Home Bitcoin Vertcoin Network Sabotaged by Another 51% Attack

Vertcoin Network Sabotaged by Another 51% Attack

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The Vertcoin (VTC) blockchain was 51% attacked on Sunday, December 1, which noticed 603 VTC blocks changed by 553 blocks from the attacker. This is the second time the ASIC resistant Vertcoin chain was ambushed, because the community suffered a 300-block reorg a 12 months in the past.

Also learn: Cryptocurrency Projects Aiming to be ‘ASIC Resistant’ Have Little Success

Vertcoin 51% Attacked Again

Vertcoin, a fork of the Bitcoin protocol, is another cryptocurrency that’s been round since January 2014. The group and builders behind the venture consider VTC is totally different as a result of it claims to be ASIC resistant. However, all through October and December 2018, the Vertcoin community dealt with a sequence of 51% assaults and various blockchain reorganizations (reorg).

Vertcoin Network Sabotaged by Another 51% Attack
Vertcoin handled 51% assaults and reorgs in October and December.

A 51% assault is when a single entity (miner) takes greater than 50% of the community’s hashpower, permitting them to reorg blocks and double spend cash. The 300-block reorg on Vertcoin final 12 months price greater than $100,000 from double spends. The state of affairs invoked VTC builders to vary its proof-of-work algorithm to a different algorithm referred to as Lyra2rev3. Less than a 12 months in a while December 1, 2019, the Vertcoin chain suffered one other 51% assault. James Lovejoy, Vertcoin’s lead developer, explained the situation:

On Sunday, 1 December 2019 15:19:47 GMT 603 blocks had been faraway from the VTC fundamental chain and changed by 553 attacker blocks. We observe that 600 blocks is the present affirmation requirement for VTC on Bittrex. There had been 5 double-spent outputs wherein ~ 125 VTC (~$29) was redirected. Each of the double-spent outputs are coinbase outputs owned by the attacker and it’s unknown to whom the cash had been initially despatched earlier than being swept to an attacker tackle after the reorg.

Vertcoin Network Sabotaged by Another 51% Attack

Cloud-Mining Service Nicehash Blamed Again

Similarly to last year’s attack, the captured hashrate was blamed on Nicehash. The firm sells hashpower to people and acts as a hashpower dealer market that connects sellers and miners. Lovejoy remarked that he seen on November 30 “a large upswing in hashrate rental prices for Lyra2rev3 on Nicehash.” “This was combined with workers connected to Nicehash’s stratum server being sent work for unknown (non-public) Vertcoin blocks,” Lovejoy added. Last 12 months’s assault was blamed on Nicehash too when observers said “there’s too much hashrate for rent at too low a price, resulting in zero capex and low opex to do attacks.” Despite being ASIC resistant, cloud-mining companies are actually capable of supply clients important parts of CPU and GPU-based hashrates.

Vertcoin Network Sabotaged by Another 51% Attack

Resisting mining centralization has been an enormous concern for a wide range of blockchains and the Monero (XMR) community has had its share of grievances as effectively. Last 12 months XMR noticed multiple forks as builders tried to bolster ASIC resistance. In May 2018, the Bitcoin Gold (BTG) venture suffered a 51% assault and lost $18 million in a single fell swoop. A big portion of the BTG double spends from the assault was stolen from Bittrex, finally inflicting the U.S. change to delist BTG.

Vertcoin Network Sabotaged by Another 51% Attack

With Sunday’s Vertcoin assault, Lovejoy emphasised that “it is possible that Bittrex was the original target.” However, the double spends had been aborted as a result of Bittrex had their pockets disabled. “It is also possible that no double spend was ever intended, and the attack was a proof of concept or sabotage attack,” Lovejoy added. Lovejoy mentioned the post-attack evaluation of the Nicehash order e-book on the time of the assault had proven “a large upswing in hashrate rental price” from each U.S. and EU markets. But after the assault, the rental value subsided, Lovejoy careworn, returning to the baseline market equilibrium.

What do you consider Vertcoin getting attacked once more? Why do you assume assaults like these occur? Let us know what you consider this topic within the feedback part beneath.

Image credit: Shutterstock, Vertcoin brand, and Lovejoy’s Github gist.

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Jamie Redman

Jamie Redman is a monetary tech journalist dwelling in Florida. Redman has been an lively member of the cryptocurrency group since 2011. He has a ardour for Bitcoin, open supply code, and decentralized functions. Redman has written hundreds of articles for information.Bitcoin.com in regards to the disruptive protocols rising at the moment.

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