ETC Double Spending Attack incident: The Final Straw to overwhelm POW Mechanism.
‘The world of Cryptocurrency is like a dark forest. Each currency is a hunter with a gun. They must sneak into the woods, trying not to let the foot make a little sound, and even breathing must be careful. They quietly increase their computing power and hide their algorithms, because any currency that exposes their own algorithms will be quickly destroyed, which is the picture of the future cryptocurrency world.’ Said by the Founder of Quantum- Luo JinHai
Ten years after the Bitcoin white paper’s appearance and in Nakamoto’s white paper, a fully peer-to-peer electronic cash trading system has. This cash system adopts the Workload Proof Mechanism (POW) and a feasible incentive system to guarantee the safety of the system.
“If a greedy attacker could muster more CPU power than all honest nodes add up, then he has a choice: either use it for honest work to produce a new digital currency or use it for a Double Spending attack. He would find it more profitable to play by the rules and work honestly.” Nakamoto wrote in the Incentive section of the Bitcoin white paper. As by following rules allows him to have more digital assets, rather than destroying the system, the effectiveness of his own wealth is undermined.
Back then, the Bitcoin white paper constructed the encrypted currency as an ideal utopian world, In Nakamoto’s mind, people mine for bitcoin through the CPU and each one of which acts as a vote, adjudicating the differences that arise. Now, from the CPU mining to the miner then to the calculation of power rental and other abuses caused; Hashi Wars between Currencies; Speculators shorting and so on are beyond the original vision of Nakamoto.
For example the recent incident, the Double Spending attack of ETC
On January 5 at 19:58:15 UTC time, the Ethereum Classic Network (ETC) was 51% attacked. The attacks were mainly concentrated on the Bitrue Exchange, where thousands of ETC were double-spend. Prior to the attack, it was observed that a large amount of power was leased on the Nicehash platform to mine for ETC, and the attackers’ targets were not limited to a few thousand ETC. The invisible blow lasted a week because the ETC development team reacted cautiously and steadily, and the other team had a lot of power in their hands. In addition to Bitrue, large exchanges such as Coinbase, Coincheck, and Gate.io are also under attack. So far, more than 200000 ETC have been stolen, with losses exceeding $1 million. Through the ETC attack incident, we can easily find that the POW world seems safe but it is also very dangerous. From a currency point of view, although the ETC was under attack at 51%, the decline in ETC was kept under 20% There has been no panicked decline and ETC developers and community members are fighting the loss of computing power in various ways. However, the attack exposed the vulnerability of the POW currency, which some experts said that it has stopped but if someone can rent enough ETC to launch a 51% attack on the network, the risk of an attack on the ETC network remains.
In the early days of POW’s world, arithmetic is a very important position. However, in the later stage, the more complicated betting version evolved in the question of whether consensus should follow the power or the power of calculation or should calculation follow the consensus. Ethereum is abandoning the POW mechanism and turning to the direction of POS mechanism, EOS also abandons the POW mechanism and directly adopts the DPOS mechanism. Visibly, the future of the weight of the power has gradually become lighter, the calculation of power has become the last straw over the POW mechanism.
About Ludos Protocol
Ludos Protocol is a purpose-built blockchain infrastructure project for the gaming community. As only the third blockchain project to be backed by Japanese investment giant Softbank, Ludos addresses numerous shortcomings in the existing gaming landscape. Its main chain + multi-sidechain architecture allows games to run entirely on their own blockchain, preventing scalability issues that have plagued previous blockchain-based games. Additionally, the Protocol seeks to create a gamer-friendly ecosystem whereby game developers and gamers can come together to easily crowdfund and build on the platform. The use of non-fungible tokens (NFT’s) within the ecosystem will allow gamers to swap assets in one game for assets in another. Finally, through their partnership with FullPay Japan, Ludos will give gamers the chance to use LUD tokens that are earned in-game to shop and buy at a range of retail stores in Japan and later the world.
Ludos Protocol Links
Telegram Channel: https://t.me/LudosProtocol
Telegram Announcement Channel: https://t.me/LudosAnnouncements
BitcoinTalk thread: https://bitcointalk.org/index.php?topic=5064140