HomeAltcoinsCoinbase finds ETC double spend hack

Coinbase finds ETC double spend hack

Double Spend

Based on research conducted on January 5, Coinbase has found a flaw in the Ethereum Classic (ETC) blockchain. The flaw features a double spend loophole.

Details

Via a tweet today, Coinbase warned customers of the double spend problem and have halted ETC blockchain transactions for customer protection.

Coinbase revealed further details in its blog post on the subject. “Coinbase detected a deep chain reorganization of the Ethereum Classic blockchain that included a double spend,” the post noted.

“Subsequent to this event [detection and ETC fund movement pause], we detected 8 additional reorganizations that included double spends, totaling 88,500 ETC (~$460,000).”

Bitcoin and other Proof-of-Work assets’ security and effectiveness depends on mining honesty and power. If someone has sufficient resources, they potentially can throw off the network’s honesty through “chain reorganization”.

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.”

Greater manipulation is possible if the miner also holds a sufficient amount of the associated coins, in addition to the above-mentioned mining power.

Coinbase will notify customers on ETC’s status and support after safety investigation has been completed.

Reactions

In a recent Tweet, Ethereum Classic said it has not tried to “hide or downplay” the situation and is looking into the situation further.

It’s of little surprise that the XRP community chimed in on the situation, commenting on Coinbase’ post in what appeared to be frustrations against Coinbase not having added XRP to its platform as of yet.

“No chance of a 51% attack on the XRP blockchain,” said one commenterAnother commenter noted, “Weird. This has never happened to #XRP.

One enthusiastic Twitter member expressed an interesting counter-argument to XRP fans’ comments, describing XRP as a security.

Previous ETC action

Last month, Crypto Insider reported on Ethereum Classic and its associated drama as one of its development teams shut down.

Last year, Crypto Insider also interviewed 2 key members of the ETC community: ETC Cooperative Director Anthony Lusardi and ETCDEV business development expert Donald McIntyre.

According to Coinmarketcap data, ETC is currently priced at $5.02 at the time of writing, down from $5.48 yesterday.

Written by

BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written many professional articles for numerous ICOs, news sites, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally.

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This is opinion and not investment advice in any way, Crypto Taco might have some participation in certain cryptocurrencies but this participation does not interfere with the Editorial content of CryptoInsider.com, we do not participate in trades based on content.