The Ethereum Classic faced two massive attacks this week after a hacker reorganized nearly 4,000 blocks in its blockchain causing Ethermine to disable ETC pool payouts on Thursday.
An increasing attack on Ethereum Classic this week had put a big question mark on the networks’ security. Regarded as the 51% attack, it is the most dangerous, as Decrypt reports, assault a blockchain could encounter. An unknown network or a hacker aims to snatch 51% or more of the network’s hash power that may permit the attacker to have total control of the entire blockchain. This may also allow other networks to override, cancel transactions, and spend coins several times making sure it is impossible to trace. In an article published by Crypto51, Ethereum Classic, along with the other 45 cryptocurrencies, are most vulnerable to attacks that a rented hash power from NiceHash.
The first attack happened between July 29 to August 01, when an unknown entity broke into the network by reorganizing its blockchain using a self-developed malicious block to replace the legit ones. This caused the hacker to snatched approximately 800,000 ETC, apparently equivalent to $5.6 million. The hacker took over the hash power by a paid out of 17.5 BTC or $204,000, as released by Bitquery. Coindesk reported that the attacker sent money to their wallet address via private transactions and then established transactions into the blocks they were mining.
In this week’s attack, no final account has been released as to the total monetary value that was compromised, however, the attacker most likely earned $93,760 from block rewards alone as Ethereum Classic’s per block reward is at $23.44.
Vitalik Buterin, the Ethereum co-founder, suggested that ETC developers should just switch to an alternative consensus mechanism that relies on users staking their coins to maintain the network and not on raw computing power used in ETC’s current proof-of-work algorithms.
ETC should just switch to proof of stake. Even given its risk-averse culture, at this point making the jump seems lower-risk than not making it.— vitalik.eth (@VitalikButerin) August 6, 2020
Developers have encouraged ETC’s node operators to switch to Besu or Core-geth implementations as soon as possible. Currently, ETC is trading for $7.05 despite the challenges it suffers in its network.