternative blockchains. The viability of VeriBlock and its effect on Bitcoin will be something worth tracking in 2019. If the company continues to increase the number of transactions it creates using OP_RETURN and filling up Bitcoin’s limited block space, the market will bid up the price of transaction fees to the point where it could become uneconomical for VeriBlock to continue to increase its transactions. The massive proliferation of cash-grab altcoins and the continued profitability of scams in the space has made digital currency difficult to take seriously for anyone outside of the industry. Some think that many of these altcoins, particularly those needing support from VeriBlock, need to die off entirely before this can change. We already wrote of how last week Ethereum Classic (ETC) debacle happened and how the risk of 51% attack on altcoins is far greater than it is on the BTC network. This is because there is much less hashing power securing these smaller networks. With less computing power enforcing them, attackers need to command far less computing power themselves to subvert the network’s rules. VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos

5 days ago

Coroner’s Report on the Ethereum Classic [ETC] 51% attack; tracking the attacker’s transactions on the blockchain

The biggest hit that any cryptocurrency has taken ever since the start of 2019 has to be Ethereum Classic [ETC] as it underwent a brutal 51% attack causing a loss of $1.1 million worth of ETCs. In light of new evidence, there have been some ‘skeletons’ crawling out of the closet. According to independent research conducted by the “SlowMist” team, the attack was noticed by them on January 6, 2019. However, Donald McIntyre, BDM at the Ethereum Classic says that the attack happened in two stages. The first attack took place on January 5 and 6 and the second attack took place on January 6 and 7. As per SlowMist research, the attacker withdrew his ETC from Binance exchange to multiple addresses which began on January 5, 2019, 19:58 UTC. [Binance Address: 0x3f5CE5FBFe3E9af3971dD833D26bA9b5C936f0bE]. The attacker then transferred it to two addresses, the first one was “0x24fdd25367e4a7ae25eef779652d5f1b336e31da” and the second one was 0x3ccc8f7415e09bead930dc2b23617bd39ced2c06. The next address that the attacker used was a wallet on Bitrue’s exchange. [Bitrue Address: 0x2c9a81a120d11a4c2db041d4ec377a4c6c401e69]. SlowMist in their research mentions how the attacker successfully double spent 9000 + 4000 ETCs and then tried to withdraw it which was noticed by Bitrue. The attack was confirmed by Bitrue exchange on a Twitter thread which details how they noticed 13,000 double spent ETC on their platform. Bitrue confirmed that they stopped the attacker from withdrawing his funds. Source: Twitter | @BitrueOfficial Bitrue also detected the attacker aka the ‘bad actor’ miner using gastracker.io and found out his address. As seen from the chart below it shows how the miner gathered an absurd amount of hash rate to himself/themselves. Source: gastracker.io As per the data obtained from gastracker.io, the attacker had a hash rate equivalent to 6524 GH/s [Gigahash per second], which is about 78.15% of the total hash rate available for the entire Ethereum Classic network which runs on the same hashing algorithm as that of Ethereum. Furthermore, the attacker tried to double spend 600 ETC in the transaction which was recorded in block height - 7249357 as well as in block height - 7249361. Coinbase blog dated January 8, 2019, by Mark Nesbit, confirmed the attacks and the double spending by the attacker. The SlowMist blog stated: “Based on continuous tracking, we found that, in view of the increase in block confirmations and the ban on malicious wallet addresses by exchanges, the attacker’s 51% attack on ETC is in UTC 2019-01-08 04:30:17 (Beijing time 2019-01- 08 12:30:17 ) has stopped after that” The number i.e., 219,500 ETC remains the same, which is the total amount of ETC double spent by the attacker during the attack that lasted from January 5, 2019, to January 7, 2019. There was, however, a meeting led by Zach Belford, an ETC lead developer which included members from the IOHK and ETC Labs Core teams, other volunteers ETC developers, the ETC Cooperative, other members of the community at large. The meeting discussed a wide range of topics, which focussed on how the attack happened and solutions that could be introduced into the ETC blockchain or the mining to mitigate or stop such attacks. One solution included increasing the confirmation time for transactions, while the others included an introduction of new PoW mining algorithm niche which is exclusive to the ETC blockchain. The post Coroner’s Report on the Ethereum Classic [ETC] 51% attack; tracking the attacker’s transactions on the blockchain appeared first on AMBCrypto.

5 days ago

RT @ETCCooperative: Yaz teaches us how to run ETC on Raspber...

RT @ETCCooperative: Yaz teaches us how to run ETC on Raspberry Pis and other low powered devices. https://t.co/Bl0HNMvWTT

5 days ago

A community organized call was conducted to go over the main...

A community organized call was conducted to go over the main points regarding the recent attacks on ETC, analyze th… https://t.co/bcFXti1AOk

5 days ago

Investigation of Ethereum Classic 51% Attack Finds that the Attack Begins With Coins From Binance

A blockchain security research firm called Slowmist has released a full report on the attack that recently took place against Ethereum Classic, indicating that several exchanges are the victims of a concerted 51% attack. The attacker dupes several exchanges in the process including Coinbase, Bitrue, and Gate.io, but the earliest movement started from a little over 5,000 ETC being transferred from a Binance address. As declining markets lead to reduced hashpower, exchanges reportedly must adapt their security policies to chains with smaller hashrates. (RL)

5 days ago

About the recent 51% attack on $ETC, #Bibox has suspended th...

About the recent 51% attack on $ETC, #Bibox has suspended the ETC deposit function and we are in a continuous obser… https://t.co/8ba6lUoI0t

5 days ago

Hashpower Analysis of ETC Attack by @SlowMist_Team ...

Hashpower Analysis of ETC Attack by @SlowMist_Team https://t.co/vVf4iTQLEP

5 days ago

Are VeriBlock Transactions on the Bitcoin Network Helping or Harming BTC?

