Look4App Infographic: 51% Attack on Blockchain - Ethereum Classic Case
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Look4App Infographic: 51% Attack on Blockchain Ethereum Classic Case 219,500 ETC double-spent (ca. $1.1M)
How does 51% attack work?
Attacker basically races ahead of everyone else, creating an alternative blockchain version and undoing his previous transaction. It allows him to spend the funds again.
- The attacker creates transaction officially confirmed by the blockchain.
- The attacker creates an alternative version of blockchain where the transaction never happened.
- Attacker presents the alternative version as the correct one, overwriting original transaction.
The miner identified as “Private Pool 0x3ccc8f74” on GasTracker.io attacked twice:
On January 5th of 2019 through 6th 7 hours On January 6th through 7th 12 hours
The attacks are easy to spot on GasTracker.io graph.
What happened with the money?
During 51% attacks, the funds are usually being sent to exchanges and withdrawn.
• Gate.io lost 40,000 ETC • Bitrue almost lost 13,000 ETC (the transaction has been blocked) Attacker returned part of the funds stolen from Gate.io.
What’s next for Ethereum Classic?
The currency is still in danger due to low hashrate. Another attacker can hire similar computing power to repeat the attack.
To prevent this, the number of required confirmations on Gate.io has been raised to 4,000 (ca. 1000 minutes of confirmation time).
Vulnerability to 51% attack is an inherent part of decentralized public blockchains. To prevent it, Ethereum Classic needs more hashing power and consider solutions that will monitor and create an active shield for the time of the attack.
Bartosz Robaszewski, ICO Advisor, CEO of Look4App
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