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Coinbase Double discovered Spend in the case of Ethereum Classic – ETC Team denies a 51% attack – Coin Hero

Coinbase Double discovered Spend in the case of Ethereum Classic – ETC Team denies a 51% attack

Home News Coinbase discovered Double Spend in the case of Ethereum Classic – ETC Team denies a 51% attack

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Marcus Misiak –
08.01.2019

Yesterday, Monday, Coinbase published a contribution by developers of the company have declared that they have discovered a “deep-chain reorganization” of the Ethereum Classic (ETC) Blockchain. The developers of Etherum Classic deny that the Blockchain is the victim of a 51% attack and contradict the allegation of Double Spends.

Mark Nesbitt, an employee of Coinbase has processed the events in a recently published blog post. Nesbitt revealed that the Proof-of-Work System of Ethereum Classic, based on the ETHash algorithm, the victims of “repeated” Block”Reorgansationen” had become, which means that there is an unnamed attacker was able to modify the Blockchain-transactions in the recent past repeatedly.

Nesbitt concluded that about 88.500 ETC (about 450,000 USD) were double spent (“Double Spend”). Nesbitt took the data from the miner gate and tried to make every Reorg to show, and did his Best to determine the scale of each individual attack.

Coinbase said that they have responded in the interest of the protection of their users to the suspicious activity by exposed to the transactions of the funds involved in the ETC-Blockchain. Coinbase also said that it had identified the Double Spend, but not the target of these attacks was, and that all customers ‘ funds remained safe.

Double Spend Attacks

All the block chains, the use of the Proof-of-Work consensus algorithm, are, in principle, for 51%-Atttacken-prone. What applies to Bitcoin and Ethereum, but it would be because of the enormous Hashing Power decided more difficult, the network attack.

Simply put, it seems an attacker to have the majority of the Ethereum Classic Hashrate is secured, which enables him to reorganize the public ETC-Blockchain”,” in which he created a revised Ledger, and then for the Rest of the network is released. The implementation of the reorganization enabled the attacker, certain transactions that were previously confirmed in the network as a valid transactions, the “undo”, so that he could spend the same coins twice.

Ethereum Classic developers respond

The Ethereum Classic Team responded to the announcement of Coinbase in a Tweet and said that it was during the investigation an “ongoing process” and that Coinbase will not have spoken of his results prior to publication, with the ETC Team.

The developers of Ethereum Classic responded quickly to the allegations and stated that a Mining Pool is a part of the suspicious behavior, since it represents more than 50% of the Hash Rate of the network and “selfish Mining” operates. In a Tweet from the official ETC Accounts, the developers claim that the ASIC-manufacturer Linzhi was just about to test new Ethash machines, which led to a >50% network Hash Rate.

Reactions of the Crypto-community

Within the Crypto-community, there were numerous reactions regarding the incident of leading personalities, including Litecoin-founder Charlie Lee, Dogecoin founder Jackson Palmer and Ripple CTO David Schwartz .

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