According to reports from Bitcoin (BTC) developers, a startling amount of block space is being wasted on the Bitcoin network to secure the blockchains of other cryptos. A company called VeriBlock has been “borrowing” the hashing power of the Bitcoin network to increase security on vulnerable altcoin chains and filling up BTC block space in the process. VeriBlock works on a process known of “proof-of-proof” whereby the latter “proof” is arrived at using the hash power of the Bitcoin network. According to Forbes, perhaps the most notable contributor to the VeriBlock project is former Bitcoin Core developer Jeff Garzik. Only a Matter of Time Before VeriBlock’s Impact on Bitcoin Fees is No Longer Trivial As was highlighted just this week by the Ethereum Classic (ETC) debacle, the risk of 51% attack on altcoins is far greater than it is on the BTC network. This is because there is much less hashing power securing these smaller networks. With less computing power enforcing them, attackers need to command far less computing power themselves to subvert the network’s rules. A 51% attack allows those behind it to wreak havoc with a cryptocurrency and enrich themselves. This can involve double spending units of the currency - essentially creating money for nothing for the attacker. To help altcoins with their failing security requirements, a startup called VeriBlock has devised a way to use Bitcoin’s immense hash power to help secure the blockchains of smaller projects. This involves the use of OP_Return transactions added to the Bitcoin blockchain. VeriBlock is not even fully live on the main net yet but already it is already having an impact on the Bitcoin network. Chief Technology Officer of CasaHODL and long-time Bitcoin developer Jameson Lopp highlighted a few days ago that the startup was currently responsible for 20% of all transactions on the network: Source of the now-highest volume of OP_RETURN outputs has been identified as @VeriBlock "proof of proof" miners. They are creating around 20% of all BTC transactions now. Seems inefficient to me; will be interesting to see if the incentives work long term. https://t.co/LpjyhGKg2b — Jameson Lopp (@lopp) January 5, 2019 Whilst there is nothing anyone can do to stop VeriBlock from using the Bitcoin blockchain in such a way, its doing so certainly reduces the utility of the network. With 20% of every block being filled with transactions that support networks that divert both economic and literal human interest away from Bitcoin, VeriBlock could be incredibly detrimental for the success of an entire space, largely tied to the current number one digital asset. VeriBlock will already be having an undesirable impact on the price of transactions on the network. If a large surge in utility occurs on the network again, there may be another “race to the top” situation within transaction fee markets. Last time this occurred, $40 being spent in Bitcoin fees was not uncommon. Such a fee is difficult to swallow when it is caused directly by economic activity benefiting Bitcoin. When it is caused by a group of altcoins supporting essentially zero economic activity and supposedly in direct competition with Bitcoin, most users would find it grossly unacceptable. Poaching BTC’s hash rate in the way that VeriBlock is doing and filling blocks with data that benefits dying blockchains only serves to delay the inevitable, whilst limiting Bitcoin’s chances of success. The massive proliferation of cash-grab altcoins and the continued profitability of scams in the space has made digital currency difficult to take seriously for anyone outside of the industry. Many of these altcoins, particularly those needing support from VeriBlock, need to die off entirely before this can change. It is hard, after all, to imagine a less noble existence than failing to survive off hash power from miners incentivised to secure the network through mining rewards and instead continuing to exist at the expense of potential Bitcoin adoption whilst continuing to give “get-rich-quick”-type investors hope of an impending moon shoot. Related Reading: Coinbase Forced to Suspend Ethereum Classic Trading After 51% Attack Featured Image from Shutterstock. The post Are VeriBlock Transactions on the Bitcoin Network Helping or Harming BTC? appeared first on NewsBTC.

5 days ago

About the recent 51% attack on $ETH, we've suspended the ETC...

About the recent 51% attack on $ETH, we've suspended the ETC deposit function and in a continuous observation of ET… https://t.co/hEwppKh1yY

5 days ago

7. TL:DR? The crypto crowd spent yesterday chatting about t...

7. TL:DR? The crypto crowd spent yesterday chatting about the ETC hack, lamenting Bitfinex maintenance, discussing… https://t.co/6vTgT3zCDm

5 days ago

Crypto Market Update Jan.9: Bitcoin Consolidates Around $4000, Altcoins in Green

So far, 2019 had been positive for the Crypto market as the bears have taken a break, and since the beginning of the year, Bitcoin has tried to stabilize around the $4,000 level. Most of the Altcoins had a green week when Ethereum returned to its usual second place in the top market cap list. However, the competition with Ripple is still very tight. Tron had a great week, gaining around 40%. As long as Bitcoin remains stable, investors seem to feel comfortable investing in Altcoins, following the 80-95% drops in value seen in 2018. Interesting examples are Ripple, which has risen more than 100% from its floor of around 4,000 sushi, and Ethereum, which is currently trading around 0.037 BTC after reaching an annual low at around the 0.024 level. As mentioned previously, 2019 is smiling on crypto. However, the gains are not enough to attract new players and investors. The market is still under correction for the 2018 bear market, and it’s too early to declare a reversal. Total Market Cap $137 Billion | Dominance 51.5% in favor of Bitcoin. Crypto News You Can Now Use Crypto to Purchase Nasdaq Tokenized Stocks. Good news for crypto investors as they can now buy tech-heavy Nasdaq digital stocks and other top US stocks, courtesy of DX.Exchange, a newly launched regulated crypto exchange. Binance Launchpad is Back: A New Era For ICOs? A new era is set to begin for blockchain projects after the world’s largest crypto exchange, Binance, reportedly announced that it is introducing a Binance Launchpad platform to help raise funds for new projects every month. Overstock to Become the First Major US Corporation to Pay Taxes with Bitcoin. Barely two months after US state Ohio enabled Bitcoin taxes, Overstock, a popular online retailer, says it will be the first major corporation in the state to pay part of its taxes with BTC next month. The USA is (Currently) Not The Perfect Location For Crypto Businesses: Kraken Sees 300% Increase in the Law Enforcement Requests Received in 2018. Cryptocurrency exchange Kraken has revealed that the United State is not favorable for crypto-related companies after receiving more than 470 requests from different US law enforcement agencies in 2018. The 51% Attack on Ethereum Classic (ETC): Coinbase States $450k in Double Spending while ETC Denies. US-based crypto exchange Coinbase has stated that it detected $450,000 of double spending after investigations into the 51% attack on the Ethereum Classic blockchain, which led to the hijacking of about $1.1 million worth of ETC. ASIC Cracks Down on Australian BitConnect Promoter Whose Wife Went Missing. The Australian financial watchdog has busted one of the biggest promoters of a popular Bitcoin Ponzi scheme BitConnect, freezing his assets and making sure he does not leave the country For more news, visit our Crypto News section. Charts This week we have chart analysis of Bitcoin, Ethereum, Bitcoin Cash and Monero - Read more here. The post Crypto Market Update Jan.9: Bitcoin Consolidates Around $4000, Altcoins in Green appeared first on CryptoPotato.

