News Ethereum Classic trading frozen due to double spend drama...

Ethereum Classic trading frozen due to double spend drama – FinTech Futures

-

- Advertisment -

Coinbase has detected a deep chain reorganisation of the Ethereum Classic blockchain that included a double spend.

To protect customer funds, the firm has paused interactions with ETC. Subsequent to this event, it detected eight additional reorganisations that included double spends, totalling 88,500 ETC ($460,000).

The situation is fluid

The situation is fluid

The situation is fluid as subsequent to this event, the firm has found 12 additional reorganisations that included double spends, totalling 219,500 ETC ($1.1 million).

In a series of updates, Mark Nesbitt, security engineer at Coinbase, is keeping people informed.

Nesbitt notes that the honesty of more than half of miners is a “core requirement” for the security of Bitcoin and any proof-of-work cryptocurrencies based on Bitcoin.

Honest action, in this context, means following the behaviour described in Satoshi Nakamoto’s whitepaper, “Bitcoin: A Peer-to-Peer Electronic Cash System”.

This is sometimes described as a “security risk” or “attack vector”, but is more accurately described as a known limitation to the proof-of-work model.

Failure to meet this requirement breaks several core guarantees of the Bitcoin protocol, including the irreversibility of transactions. Nesbitt says many other cryptocurrencies, such as Ethereum Classic, have also adopted proof-of-work mining.

If a single miner has more resources than the entirety of the rest of the network, this miner could pick an arbitrary previous block from which to extend an alternative block history, eventually outpacing the block history produced by the rest of the network and defining a new canonical transaction history.

This is called a “chain reorganisation” or “reorg” for short. And Coinbase has found it out and stopped ETC trading because it observed repeated deep reorganisations.

In terms of the next steps, the Coinbase team is currently evaluating the safety of re-enabling sends and receives of Ethereum Classic and will communicate to its customers what to expect regarding support for ETC.

source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Why could GLBrain become a great solution to receive support during the crisis?

To support smaller and medium-sized businesses during the ongoing crisis, GLBrain offers services cost-free for all Austrians....

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that allows users to buy and sell their Cryptocurrency in a...

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...
- Advertisement -Ethereum Classic trading frozen due to double spend drama – FinTech Futures

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

Must read

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that...
- Advertisement -Ethereum Classic trading frozen due to double spend drama – FinTech FuturesEthereum Classic trading frozen due to double spend drama – FinTech Futures

You might also likeRELATED
Recommended to you