Ethereum Classic Network Faces Another 51% Attack

The Ethereum Classic blockchain faces another 51% percent attack, making it the third attack this month. The latest attack has reorganized over 7,000 blocks, which is about two days of mining.

31 August 2020 | AtoZ Markets – Cryptocurrencies are gaining popularity. However, the risk associated with cryptos comes not only from their volatility but the threat of a hack. Blockchain has become more sophisticated to deal with hackers, but hackers are also becoming more savvy and cruel.

Hackers Target Ethereum Classic Third Time in This Month

On August 29, Austria’s cryptocurrency mining company Bitfly confirmed that the Ethereum Classic blockchain faces another 51% percent attack, which has reorganized more than 7,000 blocks. This was the third case in August. The first two attacks reorganized 3,693 blocks and 4,000 blocks, respectively. Bitfly tweeted:

“Today another large 51% attack occurred on the ETC network, which caused a reorganization of over 7000 blocks, which corresponds to approximately two days of mining. All lost blocks will be removed from the immature balance, and we will check all payouts for dropped txs.”

Ethereum Classic also confirmed the attack and promised to work on a potential solution to the attack. But these three attacks raise concerns about the security of the network. Ethereum Classic said:

“While ETC is still making progress in evaluating proposed solutions, we are aware of the current risk to the network at these low hash rate levels. To miners, exchanges, and other service providers, we suggest keeping confirmation requirements levels well above 7K for now.”

Bitfly also confirmed that with the first and second attacks, a hacker reorganized nearly 8,000 blocks and brought back about $9 million in double-spend transactions.

Okex exchange faced a direct loss of $5.6 million following this attack. OKEx is considering delisting the coin to protect itself from future losses. Even so, there is a good chance that some other exchanges could delist the coin due to security concerns of the network.

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