6 days ago

Security Firm SlowMist Asks Crypto Exchanges to Help it Find the Ethereum Classic Attacker

In a Medium post published on January 9, China-based security firm SlowMist, said that they had acquired sufficient evidence to locate the culprit responsible for the current 51% attack on Ethereum Classic. The firm identified three wallet addresses and four transaction hashes that are behind the two-day block reorganizations attacks on the ETC network and the company’s data corroborates with information made public by Coinbase. SlowMist said that it is still attempting to pinpoint the exact location of the addresses and the firm indicated that this can be done “if the relevant exchanges are willing to assist.” Gate.io, Bitrue, and Binance would need to collaborate with SlowMist in order to identify those behind the attack. The Ethereum Classic team is working with SlowMist to identify the source of the attacks and the group will meet during a private Discord call at 5 p.m. UTC today. The ETC team has also said that it “will not reorg the chain or revert the events on chain under any circumstance.” (RS)

6 days ago

Ripple CTO David Schwartz defends XRP after Kraken statements

The cryptocurrency market has been abuzz with multiple news updates which have come as a result of the deep chain reorganization on the Ethereum Classic [ETC] network. The shakeup also resulted in multiple exchanges like Bitfly and Kraken to closely monitor ETC transactions. Post Kraken’s announcement, the cryptocurrency exchange had gotten into a tussle with another Twitter user who asked Kraken for the reason as to why the exchange continued to list ETC. Kraken replied: “Ripple is only one example of a blockchain which has had problems. Bitcoin, Ethereum, ZCash, you name it, have all had their share of problems. This what markets are for. People disagree and can invest accordingly. Deplatforming is not the answer.” The comment was called out by XRP’s parent company Ripple, whose Chief Technological Officer David Schwartz rebutted: “It’s irresponsible when exchanges misrepresent digital assets in this way - @Ripple is a private company, different from XRP or the XRP Ledger. They’re not interchangeable, and there’s no disputing it.” Schwartz focused his reply on the fact that Ripple is just the parent company under which xRapid, xVia and xCurrent functions along with XRP. Many XRP enthusiasts followed Schwartz’s path, stating the faults with the cryptocurrency exchange as well as Kraken’s official handle. Dr. T, a popular XRP advocate backed Schwartz by saying: “Thank you for calling for public accountability. That twitter acc. has been acting unprofessionally for a long time. It’s now clear Jesse was controlling the handle. I just don’t understand how the industry as a whole could mature if a person (@EDadoun) simply asked for reasons?” The XRP proponent further stated: “The longer we have Proof of Work coins listed at exchanges, it’s inevitable that one of these days a 51% attack will leave an exchange insolvent and then every other digital asset will be affected due to that, and market may crash. Coinbase was told that reality SIX MONTHS ago!” The deep chain reorganization on the Ethereum Classic blockchain had resulted in funds worth $460,000 being manipulated on the network. This was first pointed out by Coinbase who had revealed: “We observed repeated deep reorganizations of the Ethereum Classic blockchain, most of which contained double spends. The total value of the double spends that we have observed thus far is 88,500 ETC (~$460,000).” The post Ripple CTO David Schwartz defends XRP after Kraken statements appeared first on AMBCrypto.

6 days ago

Asia Crypto News Roundup from Jan 5th-8th

What Crypto insiders are reading on Asia. Yesterday, we released our 2019 In-House Predictions on Crypto in China, US and the rest of Asia, sharing our thoughts from a global lens on what’s going to happen to the crypto around the world. We highlight the realities of a China digital currency, outlook on the largest exchanges and US projects, the important cities you shouldn’t miss in 2019, and more. Be sure to check it out and share with your friends.Share with Friends Top News in Asia from this Week Do you recall repeatedly seeing articles about China’s crypto rankings? Well, apparently, it doesn’t appear to be coming from the regulators themselves, but a private consulting entity under China’s MIIT. According to a Vechain101 article, the author directly contacted the CCID and learned that China’s CCID Ranking Report is actually a private, and biased ranking that we should not rely on. After ETC 51% attack, Ethereum Miner Linzhi Calls Out Project Coders for Proposed ASIC Ban:http://bit.ly/2Rf2he1 Japan’s financial regulator is considering allowing Bitcoin ETFs, an anonymous source told Bloomberg: http://bit.ly/2Fhy5rA State of Blockchain in South Korea — a comprehensive report by OneAlpha.http://bit.ly/2RgN50b Beijing-based bitcoin mining giant Bitmain was reportedly monitoring its employees at work via a self-developed app before its much-publicized layoff: http://bit.ly/2FjeMOw The team at RelayNode has started a new newsletteron the latest crypto event happenings in Hong Kong and Singapore under Jason Choi. Be sure to check it out before you make your travel plans to Asia. Most Clicked on From Last Newsletter EOS is a DAO. http://bit.ly/2C0OGMZ Alibaba predicts 10 tech trends for 2019 including faster deployment of blockchain applications and specialized AI chips: http://bit.ly/2C513ro Funding news Lightspeed China partners raises $560m to invest in China tech companies; http://bit.ly/2C2T3r5 Exchange News Binance adds stablecoin pairs- PAX/TUSD, USDC/TUSD and USDC/PAX Trading Pairs.http://bit.ly/2RgOhAH Regulation News Five cryptocurrency exchanges join the Japan Virtual Currency Exchange Association to protect investors in the industry: http://bit.ly/2FiOAUs Business News Blockchain Water Purifier? New China Mobile Appliance Earns You Tokens.http://bit.ly/2RcFlMy China’s analysts say cryptos may not make a big comeback in 2019: http://bit.ly/2Fm2JQu Hong Kong investors claim they lost HK$3 million in venture of cryptocurrency promoter thought to be behind ‘money falling from sky’ stunt’: http://bit.ly/2FizCO3 Four cryptocurrency hotspots that saw tremendous growth in 2018- Malta, Japan, Korea andHong Kong: http://bit.ly/2FiPuA Police in Harbin, capital of northeast China’s Heilongjiang Province, has arrested five men suspected of stealing electricity worth over about $0.15 million to mine cryptocurrencies:http://bit.ly/2FfU2Ye China and Others China Internet watchdog launches crackdown on harmful information. http://bit.ly/2Re1zhg How Is the definition of money changing in Asia?: http://bit.ly/2FiEtPo January/February 2019 — MIT Technology Review — The China Issue From Peppa Pig to giant babies, these memes took over China’s internet in 2018.http://bit.ly/2RflCMd DON’T MISS IT If you happen to be at Binance blockchain week, use the code “MissBitcoin” 4 discounted tickets, courtesy of Miss Bitcoin Mai. You will have $49 off when they register atwww.binancefair.com/registration Our Podcast is Out! with Alex Shin, Co-Founderand Partner at Hashed Hashed is a Korean blockchain project accelerator and also the largest pure play crypto investment fund in Korea. Alex Shin is a cofounder and partner of the fund. Founded in 2017, Hashed has shaped the Korean blockchain industry through its unique approach to finding and nurturing nascent projects. It has helped accelerated projects such as Terra and ICON. When I spoke to Alex, I found him to be extremely skillful at bridge building between east and west, and he along with his partners are committed to put Korea on the global crypto map. In this upcoming podcast episode, we discuss Hashed and its investments, Alex’s view on crypto markets now, and Korea’s crypto regulator and the conglomerate participants there.

