A successful attack after several unsuccessful ones
The data provider and cryptocurrency market analyst CoinMetrics identified, this Tuesday, August 3 at 5:45 p.m. French time, a 51% attack suffered by the Bitcoin SV (BSV) blockchain. This attack was witnessed by FARUM, CoinMetrics’ blockchain security tracker.
FARUM has identified a 51% attack today on the BSV network at around 11:45 AM EDT.https: //t.co/Oy19UDw53t https://t.co/T3MMRHqPe8
– CoinMetrics.io (@coinmetrics) August 3, 2021
According to Lucas Nuzzi, CoinMetrics’ network data product manager, an unsuccessful attack had also taken place the day before:
“BSV is having a serious 51% attack. Following an attempted attack [la veille], a lot of hashing power was released and the hackers were successful this time around. “
Information confirmed by the Bitcoin Association, closely linked to the BSV, which later recommended that miners invalidate fraudulent blocks.
Bitcoin Association is aware of an active re-organization attack on the BSV network.
Miners are actively responding to the situation and working to defend the network. In parallel, our team are informing exchanges.
We will make further comment when more info becomes available.
– Bitcoin Association (@BitcoinAssn) August 3, 2021
Still of unknown origin, the attack lasted about twelve hours, including the reorganization of fourteen blocks. This news is of course very bad for confidence in the BSV, whose price has fallen by more than 7% since the attack.
However, this does not surprise connoisseurs. On the one hand, the BSV blockchain had already undergone several takeover attempts, including two dating from July 8, and one last two days ago. On the other hand, in recent weeks, Craig Wright, the founder of Bitcoin SV, who defines himself as Satoshi Nakamoto, has had the originality of promoting the BSV by judicial means Increased security of the BSV blockchain would have without doubtless was more helpful.
In addition, external wallet provider Gravity recently suspended BSV deposits and withdrawals due to lack of liquidity. Following the attack, some platforms suspended BSV transactions, including Huobi and Bittrex.
👉 On the same theme – A hacker pockets $ 5.6M in an attack on 51% of Ethereum Classic
The 51% attack, the fear of all blockchains
Regularly cited as the most serious problem the Bitcoin blockchain could face, the 51% attack means that an entity, which may be a mining pool or a group of hackers, controls 51% of a hash power. blockchain. By taking control of the majority of this power, it is then possible to unilaterally decide which blocks to add to the blockchain.
Until today, the various attacks of the 51% who succeeded have targeted small blockchains, less secure or not very transparent (Ethereum Classic, Verge, Bitcoin Cash). Large blockchains, such as Bitcoin and Ethereum, have an infinitesimal risk of experiencing the same.
What consequences will this 51% attack have on the BSV?
If we take the example of Ethereum Classic (ETC), the 51% attack does not always have catastrophic consequences for the blockchain concerned. We even notice that the more confidential the blockchain, the less the attack has long-term consequences.
In the case of BSV, it is difficult to know what the consequences will be. Nevertheless, it could be the same as those suffered by ETC. Indeed, the BSV blockchain comes from a fork of Bitcoin Cash, itself from a fork of BTC.
As for ETC, it is the result of a separation with the Ethereum blockchain. In other words, ETC and BSV come from the two big blockchains of Bitcoin and Ethereum. These alternative blockchains generally find it difficult to exist and their difficulties do not or very little affect the cryptocurrency market.
👉 To read – What is a 51% attack or double-spending?
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About the author: Benjamin Allouch
Lawyer specializing in digital law and personal data. He quickly became interested in bitcoin and blockchain technology, and founded the blog bitcoin-blockchain.fr. He is interested in the emergence of blockchain law and the legal consequences of this technology.
All articles by Benjamin Allouch.