ETC is hacked again. Is this the beginning of the end?
Our attentive readers will remember that we recently wrote about two 51% attacks that took place within the Blockchain of the popular Ethereum Classic (ETC). The two hacker attacks brought a lot of hassle and loss to the system, as well as to its users. Nevertheless, even then we said that this is only the beginning. We immediately noted that the coin will be subject to many more attacks, and one of these took place just today. Next, we will tell you the details of the new hack, consider its consequences, and also draw a conclusion: is it worth continuing to work with Ethereum Classic. So, without further ado, let’s get started.
What is known at the moment
It is worth getting into the position of developers and heads of the company, who are now in a disgusting situation. That is why it is absolutely not surprising that the details of the event have not yet been published. Nevertheless, we can say with confidence that the 51% attack took place. Similar to what happened in the ETC in the past. Does this indicate the incompetence of the creators of the coin, who were unable to take measures to ensure the security of the currency? Not really.
The reason for this attack was, is and remains the Proof-of-Work algorithm, which underlies many old-generation cryptocurrencies. Including Ethereum Classic. The use of this algorithm implies such a combination of circumstances in which, in theory, one user can get most of the equipment running in the system. And get, thanks to the available computing power, almost complete control over the coin. However, as practice has shown, ETH Classic is built in such a way that the system can be easily tricked by creating an imitation of equipment capture. It is enough just to rent a certain number of servers and load the system with frequent requests. Thus, the Blockchain goes astray and begins to create new branches from the standard line of the system.
How serious is ETC hack?
In the case of today’s attack, the newly created Blockchain has gone deep enough into the underlying protocols. The fictitious system works for the last 7000 blocks; it was from these values that the protocol was split. That is why miners are recommended to set the confirmation of the transaction to exactly 7000 blocks. This is the only way to properly process the received cryptocurrency and get honest money. Note that the damage is quite serious. Judging by the calculations, with the average productivity of the ETC system, this hack makes the last two days of Blockchain operation irrelevant. And you yourself understand what losses the multimillion-dollar company and its users incurred for 2 whole days of work in vain.
What are the consequences of attacks 51%
It is worth noting that, like any other interference in the work of cryptocurrency, 51% attacks are devastating. Judging by the most conservative estimates, the damage from the first burglary in August amounted to about $ 5.6 million. The second attack enriched its curators by a whopping $ 1.6 million. The fact is that unsuspecting miners continue to work, producing cryptocurrency that is not valid immediately after the sale. The authors of the new blockchain branch take coins for themselves, sell assets and enjoy relatively easy money.
But nothing is known about the losses from this hack. Nevertheless, we can again draw very reasonable conclusions. It is enough to remember that the exchanges have already begun to refuse cooperation with ETC, as the simple truth becomes obvious – the cryptocurrency is not long left. If the developers do not take emergency measures, if they cannot say with confidence that the hacks will not happen again, the coin is doomed to fail. Most likely, large platforms will simply refuse to cooperate with such a problematic asset, which creates unnecessary interference in the operation of exchanges, exchangers and other services. But we certainly hope for a favorable outcome from this difficult period for Ethereum Classic.
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