6 days ago

Litecoin (LTC) Creator, Charlie Lee: If A Crypto Cannot be 51% Attacked, it is Not Decentralized

Right after news broke that the Ethereum Classic (ETC) cryptocurrency had been the victim of a 51% attack, one twitter user by the name of Crypto Tesla noted that a cryptocurrency has to be open for such attacks if it were to remain decentralized. His tweet was in response to one by Coinbase announcing that they had detected a deep chain reorganization of the ETC blockchain that included a double spend. A screenshot of the tweet can be found below. Charlie Lee Elaborates on Why A Decentralized Cryptocurrency has to Be Susceptible to 51% Attacks It is from this tweet, that Charlie Lee elaborated on what Crypto Tesla had first observed. Charlie Lee’s exact words and tweet can be found below. This is a thought-provoking observation. By definition, a decentralized cryptocurrency must be susceptible to 51% attacks whether by hashrate, stake, and/or other permissionlessly-acquirable resources. If a crypto can’t be 51% attacked, it is permissioned and centralized. This is a thought-provoking observation. By definition, a decentralized cryptocurrency must be susceptible to 51% attacks whether by hashrate, stake, and/or other permissionlessly-acquirable resources. If a crypto can't be 51% attacked, it is permissioned and centralized. https://t.co/LRCVj5F0O1 — Charlie Lee [LTC] (@SatoshiLite) January 8, 2019 What Exactly is a 51% Attack? A 51% attack on a Proof-of-Work powered blockchain involves a group of miners controlling more than 50% of a its’s mining hashrate. With this advantage, they can send funds to one address on the main chain of the network while sending similar funds to another address on a forked copy of the blockchain that they are also silently mining. Other nodes only recognizing the main chain will see the first transactions as valid. The malicious miners can then release the silently mined blocks on the second chain and other nodes will accept this as the new correct chain since it is longer. The original transaction will disappear and nodes will now recognize the funds from the new chain thus creating a double spend situation. How Much Would It Cost to Carry out Such Attacks? According to Cyrpto51.app, even Bitcoin can be attacked with the right amount of capital to fund the operation. For a one hour attack, malicious miners can carry out attacks on major networks using the following amount of funds: Bitcoin (BTC) - $332,998 Ethereum (ETH) - $97,734 Bitcoin Cash (BCH) - $10,716 Litecoin (LTC) - $23,222 Ethereum Classic (ETC) - $5,000 With the recent ETC 51% attack estimated to having double spent $450,000, we can now see why someone would be motivated to organize such an event. Using the $5,000 cost quoted by Crypto51.App, the rogue miners made a profit of 8,900% on the ETC attack. What are your thoughts on Litecoin’s Charlie Lee stating that a decentralized cryptocurrency must be susceptible to 51% attacks otherwise it is permissioned and centralized? Do you agree with his observations? Please let us know in the comment section below. Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you. The post Litecoin (LTC) Creator, Charlie Lee: If A Crypto Cannot be 51% Attacked, it is Not Decentralized appeared first on Ethereum World News.

6 days ago

Daily Berminal Brief: Brave Browser Surpasses 5.5 Million Users And ShapeShift Announces Lay Offs

The State of The Market - January 9, 2019 BTC: $4,049.81 (-0.32%) ETH: $151.93 (-0.29%) XRP: $0.369404 (+1.25%) Another stable day for the crypto market, as most major cryptocurrencies changed by less than 1% in the last 24 hours. The market volatility is lower than yesterday, as the total market cap went down by just $200 Million in the last 24 hours. Bitcoin is rangebound between $4,000 and $4,100. Every time it goes below $4,000, there is a strong rebound. We can get a clear picture only if the price moves significantly beyond these points. The price of Ethereum Classic (ETC) remains unchanged even after the 51% attack, while Tron (TRX) is up by 7%. In other news, Canaan Inc. is considering a US IPO. Canaan is China's second-largest Bitcoin miner manufacturer after Bitmain. Canaan is looking to raise $1 Billion in the New York Stock exchange, and it could happen in the first half of 2019. Also, Telenor Microfinance Bank recently unveiled Pakistan's first blockchain-based cross-border remittance service, launched in partnership with Valyou of Malaysia. The service is provided by Telenor's Easypaisa and Valyou, a financial technology company that provides remittance services to unbanked populations, and powered by blockchain technology developed by Ant Financial's Alipay online payment platform. The service will help to increase the speed and efficiency of remittances from Malaysia to Pakistan. 1) This week Brave Software announced that their browser had notched more than 5.5 million monthly active users. Brave started 2018 with about 1 million active users and grew this base by more than 450% by the end of the year. The number of verified published using the platform also grew from 4,000 to 28,000 and YouTube channels and Twitch streamers are among the news outlets represented on the platform. 2019 looks to be a fruitful year for Brave as the company secured partnerships with the Dow Jones Media Group, DuckDuckGo, and HTC. Brave Browser will also be the default browser on the new HTC Exodus phone. In spite of this impressive growth, Basic Attention Token is down more than 82% since reaching an all-time high in 2017. 2) On Tuesday ShapeShift crypto exchange CEO Erik Voorhees announced that the startup had sacked 37 employees, which is nearly a third of its staff. Voorhees said that having to lay off employees was a "deep and painful reduction, mirrored across many crypto companies in this latest bear market cycle." Voorhees was very transparent about the process and explained that growing industry-related legal concerns and unsustainable growth in staff hurt the company. Voorhees also mentioned that ShapeShift's decision to implement know-your-customer (KYC) procedures led to a significant drop in users and the overall market-wide drop in transaction volume meant staffing changes were necessary. 3) KodakONE, a blockchain-based image rights platform that is licensed by Kodak, has generated more than $1 million in licensing claims for content protection during a trial beta test of the platform. The platform essentially functions as an image copyright protection, monetization and distribution platform built on Ethereum, Stellar and Hyperledger blockchain technology. In October, KodakOne debuted its beta Post-Licensing Portal (PLP) and the platform uses an intelligent web crawler and image recognition technology to permit image rights holders to track their images and view infringements. The platform also uses artificial intelligence (AI) technology to estimate licensing value based on similarly registered images and the platform allows a user to retroactively license image usage in order to turn copyright infringers into paying customers. KodakONE co-founder Cam Chell said that in the future the platform will use KodakCoin to provide instant license settlement and the deployment of smart contracts. (VS)

