It took up to 24 hours before the Ethereum Classic (ETC) hack was discovered to be ongoing on January 5 2019. The hack allowed single users to control up to 60% of mining energy which ultimately created a longer Blockchain that gave these users an avenue to double spend. According to data collected by CoinMarketCap, Ethereum Classic (ETC) is the 18th-largest digital currency. This recent report has raised concerns within the crypto community, which is understandable. There’s concern that Bitcoin (BTC) may be next in line.
Ethereum Classic (ETC) Price Today – ETC / USD
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Experts Think ETC Is No More Immutable
According to the president of Blockchain at the Columbia University, Nir Kabessa, while it is a difficult move to hack bigger digital assets, attacks on the larger cryptos are not out of reach anymore. With the hash power securing the Ethereum Classic (ETC) and market cap of ETCs token supply now less than 1/20th of the Ethereum (ETH) main chain, it isn’t particularly surprising that the ETC token was successfully attacked by cyber criminals.
Ethereum Classic (ETC) value was actually supposed to be absolutely immutable. But it isn’t immutable anymore which might compromise the mission and alteration of the community’s definition of what immutability means. If the Bitcoin (BTC) and Ethereum (ETH) Blockchains are eventually 51% hacked, the distributed ledger community, in general, should seriously consider a re-evaluation of the security profile of the Proof-of-Work consensus algorithm. Overall, coordinating attacks against the larger, cornerstone networks is definitely going to much more difficult in all ramifications.
Blind to the Pitfalls of the Proof-of-work Consensus Algorithm
According to the co-founder of Qtum Jordan Earls, who is also the co-chairperson of the Smart Contracts Alliance, the latest 51% attack on the Ethereum Classic (ETC) software could see countless updates in the PoW (Proof-of-Work) consensus model. However, many networks are still blind to the pitfalls of the PoW model. This recent attack highlights the naivety and danger of using the PoW consensus system which has been regarded as the standard for the sector.
Earls believes that the (PoS) Proof of Stake model maintains freedom and censorship-resistance of the PoW (model), but with no risk of 51% attacks on Blockchains.
No Proof-of-Stake Hacks Yet
While many people have expressed their doubts over the security of the PoS consensus model, there have been no reports of 51% attacks on PoS networks at this point which says something. However, the Senior Market Analyst at eToro, Mati Greenspan, believes that the experts and crypto-centrists that are predicting the demise of Bitcoin (BTC) should not be believed or taken seriously. According to the market analyst, this recent 51% attack could actually reinforce the market trust.
The 51% attack is the most common attack in crypto. This can also be known as a reorganization to create a double spend or erase previous transactions to allow you to get your tokens back. According to Coinbase no, less than 15 reorganizations (some of which contained suspicious double spending activity amounting to the tune of $1.1 million) has been siphoned from the Ethereum Classic (ETC) network. This attack has ultimately brought up conversations on security issues and token monopoly particularly for the smaller digital currencies.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
