Ethereum Classic Suffered a Reorg

[BTC Future 3946]

Ethereum Classic ($ETC) suffered a major incident a few days ago. A reorg happened, allowing a rogue miner to add more than 3,000 blocks in the chain, during a time when the major ETC miner "2Miners" was down for maintenance. Researchers are still trying to find if this was an intentional attack on the Ethereum blockchain, although it seems that it could be a rare occasion as the blocks mined by the rogue miner were mostly empty (not containing transactions). The price of Ethereum Classic was not affected by this event although it certainly sents a message that not all blockchains are as secure as they claim.

Source: Coinmarketcap

What is Ethereum Classic:

Ethereum Classic (ETC) was the result of a fork on the original Ethereum chain in 2016, when Ethereum developers decided to erase transactions in the Ethereum blockchain, after the events of the DAO incident. 

Ethereum classic is the continuation of the Ethereum chain without this fork being applied. Miners and devs that disagreed with the Ethereum devs of erasing transactions (which stole $50 million from investors) continued supporting the chain unpatched and split from the original Ethereum chain, creating Ethereum Classic.

The Ethereum Classic blockchain has already suffered a 51% attack once (in January 2019 - link) having seen transactions getting reversed and double-spend, with the attackers profiting with $1,1m from this. 

 

 

What is a 51% attack:

A 51% attack is the major weakness of blockchain systems, meaning that an entity that takes over 51% of the network hash rate gets to decide which blocks are valid and gets to invalidate past blocks according to the time they retain their PoW dominance. Such attack invalidates decentralization and makes the blockchain and the coin useless as the entity in charge can spend transactions (i.e. sell move to exchange and sell for USD/BTC/etc.), instantly invalidate the block containing the transaction which sends the coins to the exchanges and double-spend the coins by sending them (and selling them) again. Similar attacks have happened on many other cryptocurrencies like Bitcoin Cash, Verge, Bitcoin Gold, and more. A 51% attack is hazardous and can destroy the price of a cryptocurrency as the system which is based on trusting the code breaks apart. A blockchain that is not secure has no reason to exist.

Source: Hackernoon

 

Results of ETC 51% attack in 2019:

After the 2019 51% attack on ETC, major exchanges as Kraken and Coinbase increased the number of confirmations for depositing ETC on their websites to 43,000 blocks, meaning that anyone wanting to send his ETC coins to these exchanges would require a week to see them deposited. Perhaps this is a reason which deters massive sell-off of ETC at this point when the Ethereum Classic blockchain once again looks weak.

Source: Google

 

[EDIT]: It seems that Ethereum Classic was 51% attacked twice in a week after 4,000 blocks were re-orged and around $6million were double spend.

You can read the latest coindesk news on this here.

 

 

 

 

 

 

Edited August 6, 2020 by BTC Future

[rekter 8129]

Funny that eth classic was formed because they wanted unaltered history in the first place. So is there going to be ethereum classic classic next?

[BTC Future 3946]

22 minutes ago, rekter said:

Funny that eth classic was formed because they wanted unaltered history in the first place. So is there going to be ethereum classic classic next?

LOL. It seems that their main miner continued right after the 3000 blocks without validating them. They just accepted them as the longest chain and continued as nothing happened. Perhaps they didn't care to spend hours to validate these blocks wasting electricity. From what I've read they are trying to find what happened, but perhaps it will take days. 

[estee369 489]

Actually i do not like this crypto currency. I bought some ETC in almost 2 years ago and try to deposit it in my exchange wallet. It took almost 16 or may be more hour to reach its destination. I do not know what was the problem that time but I promised myself i will not withdraw this coin next time. 

[Whited35 15285]

@BTC Future I was also noticing this news inside CoinMarketCap app yesterday.The news was from my favorite site cryptoglobe.First of all, blockchain reorganization resembles 51% attack and for Bitcoin network, I do not think like it will be possible from a single miner. According to report, a single miner was responsible for that ETC block reorganization which was occurred occurred at block 10,904,146 and researchers have not labeled it as an attack because miner behind that incident has been identified by them and possible reason can be, he has lost the internet connection while mining.I have so many doubts on ETC so you may get surprised, I have never bought ETC to trade.

[MuhammadSh 3067]

As you mentioned in a post lately you will focus to make useful posts here! and i can see that now! we should really being thankful for you to sharing informative topics like this here..

So let's go to the post , you mentioned many important issues in this cryptocurrencies world and it would be a little hard for beginners to understand it from reading it for the first time.

The 51 percent attack is really one of the most dangerous things if this cryptocurrencies world and it may destroy many cryptocurrencies!  So i would like to mentioned some of these currencies .. Zencash and Monacoin are suffered from 51% attack too.. 

So i don't think if Ect can survive again but i will still have doubts about it..

 

 

[Moaz 7239]

You are a good friend of the forum and you publish important topics in the world of crypto, I had a little information about Ethereum Classic and when was it created, and now that after I read your post I have become good information about this currency

[BTC Future 3946]

11 hours ago, MuhammadSh said:

So i would like to mentioned some of these currencies .. Zencash and Monacoin are suffered from 51% attack too..

