Ethereum Classic 51-Percent Attack Hack
Cybersecurity and Crypto continue to have a tumultuous relationship
Big brother Coinbase had a warning recently, as they froze Ethereum Classic trading following an attack.
Here we go again! Coinbase is claiming that a malicious party was/may have been able to wrest control of more than 50 percent of ethereum classic’s network, and therefore was able to dominate decisions about what did and didn’t belong on the digital coin’s blockchain. Oh no!
Public blockchains and cryptocurrency exchanges don’t seem as secure as you’d want them to be in a world of better regulated crypto.
The danger is of course such a “51 percent attack” can allow someone to falsify transactions and spend the same holding more than once, fundamentally damaging the usefulness of a digital payment system — and people’s trust in it (to put it mildly!). I’m starting to get tired of this tiresome cycle of hard forks, internal bickering and crypto hedge fund drama we are seeing with cryptocurrency volatility, the great hush of ICOs and so forth of 2018.
Where’s the positive News at? The exchange and wallet firm, Coinbase, said it had detected a so-called “chain reorganization” in which nearly $500,000 worth of ethereum classic was spent twice — an anomaly that is extremely rare for cryptocurrencies. Yikes!
What’s dire about this is Ethereum was gaining momentum in recent weeks. So then what’s another wave of fear washing through the cryptocurrency community. Ethereum Classic (ETC) — is the original version of the Ethereum network after all. ETH is now at $150 which is a lot better than in late 2018. ETC is about $5, as the 18th ranked altcoin.
So big brother Coinbase will now have to pause ETC temporarily as one of its existing portfolio. According to CNBC, in theory the records on a blockchain cannot be altered — because enough disparate parties are incentivized to maintain an accurate accounting of who owns what. But a 51 percent attack can change that calculus, allowing someone to falsify transactions and spend the same holding more than once
Last year, litecoin cash and zencash both suffered 51 percent attacks. These aren’t isolated incidents, but long-term security threats for cryptocurrencies. Incredibly ETC is denying such an event even occurred:
Coinbase tells a different story.
The lack of transparency and honesty in altcoins is really getting tiresome as the promise of “regulation” is also a drawn out process. It makes a mockery of blockchain tech to be honest. The very technology that is supposed to augment public trust.
The team behind ethereum classic said Coinbase did not try to connect with it and it’s still an “ongoing process.” Big brother already has too much power in a space that is supposed to be decentralized. Crypto, what have you done for me lately? I’m turning into a crypto cynic.