Vertcoin Hit by 51% Attack, Losses $100,000 in Double Spending

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A bitcoin-replica launched with an aim to discourage miners from forming pools and gain a monopoly over its network has been compromised.
Mark Nesbitt, a security expert, revealed that the blockchain of Vertcoin, a peer-to-peer PoW cryptocurrency, is under a 51% attack. The Coinbase engineer found that some anonymous cybercriminals rented a large amount of ASIC hash rate to attack the four-year-old cryptocurrency network. They eventually got hold of more than 50% of the mining hash rate which allowed them to own and govern the Vertcoin public chain literally.
The integrity of a PoW cryptocurrency depends on the distributed nature of its network. It is considered decentralized when no miner or mining pool possesses more than 50% of the network hash rate. If a mining entity gains control of the majority of the hash power, then it could create separate blocks from any arbitrary previous block, creating two versions of the same blockchain. And if the alternative blockchain – controlled by a single entity – starts producing more blocks than the rest of the network, then it could lead to a situation termed as chain reorganization.
To worsen the situation, if a miner holds a large number of coins, it can also launch a double spending attack on the network. For instance, a miner can initiate a transaction on the main chain, but it can replicate the same transaction on the alternative fake chain as well. As a result, both the transactions send the same coin, and only one of them can be confirmed while the other remains invalid.
Altcoin Exchanges Vulnerable
Nesbitt warned exchanges involved in the trading of PoW-based altcoins of potential losses, blaming their lack of effective countermeasures.
“This is because exchanges allow deposits to be hurriedly traded into different assets and then withdrawn,” he emphasized. “An attacker can make a soon-to-be-reversed deposit, trade for another asset, move the new asset off the platform, and then reverse the original deposit.”
Nesbitt cited similar incidents that have taken place in the industry this year, naming BTG, XVG, and MONA. They all eventually got delisted from some of the significant global cryptocurrency trading platforms.
“I encourage you to trade on exchanges that place the security of customer funds as their highest priority,” Nesbitt affirmed.

Author: Cryptobonx

Cryptobonx is a Crypto –Currency and Blockchain Enthusiast.He is a believer of transforming complex information into simple, actionable content.

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Vertcoin Hit by 51% Attack, Losses $100,000 in Double Spending

Altcoin News | Bitcoin News | Crypto News | Latest News

A bitcoin-replica launched with an aim to discourage miners from forming pools and gain a monopoly over its network has been compromised.
Mark Nesbitt, a security expert, revealed that the blockchain of Vertcoin, a peer-to-peer PoW cryptocurrency, is under a 51% attack. The Coinbase engineer found that some anonymous cybercriminals rented a large amount of ASIC hash rate to attack the four-year-old cryptocurrency network. They eventually got hold of more than 50% of the mining hash rate which allowed them to own and govern the Vertcoin public chain literally.
The integrity of a PoW cryptocurrency depends on the distributed nature of its network. It is considered decentralized when no miner or mining pool possesses more than 50% of the network hash rate. If a mining entity gains control of the majority of the hash power, then it could create separate blocks from any arbitrary previous block, creating two versions of the same blockchain. And if the alternative blockchain – controlled by a single entity – starts producing more blocks than the rest of the network, then it could lead to a situation termed as chain reorganization.
To worsen the situation, if a miner holds a large number of coins, it can also launch a double spending attack on the network. For instance, a miner can initiate a transaction on the main chain, but it can replicate the same transaction on the alternative fake chain as well. As a result, both the transactions send the same coin, and only one of them can be confirmed while the other remains invalid.
Altcoin Exchanges Vulnerable
Nesbitt warned exchanges involved in the trading of PoW-based altcoins of potential losses, blaming their lack of effective countermeasures.
“This is because exchanges allow deposits to be hurriedly traded into different assets and then withdrawn,” he emphasized. “An attacker can make a soon-to-be-reversed deposit, trade for another asset, move the new asset off the platform, and then reverse the original deposit.”
Nesbitt cited similar incidents that have taken place in the industry this year, naming BTG, XVG, and MONA. They all eventually got delisted from some of the significant global cryptocurrency trading platforms.
“I encourage you to trade on exchanges that place the security of customer funds as their highest priority,” Nesbitt affirmed.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

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Author: Cryptobonx

Cryptobonx is a Crypto –Currency and Blockchain Enthusiast.He is a believer of transforming complex information into simple, actionable content.

Leave a Comment

[js-disqus]

Latest Crypto News

Goals set by Justin Sun for Tron(trx)in 2019

On the 31st Of May 2018, Tron achieved independence from Ethereum and Launched its own Mainnet with the Intention of being a fully functional Public Blockchain that supports Creation and development of decentralized Apps (dApps)

Read More »

Crypto Regulation Commences in South Africa

The South African government today issued a statement regarding the steps it is taking on cryptocurrency trading by setting up a working group dedicated to regulating blockchain and crypto. Background Before we get into that,

Read More »

Facebook Hiring: 5 Cryptocurrency Positions Open

Something is definitely brewing in Facebook’s newly formed department. Early in May, there was a rumor that Facebook was interested in opening a cryptocurrency department within its headquarters. The advertised positions are: Two Software Engineers

Read More »

Crypto StartUps are Failing

Cryptocurrency start-ups have had a rough year with a huge section of them laying off loads of their workers with the  Bitcoin price crash. Bitcoin has lost around $280 billion of its value this year

Read More »

CNBC Reporting the surge of bitcoin to $100 back in 2013!!

https://www.youtube.com/watch?v=O3XvCbh8pQU reddit Buffer Facebook Twitter FREE CRYPTO COIN JUNKY HANDBOOK – 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more. CRYPTO TRADING STRATEGY GUIDES

Read More »

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