Blockchain Network Vertcoin Loses $100 000 Due To 51% Attacks
The Vertcoin blockchain project lost more than $100,000 after a flood of 51% hacker attacks, which also caused 22 network reorganizations, according to a new survey.
Mark Nesbitt, the security specialist at Coinbase, reports that by the time of the last network reorganization, more than 300 blocks had been created, which caused significant problems in the work of the entire blockchain. Currently, the Vertcoin project, which was established in 2014, suffers from numerous 51% attacks. In 2015, the creators of this network announced the transition to a Lyra2RE algorithm, which, probably, contained the vulnerability.
Nesbitt claims that the network experienced at least 22 deep regroupings, 15 of which occurred due to double spending — a network error in which cryptocurrencies might be spent more than once. The first of the attacks was registered in October. Then the network regrouped 8 times, three of which occurred due to double spending in the amount of 71,243 VTC (about $21,000).
The network reorganization takes place when a miner (or a group of miners in pools) has more power than other participants, which allows him or her to manipulate the blocks. This situation can be eliminated by one of the local clients, but when the network is supported by a single client, it threatens the whole blockchain. Nesbitt added that the 300th block in the Vertcoin blockchain was valued at more than $100,000 in VTC.
“Exchanges that support these assets will continue to suffer losses, with the ultimate result that exchanges will be forced to delist these assets”,
— Mark Nesbitt concluded in his survey.
As previously reported, hackers attacked Media Prima, the Malaysian largest media company, and blocked access to its computers. Later, the fraudsters agreed to restore access for 1000 bitcoins.