A fork of Bitcoin Founded by a controversial Australian entrepreneur, it was the subject of a “massive” attack aimed at reorganizing its blockchain.
Bitcoin SV, the # 40 crypto, suffered from the 51 percent attack at 1:45 a.m. AEST today, CoinMetrics tweeted.
FARUM discovered a 51 percent attack on the BSV network at around 11:45 a.m. EDT today
– CoinMetrics.io (@coinmetrics) August 3, 2021
A 51 percent attack occurs when a group of miners manage to control most of the hash power (computing power) devoted to mining blocks on a blockchain, allowing them to censor transactions and reverse transactions while in control of the network. This could result in the parties behind the attack double spending their coins by presenting them for trade or payment and later reversing that transaction.
Bitcoin itself has never been the subject of a successful 51 percent attack, but a number of smaller cryptos, the largest of which is Ethereum classic, currently the No. 18 crypto.
In this latest attack, 100 blocks were rolled back, meaning 570,000 transactions were deleted, a researcher wrote. For a block that is mined every 10 minutes, that’s more than 16.5 hours of transactions.
Correction: The reorg was 100 (!) Blocks deep and deleted 570,000 transactions. It was just our warning system that didn’t expect anyone to try to reverse the entire blockchain and stop at 18.
– Nikita Zhavoronkov (@nikzh) August 3, 2021
Bitcoin SV emerged from a split in November 2018 with Bitcoin Cash – which itself was split off from Bitcoin in August 2017. (There’s a lot of drama in the crypto space.) It was created by Craig Steven Wright, the Australian developer who claims to be Bitcoins pseudonym creator Satoshi Nakamoto.
While the various Bitcoin forks have their supporters, it can be said that many in the community hate them and consider them contenders for the Bitcoin throne.
Sydney-based exchange, The Independent Reserve, delisted Bitcoin SV in January “in light of recent events and community feedback” after Wright filed legal claims on various websites hosting the original Bitcoin whitepaper.
The Bitcoin Association behind Bitcoin SV urged node operators to take steps to refute the “fraudulent” chain – an action that has been labeled hypocritical by some and goes against the cryptocurrency’s decentralized ethos.
If what you call the “fraudulent” chain is the longest, then it is not fraudulent; it is the only valid chain
Where did I get this wisdom from? Well the whitepaper of course 😁
– Snake ₿itken (@SnakeBitken) August 3, 2021
The attack was first reported by Coin Telegraph.
At 12:08 p.m. AEST, Bitcoin SV was down 4.2 percent to $ 137.89.
Crypto market down 1.1%
Overall, the crypto market had fallen 1.1 percent to $ 1.62 trillion, with Bitcoin Down 1.5 percent to $ 38,452.
Regulatory uncertainty could weigh on the market as a controversial crypto reporting requirement advances in a $ 1 billion infrastructure bill debated in the U.S. Senate. The move would require US crypto brokers to report crypto transactions to the IRS, but there is some lack of clarity as to what a crypto broker would do or whether it could include miners.
ether meanwhile, it changed hands at $ 2,525, 1.5 percent less than yesterday, ahead of its London hard fork tomorrow night (Australian time).
Terra (LUNA) was the top performer in the top 100, up 20.2 percent. The No. 20 crypto, Luna, is used to maintain the stability of Terra Stablecoins.
Eternal protocol was the second best winner, up 10.9 percent to get into the top 100 with 97. in our column with Apollo Capital.)
On the flip side, stack was the worst performer with a minus of 14.4 percent. Crypto No. 70, Stacks, is a platform for writing smart contracts on the Bitcoin blockchain.
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