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(Bloomberg) – Ethereum Classic, an offshoot of the second largest cryptocurrency, remains under attack by some of the so-called miners whose servers support the underlying network operations, according to the cooperative that funds the development of the digital currency.
Coinbase Inc., one of the world's largest trade in cryptocurrencies, said today that it had found "deep reorganizations" of the Ethereum Classic blockchain. As a result, around $ 1.1 million in digital coins has been spent twice. This may indicate a so-called 51% attack, in which some computers that support a network falsify transactions.
"It happened, everything that was published by Coinbase is accurate," said Anthony Lusardi, US director of the Ethereum Classic Cooperative, in a telephone interview.
Coinbase has stopped Ethereum Classic transactions, and other trades will probably follow the example. Ethereum Classic, which is the 18th largest currency by market value according to the data provider Coinmarketcap.com, has lost about 7.3% since last week.
"The lasting harm to ETC will come from exchanges that will consider insecure money and erase it," said Emin Gun Sirer, co-director of the Criptovalute initiative and Intelligent Contracts at Cornell University, in an e-mail. when exchanges reactivate negotiations. What is anyone's hypothesis – it is a fascinating experiment on the whole, and we will only see how much of the market value is based on fundamental and technical force, which evidently and incontrovertibly went to the window ".
The incident comes several weeks after the main development team that supported Ethereum Classic broke up due to lack of funds. In a post yesterday, developer Donald McIntyre, who worked for the group with taxes, called the attack "a bargaining stoppage" but said that a modification of the date algorithm mining could help protect the network in the future.
Ethereum Classic is only the latest victim of 51% attacks. Smaller coins like Bitcoin Gold and ZenCash have already suffered.
With double spent coins, the Ethereum Classic blockchain has failed in its essential task and the currency has no future, said Kyle Samani, managing partner of Crypto Hedge Fund Multicoin Capital.
"I am surprised that ETC does not fall 50% or more," he said in an email. "The most likely explanation is that the largest holders keep their assets out of the exchange," leaving them unable to transfer them back and sell, he said.
(Update the double spend amount in the second paragraph).
To contact the journalist about this story: Olga Kharif in Portland at the address [email protected]
To contact the editors responsible for this story: Nick Turner at [email protected] ,; Jeremy Herron at [email protected], David Scheer, Dave Liedtka
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