Hacking Continues: Now Bitcoin Gold Suffers from Double Spending Attack With Exchanges Losing As Much As $18 Million
Cryptocurrency networks appear to be on the target of some organized criminals these days. It was solely two days in the past when I reported that Japanese cryptocurrency Monacoin suffered from a selfish mining assault recently, and the day before today there was once the news of Verge suffering from a DDoS attack. However, the worst doesn’t seem to be over yet, as now information has damaged about a third principal altcoin that suffered from double spending attack. This brings the wide variety of cash suffering from cyberattacks inside this week to 3.
The altcoin we’re speakme about is Bitcoin Gold. With a market cap of $795 million as of now it’s 24th greatest cryptocurrency in the world. However, that sort of scale didn’t give up hackers from taking over 51% of its community for a double-spending attack. Let me inform you what took place in detail.
What’s a double spending attack?
Suppose you supply any one a hundred INR. He puts the the observe in his wallet and goes his way. You observe him, pick his pocket and walk away with the 100 INR note. Then you use that 100 INR note someplace else. That’s referred to as double spending – and in this complete scheme the loser is that first man or woman who took the 100 INR from you.
In world of cryptocurrencies replicating this situation is hard due to the fact archives of all transactions are stored on blockchain, from the place altering them is extremely difficult. However, if someone has manage of more than half of the nodes in a blockchain, he can efficiently flip the desk in his desire to do a double spending attack!
What will happen in that case is that attacker will first of all take manage of more than 50% blockchain hashrate (a state of affairs known as 51% attack) and then alter the blockchain as he wishes to. He can reverse some of the transactions to steal the coins in any other case transferred to someone so he can use them somewhere else.
What took place with Bitcoin Gold?
Coming returned to this Bitcoin Gold case, what came about used to be that hacker(s) first of all took over more than 50% of Bitcoin Gold hashrate so he can alter the records of blockchain. Then he despatched some Bitcoin Gold (BTG) tokens to wallets of a few exchanges, but withdrew them rapidly to his wallet. Once the tokens had been again to his wallet, he reversed the preliminary deposit transactions to exchanges by means of altering the records of blockchain. In a nutshell, he effectively never sent some thing to those exchanges seeing that the savings transactions have been reversed, but the exchanges ended up sending him Bitcoins from their kitty due to the fact they didn’t have the manage over blockchain hashrate to reverse their transactions.
It has been published that a Bitcoin Gold address involved in assault acquired as an awful lot as 388,200 BTG due to the fact that May 16 If all of that got here from this attack, the attacker has reportedly duped the exchanges to a tune of $18.6 millio based on today’s valuations.