Bitcoin Gold (BTG) Yet Again Suffer 51% Attack

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • Bitcoin gold, an offshoot of Bitcoin, undergoes another 51% attack swindle around 7,167 BTG.
  • The attack was reported in a Twitter post shared by the president of MIT bitcoin club, James Lovejoy.

The lesser-known fork of the original Bitcoin, Bitcoin gold yet again compromised today, utilizing superior computing power to counterfeit the currency’s ledger and swindle around $72000 through coinbase transactions.

The attack, which was reported in a Twitter post shared by the president of MIT bitcoin club, James Lovejoy, who first noticed double spending on bitcoin gold (BTG). 

https://twitter.com/metalicjames/status/1220855278851313669?s=20

This isn’t the first attack on Bitcoin gold in May 2018, and bitcoin gold undergoes its 1st 51% attack, which costs $18 million worth BTG double-spent from online exchanges. After suffering from 51% attack, bitcoin gold is delisted from exchanges stating that the currency is vulnerable to attacks and could cost enormously in the future.

The Second 51% Attack

Per the Github report, it was two deep reorgs detected on BTG between Thursday and Friday, and both contained double-spends. The details of double-spending mentioned here:

The First event traced on Thursday 23 Jan 2020 transaction time 18:01:32 where 14 blocks removed and 13 blocks added. In the transaction 1,900 BTG worth $19,000 were double-spent. 

As reported 1,900 BTG originally sent to GgmzUSgXrXpDxiY34bG6SxaDVi2rQ1zU8Q in with transaction Id: 3a17157994502a749a1827883a670d822f8ee95dae94064631770faeec1e8443 which was redirected to GNH5cUEg5LZZP5HfLgaLvTE9ApKAf76aBf with transaction Id: 6e05e8253b2ce7f1acf6f0684898e13141c0e9b893e1a5e44d215d8ebe4d28b4.

As quoted, the majority of coins were transferred from an output owned by the address GK6HuN964f3XFScY5CPGg1oZ1gFRq52nf5.

The second such double-spending encountered on Friday, 24 Jan 2020, at 00:24:08 where 15 blocks removed and 16 blocks added where 5,267 BTG worth $53,000 were double-spent.

The majority of the BTG coins were transferred from outputs owned by the address Gdc4ANNdqyGBadobzUDZNydBgDHAYdMeAb.

The Findings

James observed that both the attacker blocks were mined with address GWrW5dTZf5XwGWoJuqRKdzkzZFkwtWSqaP in the coinbase transaction.

He further added that at the time of the attack, BTG was credited in an account on Binance for trading after six confirmations. After 12 confirmation, it was available for withdrawal. Binance escrow periods evade fourteen or fifteen block reorg after Which binance has undoubtedly increased its withdrawal requirement for bitcoin gold to twenty confirmation. As per nicehash market price data for Zhash, the cost of generating each reorg was estimated at around 0.2 BTC around $1,700. The attacks were profitable for attackers if they successfully double-spends.

The event certainly brings a lot of buzz in the crypto-verse, and also it enlightens the unsafe side of cryptocurrencies and blockchains. The security of the blockchain is still the foremost concern.

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