Thank you for your kind words @MuhammadSh . You are right about these coins, they also fall into the same category of getting their blockchains compromised by 51% attacks.

 

11 hours ago, MuhammadSh said:

would be a little hard for beginners to understand it from reading it for the first time.

I thought of that too, and tried to speak about some subjects, still I can answer to any questions someone has. There are things I do not know either in the blockchain world and might find it difficult to find even on the internet. 

If anyone has a question feel free to ask here or in pm, I will reply. I might not know the answer either, as with all of us I am also learning from Cryptotalk, and honestly I found many posts that have helped me a lot.

[BTC Future 3946]

On 8/6/2020 at 9:34 AM, ndadukun12 said:

A secured network is more better than a faster network because security ensures that your money is always there.

I completely agree but it seems that most blockchains besides Bitcoin they suffer in security terms. Ethereum classic is probably totally useless right now, yet its price is still not zero for some reason. Similar events happened with IOTA, Verge and other coins. I get it that developers are trying and hoping to stabilize the networks and protect them somehow. Still besides IOTA the rest were supposed to be decentralized networks. Being subject to 51% attacks just makes them insecure and we can't trust their code anymore.

[kyoukage01 3181]

On 8/3/2020 at 4:20 PM, BTC Future said:

[EDIT]: It seems that Ethereum Classic was 51% attacked twice in a week after 4,000 blocks were re-orged and around $6million were double spend.

You can read the latest coindesk news on this here.

Again? What are the staff responsible for Ethereum's program code doing? If the attack came from the same person/group then there is a high chance that this event will be repeated again as long as whatever bug they are exploiting isn't fixed soon.

 

The more scary fact is that ETH is the current #2 in crypto rankings, and any more major events like these will have a negative impact not only on overall crypto's price on the market but also on potential future crypto users who are now more skeptical after this news reaches them.

 

[gourav789 2834]

Etherium classic is not good coin in my crypto assest list ( didn't have Reason behind it ) . Etherium classic price increase whenever Etherium start pumping in market . anyway at this time Etherium price is in good position .

[Mcd0d0 5882]

Well, thanks for sharing this kind of information mate, at first i didn't know that there's a existing coin which is the name is ethereum classic because i just knowing that there's only a ethereum and also the mini ethereum, i hope you should post more informative ideas.

[TimopheyKa 3900]

Wow, I didn't even know about the existence of this cryptocurrency! But what, I think, is her interest? They want to show what it used to be, the old ether. In fact, after reading and learning more, I realized that this cryptocurrency has very little demand, and its transactions are very long!

[Omar Ommeish 4872]

On 8/6/2020 at 9:34 AM, ndadukun12 said:

I hope they realise that people have and will invest a lot of money into the platform. I think the developers should work so much on the security aspect of the network. A secured network is more better than a faster network because security ensures that your money is always there.

I think the technical team is working on this because they fully understand that users want the most secure networks in order to save their money.

[Ackireseyer 56]

I know very little about this Etherum cryptocurrency, but thanks to the information you post I have become familiar with all the currencies that Yobit has, at the end of this campaign I will decide thanks to what I have learned which one to buy and sell.  I understand that, like Bitcoins, it is one of those with the highest demand for trading.

[tienda 8776]

Is not easy for a such coin like Ethereum Classic to grow and to be popular more than  the original, the same things happens with BitcoinCash, Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin and Ethereum Classic is a cryptocurrency that is a fork of Etereum.

[Captain Karim 0]

The latest hack on the Ethereum Classic network was a huge loss that was estimated at millions of dollars and all of that was due to the network acquisition attack, honestly I don't know why the Ethereum Classic network continues to work while Ethereum offers hundreds of times better service.

[prabesh2058 171]

wow. thats intresting.

I didnt knew that ethereum classics was formed because ethereum was hacked.

But i think ethereum classics is one of the best investment.Its price is around 5$ from some time so its the perfect time to buy and hold ethereum classics. We can see that this coin has a lot of potential since its price was once reached almost 50$ which means it will give 50 times profit in future if it again achieve that price which is not impossible.

So i had invested for few ethereum classics and waiting for price to increase 😂

[Shaza Ahmad 1682]

This incident cannot be described as being less than a major calamity, the Ethereum Classic network has been subjected to many breaches since its inception until today, I do not know why it continues to work or even why people invest in a poorly secured network or even why the team does not develop the network and raise Level of protection at least.

[khan22 3478]

On 8/3/2020 at 9:59 PM, estee369 said:

Actually i do not like this crypto currency. I bought some ETC in almost 2 years ago and try to deposit it in my exchange wallet. It took almost 16 or may be more hour to reach its destination. I do not know what was the problem that time but I promised myself i will not withdraw this coin next time. 

ETH will be send instantly it do not take so much time but if the market is busy and the transactions are so much than that time it take time almost 24 hours and than you receive the coins in another wallet.

[Cryptomint 433]

Thanks for sharing bthe details I was thinking about the 51% attack but I didn't understand but now you explained very well so it so good.

[Francy Mory 543]

I appreciate the valuable information that you have just provided on this forum. It is good to keep track of that and that they have resolved the unexpected situation because we really need to invest in reliable and safe currencies to do business transactions successfully.