Coinbase Uncovers 51% Attack on Ethereum Classic Protocol

Coinbase Uncovers 51% Attack on Ethereum Classic Protocol

Coinbase published a blog post revealing a deep chain reorganization attack with double spend on ETC totaling to 219,500 of the coins equivalent to approximately $1.1 million

On 5 January 2019, Coinbase temporarily ceased on-chain ETC transactions following the discovery of a 51% attack. The exchange found eight more attacks subsequent to the first discovery with a sum of 88,500 ETC or $460,000 in double spend. In the latest update, 12 more deep chain reorganization attacks was detected carrying a total of 219,500 ETC or $1.1 million in double spend.

Though the initial discoverer of the attack, the exchange emphasized they are not the objective of it. As of yet, there is no information on whom the attack is targetting.

User funds are secure and Coinbase, currently assessing the security of reinstating ETC transactions, will give updates on the status of ETC support.

A Response from Ethereum Classic Team

Ethereum Classic replies to Coinbase through Twitter saying, the exchange neglected to inform the ETC team before running the blog post.

A Laconic on Double Spend

An attack such as the 51% attack or deep chain reorganization is not easy to execute, especially against networks with huge market capitalizations. But the opposite is true for coins with lesser capitalization. It requires the perpetrator to gain the greater share of a network’s hashrate; the longest chain. The attacker will then be able to tamper the ledger, thus, restructuring the blockchain. The attacker is then able to do double spend by reversing previously confirmed transactions.

Small-cap cryptocurrencies like Bitcoin Gold (BTG), Litecoin Cash (LCC), Verge (XVG), Vertcoin (VTC), and ZenCash (ZEN) encountered such an attack to their protocol in 2018. The difference between the ETC incident and those from last year is that ETC is among the top-20 of the largest cryptocurrencies in the market.

Ethereum Classic

ETC
Price
8.24 USD 5.94%
0.00094140 BTC 5.00%
Volume, 24h
288,017,753 USD
0.00%
Marketcap
902,945,900 USD
0.33%
Emission
53%

Related news

Ethereum Classic releases Parity-Ethereum 2.5.2-beta to allow Atlantis hardfork on Morden, Kotti Classic networks

The original Ethereum [ETH] Co-founders, Vitalik Buterin and Charles Hoskinson, have contributed immensely to the crypto’s growth, while creating complete ecosystems as foundations to build future projects. Amidst the numerous hardforks, a continuation of the original Ethereum blockchain, Ethereum Classic [ETC], has also given rise to numerous projects that currently stand at the frontier of crypto-adoption and development. The ETC-inspired Parity Ethereum is delivering updates aimed at enabling hard forks on various blockchain networks. One of its latest updates, Parity-Ethereum 2.5.2-beta, will enable users perform the Atlantis hardfork on Morden and Kotti Classic networks. The Atlantis hardfork is a protocol upgrade that can incorporate pre-activated EIPs on Ethereum. Additionally, it will also help in easier migration of DApps between networks. The news was revealed by Ethereum Classic’s official twitter handle, which said, “Update enables Atlantis support on the #Kotti and #Morden ETC testnets. New Versions of ‘Parity-Ethereum’ Available: v2.5.2-beta; v2.4.7-stable” The update was expanded upon by the Github page that calls the update “a bug-fix release that improves performance and stability.” The previous upgrade brought in hardforking capability by introducing Petersburg and Kovan Network community hardforks on the Rinkeby and POA-Core Networks. While the supposedly fastest and lightest Ethereum client remains focused on delivering highly customizable blockchains for private use, speculators within the crypto-industry have taken notice of ETC’s rising market cap, which was $976 million, at press time. Further, the 18th-ranked cryptocurrency has also recorded a strong bullish trend since the beginning of 2019. Crypto-enthusiasts have thus, taken to Twitter to pledge their long-term support for ETC. One such user, @con_gang, replied to the original post and tweeted, “Let’s GO $ETC! Paaaaaaaaaaaaaaamp it Barry!!!!!!” Both the beta and stable versions of the update also contain bug fixes that are related to the rejecting, rather than truncating timestamps. These updates will also work towards removing dead chain configs. Further, some experts have pointed out that Parity Ethereum’s update that involved reworking the Sha3/keccak256 hash calculation, had also improved the overall performance of the network. While the GitHub link does not talk about light client support being fully functional yet, ETC’s game plan reflects an increased focus on long-term adoption rather than trading value recovery, which is similar to Ethereum and Cardano’s roadmap. The post Ethereum Classic releases Parity-Ethereum 2.5.2-beta to allow Atlantis hardfork on Morden, Kotti Classic networks appeared first on AMBCrypto.
AMBCrypto

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.