January 20, 2021 | AtoZ Markets – The privacy-focused cryptocurrency Firo (formerly Zcoin) has been hit by a 51% attack. The developers advised users not to make transactions until the network returns to normal.
We are under 51% attack at the moment. We recommend not to make transactions during this time until the network returns to a normal state. We will post updates when we have them. Note this is not a coding error but a nature of PoW. $XZC $FIRO— Firo (formerly Zcoin) (@firoorg) January 20, 2021
"This is not a bug in the code, but the nature of the Proof-of-Work consensus algorithm,” the developers noted.
According to them, the incident happened a few weeks before the implementation of Chainlocks. The mechanism prevents 51% attacks through the use of masternodes.
The team planned to integrate the new method of processing transactions immediately after activating the Lelantus privacy protocol and completing the network rebranding.
At the time of this writing article, the price of Firo has slid by about 15% while trading at $4.86.
What Is A 51% Attack?
A 51-percent attack takes place when one or more entities gain more than half from a blockchain network’s hashing power. It makes it possible for the blocks that make up the chain to be rewritten.
As a reminder, in November 2020, AtoZ Markets reported that the privacy-focused cryptocurrency network Grin suffered a 51% attack.
Read also: Ethereum Classic Suffers Second 51% Attack in a Week
In the same month, a group of anonymous miners took over most of the Bitcoin Cash ABC hashrate.
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