Ethereum Classic (ETC) is feared to have suffered a 51 percent attack. As it has appeared, transactions on the platform have been rolled back causing major cryptocurrency exchanges like Coinbase to halt trading.
Ethereum Classic’s official twitter handle noted that the Ethereum Classic platform may have been compromised although the account noted that the platform is working as required. Surprisingly, hours later, the account released a fresh tweet warning virtual currency exchange to be on the lookout when handling Ethereum Classic transactions.
As noted by Quartz, One ETC miner “temporarily had more than 60% of the network’s hash rate.”
With such a huge hash rate controlled by a single entity, the entity had control:
“Over which transactions get processed on the blockchain, allowing them to mine a disproportionate large amount of the network’s blocks, double-spend coins by altering the blockchain, and generally reward themselves unjustly.”
Although the miner’s hash rate has since dropped, the miner has been controlling approximately 45 percent of Ethereum Classic’s hash rate for the past twenty-four hours.
It has since been established that most of the blocks added on the Ethereum Classic blockchain by the miner were empty. However, the malicious miner was able to transfer Ethereum Classic coins valued at around $500K.
Coinbase said it halted interactions with the Ethereum Classic blockchain when they:
“Observed repeated deep reorganizations of the Ethereum Classic blockchain, most of which contained double spends. The total value of the double spend that we have observed thus far is 88,500 ETC (approx $460,000)”.
On the contrary, ETC developers argued that a 51 percent attack cannot be defined by a harsh power consolidation thus ruling out the double spend claims.
Do you agree with the ETC developers that one miner controlling over 50 percent of the harsh power can not necessarily use the same ETC coin twice?
Let us know your thoughts in the comments section below.