Crypto Exchange Gate.io Confirms 51% Attack on Ethereum Classic, Promises Refunds - BITCOIN NET MAGZ

Crypto Exchange Gate.io Confirms 51% Attack on Ethereum Classic, Promises Refunds

- 16.22
Crypto Exchange Gate.io Confirms 51% Attack on Ethereum Classic, Promises Refunds


The business printed an analysis of their findings Jan. 8.

Gate.io Research has published its evaluation of ETC transactions on its own platform during the alleged attack, claiming it's discovered seven rollback trades -- four of which had been reportedly conducted by the attacker, moving a total of 54,200 ETC in total (worth $271,500 at press time).

Gate.io reports that the incident occurred over a period of 4 hours involving 0:40 and 4:20 Jan.7, 2019 UTC, where the transactions have been normally supported about the blockchain and subsequently invalidated following the malign network rollback. After providing details of 3 ETC addresses purportedly employed by the attacker, Gate.io Proceeds to explain:

    "Gate.io's censor successfully blocked [that the ] attacker's transactions at the beginning and submitted them to [a] manual exam. Unfortunately, during the 51% attack, all the transactions looked valid and confirmed nicely on the blockchain. The examiner passed the trades. It triggered about 40k ETC reduction due to this attack."

Gate.io says it's going to compensate its consumers' losses, saying"Gate.io will require all of the loss for those users." The exchange also guides additional crypto trading platforms to block trades stemming from the identified suspect speeches. The exchange also states it's raised its ETC transaction confirmation number to 500 and launched a stronger 51 percent detection security mechanism.

Today, Jan. 9, Chinese blockchain security company Slow Mist additionally printed a report also confirming a 51 percent assault and comprising and the same rollback trades reported by Gate.io.

The exchanges all reportedly moved to respond to odd hashpower activity signaling a potential 51 percent attack, in addition to Coinbase's own findings of double spending and"chain reorganizations."

The ETC dev team initially responded by refuting a 51 percent assault had taken place, saying that dual spends had not been detected.

As mentioned, a 51 percent assault can happen on blockchains which use a proof-of-work (PoW) algorithm, which basically entails a user or set seizing control of nearly all mining capability to seize control over the network. This, in particular, can enable the hazard actor to reverse trades with the opinion to double pay -- by transacting crypto for fiat money, and then rolling the deed back to recover the spent crypto, while pocketing the fiat.

Though the theoretical threat of majority attacks exists, practically seize control of a large hashrate blockchain is broadly considered to become prohibitively costly today. The PoW-based Bitcoin blockchain has not been compromised by a hijack of the network hashrate, but a few developers have nonetheless made the case for investigating potential PoW change.

 

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