Bitcoin Fork suffers a “massive” 51% attack while attempting to “destroy” the cryptocurrency, causing the price to drop sharply
Bitcoin SV, a controversial offshoot of Bitcoin created after the 2017 Blocksize Wars, has suffered a “massive” attack that may have been an attempt to destroy the cryptocurrency.
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Bitcoin SV split off from an earlier branch of Bitcoin when developers argued over how to scale and grow … [+]
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Bitcoin SV price, which did not rise along with Bitcoin and other major cryptocurrencies in the past year, has lost around 5% since the so-called 51% attack.
Such attacks are attempts by miners to secure cryptocurrency blockchains in exchange for tokens in order to overwhelm the network and reorganize transaction records, potentially leading to coins being double spent and ruining their value. All cryptocurrencies that use distributed ledger blockchains are vulnerable to 51% attacks, with Bitcoin itself suffering one of them in 2014.
“BSV is undergoing a massive 51% attack,” said Lucas Nuzzi, a network data product manager at Coin Metrics, on Twitter. “After an attack attempt yesterday, a serious hashing power was unleashed today at 11:46 am and the attackers succeeded.”
The attack resulted in three versions of the Bitcoin SV blockchain being mined at the same time.
“There was a lot of confusion in the mining pools after the attack, but only one (successful) 14 block [reorganization] since the attack began, “added Nuzzi.
“In response to the ongoing reorganization attack on the BSV network, the Bitcoin Association recommends that node operators mark the fraudulent chain as invalid,” said the Bitcoin Association, which manages the Bitcoin SV blockchain, on Twitter. “This will immediately put your node back in the chain supported by honest miners and lock the attacker’s chain.”
Bitcoin SV, itself a version of an earlier Bitcoin fork called Bitcoin Cash, was created in November 2018 after developers disagreed over growing Bitcoin cash.
“BSV is a threat to other so-called cryptocurrencies because it does what Bitcoin should always do,” a Bitcoin Association spokesman said via email in response to why someone might try to “destroy” the Bitcoin fork.
While Bitcoin, the largest cryptocurrency by value with a market capitalization of around $ 700 billion, has become known as a store of value, Bitcoin Cash and Bitcoin SV are aiming to become global payment networks.
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Bitcoin SV price has fallen since the 51% attack, and investors have lost confidence in the … [+]
However, both Bitcoin Cash and Bitcoin SV have suffered from charges of centralization, making them vulnerable to attack and manipulation.
Bitcoin SV is backed by Craig Wright, the Australian entrepreneur and founder of blockchain developer nChain, who claims to be the mysterious creator of Bitcoin, Satoshi Nakamoto. Wright has alienated much of the bitcoin and cryptocurrency community in persistent attempts to be recognized as a Nakamoto and claim billions of dollars worth of bitcoin.
“This latest attack has reportedly created three malicious forks with significant double-spend attempts, the first two being successfully fended off by honest miners who oppose fraudulent double-spend according to the Bitcoin whitepaper,” said Steve Shadders, nChain Chief Technology officer said in email comments.
“The third chain is much smaller, only 13 blocks that the miners are turning around as it is much younger. While the motive is not entirely clear at the moment, it probably seems to be little more than theft and profiteering and the fact that we can now fend off such actions is very encouraging, it has kept the exchanges that were the target of these scams safe and consistent completely to the white paper. “