Ethereum Classic Might Have Been Hit by a 51% Attack

crypto exchange 51% attack ethereum classic

Late last night on Twitter, the official Ethereum Classic team noted that possible chain reorganization and double spend attacks are ongoing. They subsequently asked crypto exchanges and ETC mining pools to require as many as 400 confirmations for withdrawals and deposits.

The team noted that, to their knowledge, the ETC network is operating normally.

Chain Reorganizations and Double-Spends Afoot?

A chain reorganization is when a client in most blockchain designs discovers a longer chain which disregards blocks it had previously processed. “The longest chain wins” is one of the rules of decentralized networks. “Longest chain” is defined by various metrics including difficulty (the most miners were mining this version).

51% attacks are based on the concept of the longest chain. If a miner has enough hash power, they can essentially rewrite a blockchain to suit their needs. They can pay for goods, services, or even other cryptocurrencies and then rewrite the history of the blockchain so that these transactions never actually happened.

A 51% attack on the Bitcoin network is probably too expensive at present. However, Ethereum Classic does not enjoy the massive hashpower that Bitcoin and Ethereum have. According to ETCSTATS.net, at the time of writing they had just 8.8 terrahash. Compare this to Bitcoin, which has over 39 million terrashash at time of writing. Or a closer comparison to Ethereum proper, which has 190 TH/s.

ethereum classic mining
Ethereum Classic does not enjoy the massive hashpower that Bitcoin and Ethereum have.

These numbers represent the amount of hashpower that would be required to effect a chain reorganization or a double spend attack. As such, it is significantly less expensive to double-spend or create a reorganization on the Ethereum Classic network than it is on some others. It is still more expensive on the almost $600 million network than it is on many.

Ethereum Classic Exchanges Put on Notice

The ETC team stresses that they believe everything is fine. However, in a follow-up tweet they asked mining pools and exchanges to require as many as 400 confirmations.

They specifically tagged OKEx, the exchange where most of their volume takes place, along with some others. Compared to other cryptocurrencies, however, Ethereum Classic trading is pretty evenly spread across exchanges:

Ethereum Classic Might Have Been Hit by a 51% Attack 1
They specifically tagged OKEx, the exchange where most of their volume takes place, along with some others.

Increasing the number of required confirmations reduces the likelihood of victimization. It takes more hashpower for each additional block a nefarious miner wishes to republish or erase from the blockchain. Too much chaos results in a “hard fork.” The majority of the network decides which chain it will accept going forward.

Ethereum Classic itself comes from a hard fork surrounding an early bug in Ethereum. The legendary DAO Hack led some Ethereum community members to disagree with the decision to hard fork and preserve the original chain.

Update 1/7: The Ethereum Classic Twitter account posted an update that may provide clarity on the situation. The post claims that a crypto mining manufacturer was testing out a batch of new devices and engaged in selfish mining.

Disclosure: The author holds an investment position in ETC.

Featured Image from Shutterstock

Advertisement


Ethereum Classic Might Have Been Hit by a 51% Attack 2
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 42,110.00
ethereum
Ethereum (ETH) $ 2,834.54
cardano
Cardano (ADA) $ 2.23
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 340.67
xrp
XRP (XRP) $ 0.921355
solana
Solana (SOL) $ 130.65
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 28.78
dogecoin
Dogecoin (DOGE) $ 0.205052
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 42,110.00
ethereumEthereum (ETH)
$ 2,834.54
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 505.43
litecoinLitecoin (LTC)
$ 147.86
bitcoinBitcoin (BTC)
35.876,46
ethereumEthereum (ETH)
2.414,94
tetherTether (USDT)
0,851970
bitcoin-cashBitcoin Cash (BCH)
430,61
litecoinLitecoin (LTC)
125,97
bitcoinBitcoin (BTC)
30,727.04
ethereumEthereum (ETH)
2,068.32
tetherTether (USDT)
0.729685
bitcoin-cashBitcoin Cash (BCH)
368.80
litecoinLitecoin (LTC)
107.89

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,303 0.34 % 1.34 % 12.36 %
Ethereum2,853.8 0.28 % 2.88 % 16.74 %
Cardano2.250 0.43 % 4.77 % 5.26 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin341.85 0.02 % 4.39 % 16.93 %
XRP0.9276 0.67 % 2.55 % 13.78 %
Solana131.42 0.19 % 7.65 % 22.74 %
USD Coin1.000 0.13 % 0.26 % 0.09 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2065 0.31 % 2.42 % 14.65 %

bitcoin
Bitcoin (BTC) $ 42,110.00
ethereum
Ethereum (ETH) $ 2,834.54
cardano
Cardano (ADA) $ 2.23
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 340.67
xrp
XRP (XRP) $ 0.921355
solana
Solana (SOL) $ 130.65
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 28.78
dogecoin
Dogecoin (DOGE) $ 0.205052