6 days ago

Kraken Defends Ethereum Classic Listing Even After 51% Attack

Ethereum Classic suffered a 51% attack, which could've resulted in $1.1 million lost due to double spending. Coinbase has completely suspended Ethereum Classic. Kraken, on the other hand, has only suspended deposits and withdrawals, while traders can continue to trade on the existing Ethereum Classic trading pairs. When asked about their decision, the exchange tweeted that no one benefits from its delisting. The exchange also added that the market does not agree with the delisting sentiment, and is down less from its all-time high than many other coins. However, more exchanges are expected to delist Ethereum Classic in the coming weeks. Ethereum Classic (ETC) is priced at $5.08, gaining 0.89% in the last 24 hours. (VS)

6 days ago

Cocos-BCX Testnet Launched! The next generation of digital game economy empowering over 1.3 million developers

With over 1.3 million developers, Cocos is the widely adopted game engine in Asia and is second around the world by market share. Many captivating games including Angry Birds, Badlands, Fight! and Clash of Kings were built using the Cocos development platform and several well-known game publishers including Zynga & Big Fish Games rely on Cocos2d-x on a daily basis. Many people in the blockchain and gaming space believe that games will be the first and foremost user-facing application built on a blockchain. Cocos-BCX [Cocos Blockchain Expedition] has entered the space with the goal to create an open system where game developers can have access to a new game engine and development environment supporting multiple blockchain systems. Cocos-BCX consists three core components: Cocos-BCX blockchain game engine : a software framework and virtual machine [run-time operating environment] that supports multiple blockchains, device types and operating systems An integrated development environment [IDE] An underlying public blockchain :  CocosChain, based on the Graphene framework and re-designed specifically for games & other high-performance applications Cocos-BCX first line of code was dropped in the month of November 2017 and the first demo of the platform was released in March 2018. On Dec 21, 2018, Cocos-BCX TestNet was officially launched, with three third-party games developed based on Cocos-BCX and a props exchange platform going live at the same time. The three games and exchange platform can be visited through Cocos-BCX official website “community” sub-page [English version to be released later]. With its vision to build a blockchain gaming ecosystem, Cocos-BCX has established strategic cooperation with partners including Ontology, Zilliqa, Tron, NEO on the integration via SDK, exchange gateway as well as NHAS-1808 standard [non-homogenous asset standard] powered by Cocos-BCX. Besides, Cocos-BCX has been working already with other blockchain projects such as Loom, Nebulas, Cell Evolution etc, and is open for collaboration with more potential partners in blockchain and gaming space. For more detail & updates of Cocos-BCX you can follow below official channels: Official website Blog Telegram Twitter Reddit Discourse Forums The post Cocos-BCX Testnet Launched! The next generation of digital game economy empowering over 1.3 million developers appeared first on AMBCrypto.

6 days ago

Cocos-BCX Testnet Launched! The next generation of digital game economy empowering over 1.1 million developers

With over 1.1 million developers, Cocos is the widely adopted game engine in Asia and is second around the world by market share. Many captivating games including Angry Birds, Badlands, Fight! and Clash of Kings were built using the Cocos development platform and several well-known game publishers including Zynga & Big Fish Games rely on Cocos2d-x on a daily basis. Many people in the blockchain and gaming space believe that games will be the first and foremost user-facing application built on a blockchain. Cocos-BCX [Cocos Blockchain Expedition] has entered the space with the goal to create an open system where game developers can have access to a new game engine and development environment supporting multiple blockchain systems. Cocos-BCX consists three core components: Cocos-BCX blockchain game engine : a software framework and virtual machine [run-time operating environment] that supports multiple blockchains, device types and operating systems An integrated development environment [IDE] An underlying public blockchain :  CocosChain, based on the Graphene framework and re-designed specifically for games & other high-performance applications Cocos-BCX first line of code was dropped in the month of November 2017 and the first demo of the platform was released in March 2018. On Dec 21, 2018, Cocos-BCX TestNet was officially launched, with three third-party games developed based on Cocos-BCX and a props exchange platform going live at the same time. The three games and exchange platform can be visited through Cocos-BCX official website “community” sub-page [English version to be released later]. With its vision to build a blockchain gaming ecosystem, Cocos-BCX has established strategic cooperation with partners including Ontology, Zilliqa, Tron, NEO on the integration via SDK, exchange gateway as well as NHAS-1808 standard [non-homogenous asset standard] powered by Cocos-BCX. Besides, Cocos-BCX has been working already with other blockchain projects such as Loom, Nebulas, Cell Evolution etc, and is open for collaboration with more potential partners in blockchain and gaming space. For more detail & updates of Cocos-BCX you can follow below official channels: Official website Blog Telegram Twitter Reddit Discourse Forums The post Cocos-BCX Testnet Launched! The next generation of digital game economy empowering over 1.1 million developers appeared first on AMBCrypto.

