Two Miners Have Reportedly Executed A 51% Attack on Bitcoin Cash Blockchain

by | May 25, 2019 | Blockchain, Cryptocurrency, Cryptocurrency News

Miners | Crytocurrency | Attack | Bitcoin Cash | BTC | Blockchain

A series of tweets from Guy Swann, the host of Cryptoconomy Podcast on May 24, claims that two miners have managed to execute a 51% attack on the bitcoin cash (BCH) blockchain.

A 51% attack is when the hacker can control a majority of mining power on the Proof-of-Work blockchain network, i.e. the majority block verifier could prevent other users from mining and reverse transactions. Though many may assume that such an attack is with malicious intent, this scenario seems to be different.

Reportedly, this 51% attack occurred when two mining pools were attempting to prevent an unidentified party from taking some coins that were essentially “up for grabs,” due to a code update.

As per Swann the two miners with majority control of the network are BTC.top and BTC.com. The duo’s attack was to stop that unknown miner from taking coins that were sent to an “anyone can spend” address following the original hard fork in May 2017.  As per Swann’s tweets:

“When the unknown miner tried to take the coins themselves, http://BTC.TOP  & http://BTC.COM saw & immediately decided to re-org & remove these [transactions] TXs, in favor of their own TXs, spending the same P2SH coins, + many others … So just 2 miners, in secret & w/ no trouble, took it upon themselves to remove 2 blocks w/ another’s TXs, & replace with their own.”

The Tweets 

Often 51% attacks are considered as an undesirable and unprofitable option to take funds as it requires a massive amount of computing power. Moreover, once a  network is considered compromised, users would ostensibly flee. According to Coin.Dance statistics, BTC.top and BTC.com control 43% of the bitcoin cash mining pool.

In January this year, the Ethereum Classic (ETC) blockchain experienced a 51% attack. Gate.io, the crypto exchange reportedly after the attack that the attacker had reversed four transactions, resulting in a loss of 54,200 ETC. The exchange promised to compensate the affected users and further advised other trading platforms to block transactions initiated by the attacker’s address.

Read more: Swiss Watchmaker Franck Muller Launches ‘Functional’ Bitcoin Timepiece

Image source – Pixabay.com

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