Bitcoin SV was actually attacked by rogue stars in a series of 51% attacks on the network. What’s next for BSV?
Bitcoin Satoshi’s vision, a fork of another Bitcoin (BTC) fork, has undergone a reorganization (reorganization) attack on the blockchain for the third time in 3 months. The creators of Bitcoin SV (BSV) are urging all stakeholders to mark the destructive branch of the network as invalid.
The wave of attacks on Bitcoin SV, although supposedly reflected, highlights the dangers of Proof of Work (PoW) blockchains, which have a low number of hashrates to support their presence. Indeed, outside of Bitcoin SV, many networks such as Ethereum Classic (ETC) and Firo, formerly known as Zcoin, have actually fallen victim to these proven feats of blockchain reorganization.
While not all of these attacks are successful, some of them have huge financial implications for serious people and the network as a whole, as rogue stars responsible for destructive use of the network can double their “coins”. The problem has actually reached the point where it is theoretically possible to carry out these attacks with leased hash power of several thousand dollars.
Another attack of the blockchain reorganization
Earlier in August, Bitcoin SV suffered an alleged 51% attack, which resembled previous events from late June to the very first week of July. the main chain was running concurrently in the midst of a massive blockchain reorganization attack.
This type of attack occurs when a malicious star controls 51% of the hash rate of the network and can use this hash power to control and prevent block production, as well as double-spend coins. The August 3 event is intended to be a more massive use of the BSV counter as it was sourced from Bitcoin Cash (BCH) in 2018.
According to Nikita Zhavoronkov, the lead developer of the explorerBlockchair blockchain, at some point an attacker would jeopardize about 10 hours of transactions on the Bitcoin SV chain. – It is recommended that sincere node operators mark invalid lines initiated by a hacker as invalid.
Marking the split lines started by 51% of attackers as empty is necessary to prevent the attackers from accumulating financial gain, such as double spending. Usually the purpose of such events is to send the mined fake coin chains to stock exchanges, thus taking financial value out of thin air.
In its update report, the Bitcoin Association mentioned that the hacker attacks were 51% unsuccessful, while advising people on the network to make sure their nodes are simply communicating with the backed chain by sincere miners. In its report, the Bitcoin Association mentioned that all relevant stakeholders, including the Bitcoin SV infrastructure team, will continue to monitor the network to avoid further attacks.
Speaking with Crypto PumpNews, Steve Shadders, director of innovation for bitcoin designer SV nChain, mentioned that the two stakeholders are taking “a series of preventive and reactive measures” to avoid further attacks.
“Together with the Bitcoin Association team, we also worked with exchanges, miners and ecosystem companies to quickly invalidate a fraudulent chain containing illegal double spending using the invalidateblock command, an RPC code introduced in Bitcoin in 2014 and still part of the code. base for BTC and BCH.
Shadders said that the move nullified the aggressor’s efforts, allowing sincere people to channel their hashing power into the right channel. Shadders also mentioned that the attack actually provided more hashing power to the Bitcoin SV network to “protect the network.” Indeed, information from BitIn foCharts shows an increase in the hash rate of Bitcoin SV during the period from August 3 to 4, while the hash power of the network increased by almost 15%.
Three attacks in so many months
The fact that there were 3 attacks in 3 months, each using comparable methods, actually raised the question of whether the program exists compared to Bitcoin SV. Between June 24 and July 9, Bitcoin SV underwent 4 different 51% attack attempts that resulted in the sending of double spending coins to the Bitmart crypto exchange.
In July, Crypto PumpNews reported that Bitmark was seeking a restraining order from a New York judge to prevent the hackers responsible for the 51% attack on Bitcoin SV from double-spending their coins. At the time of this writing, it is unclear if an August attacker has the ability to send duplicates of spent BSVs to any exchange.
In a note sent by Crypto PumpNews, the Bitcoin Association clarified that the presence of double spending trades during the June and July attacks did not have disruptive results for Bitcoin SV users, including:
“It is possible that the attacker conducted his own transactions twice. No losses and no one stole anything.
The attacks on June 24 and July 1 reportedly went unnoticed, and exams began immediately after the July 6 attack. At the time, some exchanges, including Huobi, briefly suspended deposit and withdrawal services for BSV, prompting false assumptions that trading platforms were moving to remove the coin from quotation.
Commenting on the likelihood that the August attacks are related to previous events, Shadders told Crypto PumpNews: “For now, although we have no definitive proof that the same attacker is responsible for these recent attacks. And previous attempts in June and July, the similarity of the attack vector and methodology would indicate that this is likely to be the same attacker again. “
The fair difference between the two rounds of attacks is that the June and July exploits used the alias “Zulupool” – not associated with the actual network miner of the same name Hathor – while the August hacker was leaked for the Taal mining pool. Indeed, the aggressor is believed to have been disguised as Zulupool since June and July, and was also linked to the block reorganization used against Bitcoin ABC in March.
Given the alleged link between all of the attacks, Shadders told Crypto PumpNews that lawsuits are pending, citing:
“The Bitcoin Association and its legal representatives are actively engaging with law enforcement in their respective jurisdictions – a process that the Bitcoin SV infrastructure team continually maintains by collecting and collating all forensic evidence left behind by the attacker.”
Vulnerable PoW networks
PoW networks with significantly lower hash rates are susceptible to 51% attacks, since the hash power required to requisition a network only costs a few thousand dollars. In some cases, a few hundred dollars of hash power leased from NiceHash is enough to set up a blockchain reorganization on some PoW chains.
According to Crypto 51 – a platform that tracks the theoretical costs of a 51% attack on PoW chains – the hourly lease of the hash power required to attack the XNUMX% on Bitcoin SV costs about $ 5200 51.
Ethereum Classic, another PoW network, has also experienced multiple 51% attacks in 2019 and 2020. In one case, an attacker allegedly pulled over $ 5 million from the network by investing $ 192,000 in hash power to carry out the attack. However, it should be borne in mind that while such attacks remain possible, network stars can take steps to mitigate the vulnerability.
Relative: If you have a Bitcoin miner, activate it
Indeed, in the absence of Bitcoin’s outstanding network performance and massive hashing power, other PoW chains require the development of secondary security procedures to detect destructive blockchain reorganizations. To counter variations in hash rate, the total hash power of the Bitcoin network is currently over 320 times that of Bitcoin SV.
Crypto exchanges also require increased network verification requirements for coins whose chains do not have sufficient hash power. Most of the 51% of attackers seek to double their trades across exchanges by exchanging their fake coins for real funds held on trading platforms, usually on behalf of their users.
Thus, even if the blockchain ultimately fights the attack, a hacker can siphon off value in use by exchanging their counterfeit coins on exchanges that cease to function in order to pass the minimum required verification procedures.
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