6 days ago

State of Emergency

The year has started with a bang! Stocks and cryptos are rallying strongly so far yet volatility is still really high. This afternoon, we’ll have a special webcast at 3:00 PM GMT to discuss some of the main themes going into 2019 and how to position your portfolio. This session is open to everyone and we’ll be honored if you can join us. Feel free to register now at this link. @MatiGreenspan eToro, Senior Market Analyst Today’s Highlights Shutdown: Day 18 Volatility Still Elevated Ethereum Classic Hacked!! Please note: All data, figures & graphs are valid as of January 8th. All trading carries risk. Only risk capital you can afford to lose. Traditional Markets Stocks have managed to rally off the lows and are now firmly in green for the year. Here we can see the Dow Jones’ all-time high in early October and the recent low from December. There does seem to be some progress being made in the US trade war with China. The Fed also seems to be signaling that they’re less likely to be hiking rates this year. In contrast, the US government shutdown only seems to be heating up. Today marks the 18th day of the partial shutdown and according to rhetoric from the White House, it seems that the President is willing to let it last an entire year if necessary. President Trump has announced that he will address the nation tonight at 9:00 PM EST. Many expect him to declare a state of emergency in order to circumvent Congress in getting funding for the border wall. Market volatility has come down a bit from the extreme highs of December but is still quite elevated. Ethereum Fork! So, there’s been a lot of confusion here and I’m very glad to cut right through this one for you and clarify. First, some background... We’ve discussed already that the Ethereum blockchain is about to see a major upgrade. The name of this upgrade is Constantinople and it is scheduled for on or around January 16th. Constantinople will be implemented as a hard fork on Ethereum. If you’re not 100% sure how forks work, please review this short explanation now. In this upcoming case, the Ethereum upgrade has been widely embraced by the community and until now there have been no major players protesting Constantinople. So most likely it will be a smooth upgrade. This means that the entire network will probably implement the upgrade together and there will be no action required from the end users. It’s important that we emphasize this because there are several projects out there piggybacking on the upgrade and taking advantage of people. One of which, called Ethereum Nowa appears to be an outright scam. Ethereum Classic Hacked!!! Not to be confused with Ethereum, Ethereum Classic is a legitimate fork of Ethereum. A disagreement among the community back in 2016 led to a chain split. Since then Ethereum Classic (ETC) has not done too well, especially when compared to her sister Ethereum (ETH). Last night Coinbase put out the following alert on Ethereum Classic. TL;DR: Etherum classic has been hacked!! Explanation: The most common type of attack in crypto is known as a 51% attack. Basically, if a foul player manages to control more than half of the network’s mining power (hashrate), they can basically rewrite history. Lingo: Rewriting history is also known as a reorganization or “reorg” and the most common reason to do this would be to create a double spend. Or, erase a previous transaction so you can get your coins back and spend them again. Coinbase’s blog identified no less than 15 reorgs, several of which contained suspicion of double spend activity amounting to an approximated $1.1 million, which has been siphoned from the network. Again, it’s important to understand that ETC is not the same as ETH. In the initial moments after the blog was released, both coins sold off in the confusion but ETH did manage to regain composure fairly quickly. The reason is that Ethereum has a hashrate of about 20 times that of Ethereum Classic. So while it might be possible to temporarily get enough hashrate to control 51% of ETC’s network, it would be practically implausible to affect ETH in this way. Putting things into perspective, if someone is dreaming about trying to 51% attack Bitcoin, they would need about 4,500 times the amount of hash than they do to attack ETC. So, anyone claiming crypto is in a state of emergency is dead wrong on this one. Simply put, this is yet another great example of how negative news is nothing more than a learning opportunity. All the newcomers that joined crypto in 2017 should be much more comfortable now with how blockchain and crypto works and that is ultimately a good thing. Have an amazing day ahead. Hope to see you at the webcast. This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation. Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose. The outlook presented is a

6 days ago

Coinbase Suspends Ethereum Classic Following 51 Percent Attack

Coinbase has ceased interactions with the Ethereum Classic (ETC) blockchain after the exchange detected a 51 percent attack on the network. Following the discovery of a “deep chain reorganization” of the ETC blockchain, Coinbase suspended Ethereum Classic withdrawals and deposits. Also Read: Major Mining Pools Have a ‘High Die-Off Rate’ Study Reveals Coinbase Stops Interacting With ETC Blockchain After Deep Chain Reorganization Coinbase has published a blog post titled “Ethereum Classic ETC is Currently Being 51% Attacked” detailing a malicious attack on the ETC network. The post states that on Jan. 5, 2019, Coinbase detected “a deep chain reorganization of the Ethereum Classic blockchain that included a double spend.” In order to safeguard customer funds, the exchange “immediately paused interactions with the ETC blockchain.” The exchange was alerted to the attack by its automated systems, after which the company’s on-call engineers responded and worked to confirm the report. Coinbase chose not to publicly post analysis pertaining to the attack earlier in order to avoid creating a “false alarm” that could have created premature or unnecessary market instability. The company also notes that traders who attempted to send or receive ETC using Coinbase’s platforms were unable to complete said transactions as a result of the response. Coinbase Yet to Re-Enable ETC Transactions Since the incident, Coinbase claims to have detected “12 additional reorganizations that included double spends,” totaling 219,500 ETC valued at approximately $1.1 million. The exchange notes that “a full blockchain analysis is beyond the scope” of its blog post, adding that further examination into “the addresses sending the double spend transactions, the history of sends/receives from the addresses, the block fields such as timestamp, and the subsequent movement of miner rewards from attack blocks may shed light on the threat actor or actors behind these attacks.” Coinbase is currently assessing the “safety” of re-enabling ETC transactions and will communicate with customers regarding updates to the exchange’s support for Ethereum Classic. The post asserts that “Coinbase was not the target of this double spend and no funds were lost.” What is your response to the recently increased prevalence of 51 percent attacks targeting altcoins? Post your thoughts in the comments section below! Images courtesy of Shutterstock At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post Coinbase Suspends Ethereum Classic Following 51 Percent Attack appeared first on Bitcoin News.

