Ethereum Classic Labs in collaboration with ChainSafe and OpenRelay

2 96

Ethereum Classic was hijacked 3 times in 2020, so Ethereum Classic Labs which manages the Ethereum Classic blockchain finally decided to work with ChainSafe and OpenRelay. They hope that 51 percent attacks will no longer happen.

“OpenRelay and ChainSafe both know Ethereum Classic, through this partnership we will have the most brilliant minds in blockchain, especially dealing with the problem of 51 percent attacks. There will be improvements to the Proof-of-Work system in Ethereum Classic, ” said James Wu, Founder and Leader of Ethereum Classic Labs, through his official Medium account, Wednesday (16 September 2020).

It states that OpenRelay will help Ethereum Classic to develop simulations and practical models for the proposed features, build testnet infrastructure, and design and deploy testnet tests.

Meanwhile ChainSafe will be working on a review of many security proposals to keep the network secure.

The attacks and hijacking of the Ethereum Classic blockchain have increasingly proven that blockchain technology is not as perfect and safe as people think. That advantage is very relative to the technology carried by each blockchain.

In this case Ethereum Classic, it has been hacked 3 times this year, consecutively, using the 51 percent attack technique.

The last hijacking took place on Saturday, August 29, 2020. About 7 thousand blocks were “reorganized”, according to Bitfly.

One of the big communities behind Ethereum Classic, ETC Labs, still hasn't implemented its strategy to protect the network from these attacks by stabilizing the dropping hashrate. It is not certain how much ETC has been successfully double-spent.

Previously, piracy through the 51 percent attack on the blockchain “fragment” of the Ethereum blockchain (ETH) occurred in late July and early August 2020. In the attack, the perpetrator was estimated to have managed to double-spend as much as 800 thousand ETC (equivalent to US $ 5.6 million, IDR81 billion). Meanwhile, the attack cost was equivalent to 17.5 BTC (US $ 204,000, IDR 2.9 billion).

The attack on Saturday, reported by Coindesk, Stevan Lohja Technology Coordinator of ETC Labs said he found the attack occurred just a day after the Ethereum Core developer meeting regarding "aggressive innovation" for Proof-of-Work.

"We have identified the attack and are working with parties to test and evaluate a solution as quickly as possible," said another proponent, ETC Cooperative.

After the first two attacks (late July and early August 2020), the OKEx crypto-asset exchange is considering deleting the crypto asset on its platform, due to a lack of network security.

Coinbase has also taken swift action by extending deposit and withdrawal confirmation times for ETC to around two weeks.

Following the latest attack, the FTX derivatives exchange will reconsider its ETC futures contract. They think the Ethereum Classic blockchain insecurity has little impact on the futures product.

Long before the latest attack, Ethereum Classic had a similar fate on January 5, 2019. At that time the hacker managed to carry out eleven blockchain chain reorganizations and double-spend of 88,500 ETC worth US $ 400 thousand. In response to the attack, the price of ETC plummeted and the crypto-related service was discontinued.

The problem of reorganization on the blockchain using the 51 percent attack technique raises the issue of crypto vulnerabilities that have a small-scale proof-of-work network, making them more vulnerable to attack than large blockchains such as Bitcoin.

As of August 30, 2020, based on data from Crypto51, the chance for the Bitcoin blockchain to be attacked and hijacked using the 51 percent attack method is only 1 percent with an hourly fee of US $ 564,452. Attacks must also be carried out in a massive, coordinated, and structured manner.

Costs and opportunities for attacking a number of blockchain technologies.

The working principle of NiceHash is to carry out 51 percent attacks against the blockchain. Meanwhile, attacking Ethereum Classic is much cheaper, which is IDR 100 million per hour. The chance of attack reaches 346 percent. The amount is based on leasing network computing data using NiceHash.


$ 5.71
$ 5.71 from @TheRandomRewarder
Sponsors of Alther


Amazing article ...a great and more powerful step great

$ 0.00
3 years ago