51% Attacks Alerts Proof of Work Teams

A series of attacks that swiped $18m worth of Bitcoin Gold, and a total of $3.5m worth of Verge has left many PoW teams alert.

It seems that the hackers have started using a strategy of manipulating the Proof-of-Work-based coins, which resulted in as much as 51% attacks.

PoW systems against attacks

The 51% attacks are characterized by hacks which take control of the coin’s hash rate before performing a series of fraudulent transactions.

In Verge’s example, the hackers exploited one if its five algorithms. It was enough to reduce the mining difficulty in order to manipulate the whole network. Bitcoin Gold ceded in an attack against its Equihash algorithm.

After the recurrent attacks, the developer teams jumped on the defense. The crypto-owners have been notified that their assets in Bitcoin (BTC), Ethereum Classic and ZCash are protected because an attack would be much more expensive. For example, about $2.2billion would be necessary in order to initiate an attack on BTC.

Bitcoin Gold has become one of the targets due to its low hash rate compared to others.

Different measures have been launched in response to attacks. Maidsafe proposed a new consensus mechanism, while Binance has increased the number of confirmations for depositing Equihash-based coins.

The alert remains

There will still remain a big risk for the coins based on Proof of Work.  Some teams have already set up scripts to be notified of any suspicious changes in the coin hash rate. High measures will continue to be implemented to prevent similar scenarios to those that happened to Verge and Bitcoin Gold.

John
 

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