6 days ago

Gate.io Reports a Loss of $200,000 as Ethereum Classic 51% Attack Continues

Gate.io crypto exchange has announced that it will absorb the loss of 40,000 Ethereum Classic tokens ($200,000) as the 51% attack against the altcoin continues. The exchange made the announcement confirming the 51% attack through a blog post and the exchange has also managed to identify three of the addresses that are allegedly connected to the attacker. The blog post mentioned that “Gate.io’s censor successfully blocked [the] attacker’s transactions at the beginning and submitted them to the manual exam.” In spite of this, the transactions appeared valid and were confirmed on the blockchain which eventually led to 40,000 ETC being lost. Ethereum Classic developer Cody Burns said that the team is carefully observing the event and explained that “We have been discussing options [to] mitigate the current threat, but no one wants to make a hasty decision that would expose greater security threats.” (RS)

7 days ago

Coinbase Reports Ethereum Classic [ETC] 51% Attack, Wider Market Remains Unfazed

Coinbase, one of the largest cryptocurrency exchanges in the US, announced on Monday that it had paused all interactions with the Ethereum Classic blockchain after detecting double spends in the network. The problems began on January 5 when Coinbase detected a deep chain reorganization in the network. The exchange noted that it stopped the transactions to protect consumer funds. Users cannot receive or send ETC to their accounts until the problem is solved. However, buying and selling ETC on Coinbase is not impacted. 51% attacks usually generate a lot of fear and negativity and many would expect this to result in lower prices in the crypto market. However, now more than 24 hours since the announcement, the majority of the cryptocurrency market is trading up, with some cryptocurrencies like Tron even posting double-digit percent gains. Does the fact that the crypto market is shrugging off this negative news indicate that we are entering into a new bullish phase for crypto prices? Deep Chain Reorganizations Detected After the initial event that was detected by Coinbase, the exchange has gone on to detect 12 other reorganizations on the network. The 12 reorganizations include double spends totaling 219,500 ETC (worth approx. $1,100,000). The exchange said that it would continue monitoring the situation and updating the customers. Until such time, buying and selling ETC on the platform is allowed but sending and receiving transactions have been paused. Coinbase said: “The Coinbase team is currently evaluating the safety of re-enabling sends and receives of Ethereum Classic and will communicate to our customers what to expect regarding support for ETC.” It further added that it takes security very seriously. What Is the Problem? According to Satoshi Nakamoto’s whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System,” it states that it is a core requirement that more than 50% of nodes are ‘honest’ to make Bitcoin secure. In this proof-of-work framework, if one miner is able to gain access to more resources than the rest of the network, hence the name 51% attack, it is theoretically possible that he could manipulate blocks and “extend an alternative block history, eventually outpacing the block history produced by the rest of the network and defining a new canonical transaction history.” This process is known as chain reorganizations and the deeper the “reorg,” the higher the number of blocks are manipulated in the network. All transactions still exist on the network, but their order can change, or some could be delayed. An attacker could send a significant number of coins to a merchant while creating an alternative block history where the same coins are sent to a different address. This means that both transactions exist, but the original one is invalidated, and the merchant never receives the coins, despite paying his part of the transaction. Coinbase Reports Ethereum Classic [ETC] 51% Attack, Wider Market Remains Unfazed was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.

7 days ago

Ethereum Classic Price Hardly Moves After 51% Attack

After suffering a surprising 51% attack, one would expect a cryptocurrency's price to plummet but Ethereum Classic’s (ETC) price hardly wavered after yesterday’s attack. This could possibly be the result of the Ethereum Classic team requesting that all exchanges alter confirmations to 400 for all deposits and withdrawals. This measure, combined with a halt of trading, deposits, and withdrawals, is designed to minimize the impact of the fraudulent attack. ETC price dropped about 10% on Monday but at the time of writing the coin has recovered and is down 4% against Bitcoin and 3.51% against USD. While ETC price may not have been severely impacted by the 51% impact, it may cast additional doubt upon developer interest and use cases for ETC protocol. The project has little demand and the majority of dApp projects and ICOs took place on Ethereum blockchain, not Ethereum Classic. (RS)

7 days ago

Coinbase says Ethereum Classic Double Spending Exploit Involved More than $1.1 Million in Crypto

Coinbase has updated its statement about the recent 51% attack on Ethereum Classic (ETC) that took place yesterday. In addition to the first eight reorganizations that included double spends totaling 88,500 ETC ($460,000), Coinbase noted an additional 12 attacks which brings the total amount of reorganizations to 20. More than 219,500 ETC ($1.2) million were double spends. At the moment it is not clear why Coinbase increased the attacks to 20 and yesterday all trades, deposits, ​and withdrawals were halted. Coinbase has stated that none of its customers were affected by the hack. Japan’s bitFlyer exchange also claimed that the anomaly was a 51% attack and the exchange halted deposits and withdrawals. The Ethereum Classic team eventually tweeted that ASIC manufacturer “Linzhi is testing ASICS. Coinbase reported double spends; both may be true.” In response to this tweet, Linzhi’s director of operations, Wolfgang Spraul denied these claims and stated that Linzhi may be part of the attack itself. (RS)

