Dash to Be the Next “NiceHash-ed” Coin Following ETC 51% Attacks?
The media circus of ETC chain attacks have just dwindled, though the agitating community abhors a vacuum of chaos. A Redditor, by the name of “Crypto God”, cast another bombshell into the DASH community by alerting that some entity has laid its hands on more than 51% hash rate of the PoW coin. Concerns lie within the abnormality in its soaring shares of the Dash net hash.
Most troublesome of this alert, also topping up the credibility on the hand, is that a familiar term pops out again — NiceHash, a cloud crypto mining farm that took the blame for “collaborating” knowingly or unknowingly with the ringleaders behind the ETC 51% attackers. According to the website page demonstrating its mining statistics, its hash power allocated to X-11 coins, with Dash being the most high-profile crypto among the category, reaches a mind-boggling 1,473.87 TH/s, while the overall hash power sustaining the Dash network is merely 1,743 TH/s. To put into context here, NiceHash is capable of mobilizing more than 85% hash power sustaining the Dash network if it intends to, or is paid to. The number 85% dwarfs the minimal requirement for a 51% attack by a long haul.
“It is uncommon,” commented by Crypto God, “Usually NiceHash holds around 10–20% of PoW coins nethash and it is only dangerous for smaller forks of the PoW coin.”
People may argue that tremendous hash power could be distributed in a decentralized fashion, but the Redditor Crypto God pinched the flame by doing a thorough job — it managed to connect three out of the four large addresses garnering the unknown hash rate via the block explorer Dash Radar. Statistics cited by Crypto God show that the three addresses, with access to 53% of the Dash net hash, are controlled by one single entity. The Redditor speculated that the fourth address belonged to the same entity, but it failed to disclose a concrete connection in between.
The unusual situations exposed by this scout speak a lot more in a timing, following the successful, yet tragic, stories of ETC chain attacks, because the narrative surrounding the far-fetched 51% attacks might be changed for ever. The Pandora’s Box is now opened.
For Dash, there is another great motive to pull off a 51% attack right now — the ChainLocks implementation is to be accomplished, but still not in place. Proposed in DIP8, the protection mechanism ChainLocks will mitigate 51% attacks for Dash.
It’s far more profitable to steal a Dash coin ($86.57 at press time) than ETC ($5.05), while the cost coming with it is less disheartening. Citing statistics by Crypto 51, the theoretical cost of a 51% attack on the Dash network is merely $2,620 per hour, even lower than ETC’s $4,748. Though it would be unfair to set that figure of Bitcoin as a benchmark, $334,992 will add a little bit more perspective into the situation. The “NiceHash-able” parameters for Dash and ETC are 82% and 97% relatively, while Bitcoin reports 0%.
NiceHash, an abrupt upsurge in hash power, more than enough to reorg, relatively low costs… A combination of these key words just strike too close to home for those still grieving for the ETC 51% attacks.
Fingers crossed, not 51% attacks again.