Ethereum Classic suffered a 51% attack in the early morning hours of August 1.
A blog post from the ETC cooperative The attackers flooded the network with blocks mined offline. As a result, the network was unable to process the transaction volume, which led to a reorganization of the chain and a division between the nodes.
“Miner 0x75d1e5477f1fdaad6e0e3d433ab69b08c482f14e released offline mine blocks worth around 12 hours, which resulted in a major reorganization. OpenEthereum nodes were unable to cope with this major reorganization, resulting in chain splitting with OpenEthereum nodes on one side and Core Geth, Multi-Geth, and Hyperledger Besu nodes on the other. "
Investigations are currently ongoing into the full extent of the damage caused.
So far, these lines of investigation have shown no evidence of double expenditure.
In response, and as a precaution, some exchanges, including Poloniex, have suspended ETC deposits and withdrawals.
Ethereum Classic Core developer, Stevan Lohja, continued that an unidentified error was the cause of the chain splitting at the time of the network flooding.
Lohja recommended node operators running OpenEthereum, and multi-geth nodes immediately migrate to core-geth or Hyperledger Besu.
Despite the upheavals, he tried to reassure stakeholders that things were going as usual.
“The majority chain works normally. The big miners who accidentally mine the wrong chain migrate to Core Geth and other ETC service providers. "
Ethereum Classic was previously 51% attacked
Previously, 51% of Ethereum Classic had been attacked in January 2019.
Although the full extent of the current attack is unknown, it was classified in January 2019 by Coinbase as a "deep reorganization" with confirmed double spending totaling 219,500 ETC (or $ 1.1 million at that time).
"This is known as" chain reorganization "or" Reorg "for short. All reorgs have a "depth", ie the number of blocks that have been replaced, and a "length", ie the number of new blocks that have been replaced. "
Back then, the incident sparked discussions about the viability and security of proof-of-work systems (PoW).
As the two best-known PoW protocols in space, some even predicted the decline of Bitcoin and Ethereum.
Confusion among investors led to both Ethereum Classic and Ethereum being sold out following the attack on Ethereum Classic.
Matti Greenspan I wanted to emphasize that Ethereum Classic and Ethereum are clearly separate entities. He also argued for PoW and said:
“The reason for this is that Ethereum has an approximately 20-fold hash rate of Ethereum Classic. So while it might be possible to temporarily get enough hashrates to control 51% of the ETC network, it would be practically implausible to influence ETH in this way. "
Ethereum Classic sold out during the weekend attack and closed at 9% during the day.
However, the price campaign printed a wick from Daul Maul. It was extended up to $ 8.30 and up to $ 6.50 to end the day at $ 7.18.
Ethereum Classic daily chart YTD. (Source: tradingview.com)
Given that this is the second 51% attack in less than two years, investors are asking about the measures taken after the first attack.
Or is this an inevitability for all PoW protocols that lack the hashing power of Ethereum and Bitcoin?