7 days ago

Ethereum Classic Reels From 51% Attack: Double-Spends Reported

Coinbase has frozen trading of Ethereum Classic (ETC) as developers continue to clarify reports that the coin’s network suffered a blockchain reorganization attack. Coinbase, China And ASICs Originally reported as rumors January 6, ETC 00 has since succumbed to a mystery offensive which officials have yet to explain. The Coinbase move came following allegations from the exchange that ETC had undergone a reorganization and malicious parties had double spent coins worth almost $500,000, following what is known as a 51 percent attack, where one mining entity gains control of more than half of a network’s hash rate. On social media, ETC appeared uncertain about the true nature of the situation. In a now deleted tweet from Monday, officials claimed it was “more likely selfish mining” which had caused the upset. Subsequently, however, it became apparent that no questions had been definitively answered. “To be clear we are making no attempt to hide or downplay recent events,” they wrote in a more recent tweet. Facts are facts and as the situation develops we’ll soon get a full picture of what actually took place. To be clear we are making no attempt to hide or downplay recent events. Facts are facts and as the situation develops we'll soon get a full picture of what actually took place.Linzhi is testing ASICS. Coinbase reported double spends; both may be true. In time we will see. https://t.co/bbq6eqIoiS — Ethereum Classic (@eth_classic) January 7, 2019 Exposure Woes At the same time, ETC poured suspicion on one mining entity, Linzhi, and its use of ASIC mining equipment. When quizzed by cryptocurrency news outlet CoinDesk, however, the Chinese company had already flatly rejected any implication of foul play. “We are categorically denying such claims, they are entirely baseless and may be part of the attack itself,” director of operations Wolfgang Spraul wrote in an email. ETC/USD fell as the news surfaced, reaching 6 percent losses in 24 hours and dropping below $5. Elsewhere, commentator grubles noted the “liability” factor for exchanges such as Coinbase was less with ETC versus Ethereum (ETH) itself than with the Bitcoin Cash (BCH) hard fork and Bitcoin (BTC). A split of BCH had likewise undergone a reorganization after it formed its own chain. “ETC has 4.8% of ETH’s hash rate bcash has 3.7% of Bitcoin’s hash rate. [Bitcoin Cash] is more of a liability for exchanges than ETC,” he wrote. Though 51 percent attack resource Crypto51 shows that a rented hash power attack would cost roughly $10,000 for BCH per hour compared to $4,700 for ETC. Vertcoin and Bitcoin Gold have also suffered 51 percent attacks in 2018, proving that market capitalization is a poor metric for measuring network security. Coinbase will keep hold of all ETC funds deposited with it until further notice. What do you think about the Ethereum Classic network attack? Let us know in the comments below! Images courtesy of Shutterstock The post Ethereum Classic Reels From 51% Attack: Double-Spends Reported appeared first on Bitcoinist.com.

7 days ago

Ethereum Classic [ETC]: A deep-dive into 51% attack leading to the loss of $1.1 million worth ETCs

Opinion Cryptocurrencies - money of the future. Bitcoin and cryptocurrencies promised a lot of things and along with those promises came the problems that we would never have faced if we stuck to the fiat system. But then again the world isn’t all black and white. As promising and strong cryptocurrencies sound, they aren’t almighty and invulnerable, they do have drawbacks like the one that has taken Ethereum Classic [ETC] down temporarily. Satoshi Nakamoto envisioned how Bitcoin network, which makes use of Proof-of-Work [PoW], could be attacked in his whitepaper. Nakamoto stated: “If a greedy attacker is able to assemble more CPU power than all the honest nodes, he would have to choose between using it to defraud people by stealing back his payments, or using it to generate new coins.” Assembling of CPU power came to be known as a “51% attack”, i.e., if a person/organization amassed more than 50% of the total hash power that is being used to mine a particular coin, then that coin could be controlled by the said person. The person could go back and change the history in the blocks, rewrite transactions, generate more coins, add more blocks to it. This attack is the major drawback of PoW and sometimes referred to as “security risk” or “attack vector”. Ethereum Classic [ETC], a fork of Ethereum which took place in July 2016, has been the victim of the aforementioned and its blockchain has been “reorged”. Reorged is a short-form of “chain reorganization” in which a person with enough hash power takes control of the blockchain and goes back to the block of his liking and extends an alternative block history as per his liking. The 51% attack was reported by Coinbase on January 7, 2019, but a few people on Twitter had already whiffed out the 51% attack rumors. Pierre Rochard, a well-known Bitcoin enthusiast, asked ETC developer Donal McIntyre on Twitter: “Was there a deep reorg on Ethereum Classic yesterday?... 75 blocks deep I hear, with a doublespend” Donal McIntyre replied: “Well ETC is still small and has many enemies so an attack with sufficient GPU power may be plausible, but I will check with others in the ecosystem.” The devs realized that there was an attack and as per the blog by Coinbase, a total of 219,500 ETC worth a whopping $1.1 million was double spent. Why ETC? 51% attacks are not very uncommon; they keep happening from time to time on smaller blockchains that are still nascent and are under development. The reasons that could summarize why ETC faced this 51% attack could be: ETC uses the same mining algorithm as Ethereum, and as compared to ETH, ETC has only a fraction of its mining power i.e., hash rate. So, a temporary shift in the hashing power from ETH to ETC could easily allow someone to launch a 51% attack. With the developments happening in the cryptocurrency world and it reaching mainstream attention/adoption, mining has also become institutionalized and a majority of the hashing power for most top-10 coins is derived from mining pools. ETC, as per Crypto51.app, had a total of 112% of hash rate coming from one such pool, “Nicehash”. The ETC network is still small. All PoW based assets are susceptible to 51% attacks. As per Crypto51.app, the total network hash rate for ETC was at a mere 8TH/s as compared to that of Bitcoin [BTC] 42,336 PH/s or Ethereum’s 171 TH/s. Moreover, the cost of launching a 51% attack for ETC would only cost ~$4,404 per hour. Future of ETC Charlie Lee suggested a possible workaround for this problem that ETC is facing in a tweet. He said: “Be careful w/coins that are not dominant in their respective mining algorithm, especially ones that are NiceHash-able. ETC has less than 5% of the total Ethash hashrate and is 98% NiceHash-able. 1-hr attack costs $5k. Almost $500k has been double spent” ETC dev, Donald McIntyre in his blog stated: “I think that continuing to build the stack as planned (a secure PoW base layer, with layer 2 sidechains, plus developer tools, continuous efficiency gains and adding of new features in the long term) will get ETC closer to the long term vision of a blockchain perfectly suitable for secure decentralized computing.” Furthermore, he added: “With the above in mind I think the best path is to explore a mining algorithm change to put ETC in a unique, incompatible PoW niche. Even if that implies a tradeoff as miners will have less optionality to point their infrastructure to different chains depending on the profitability of the day.” Conspiracies Everywhere: A Twitter user @_itsanhonour tweeted suggesting that the ETC’s 51% attack was some sort of a conspiracy theory as OKEx exchange is the largest source of volume ETC. Peter Todd, a well-known person in the crypto-community, tweeted: To the above tweet, a user @Cryptojack2 suggested that Vitalik Buterin, the creator of Ethereum organized the attack. He commented: “yep, makes perf sense- not because it is the true defin of SHITCOIN- no devs,hugely inflated MC,no real usage(besides being

7 days ago


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