- Terry Culver, CEO of ETC labs announced that the future of ETC is still a vibrant one.
- A reorganization of 3693 blocks has occurred which resulted in a loss of $5.8 million.
- Dave Jevans, CEO of CipherTrace said that this case highlights the critical role blockchain analytics plays in maintaining the stability of the virtual asset economy.
The crypto world recently witnessed a string of attacks on Ethereum Classic Network which resulted in approximately $5.8M being stolen. However, Terry Culver, CEO of ETC labs announced that the future of ETC is still a vibrant one. He further added that they are implementing solutions to ensure such attacks don’t take place.
The Attacks and Their Cause
Ethereum Classic (ETC) suffered the first 51% attack between July 31 and August 1. Initially, it wasn’t clear for the people and thought it might be some technical errors. Terry stated that during the attack, they are in regular contact with miners and exchanges to advise on what was happening. A reorganization of 3693 blocks has occurred which resulted in a loss of $5.8 million.
The second 51% attack took place on August 6 which resulted in a theft of approximately $1.7 million. Even though the attack lasted longer and inserted more than 4,000, the theft was less than the first one due to Ethereum classic coordination with exchanges. The method for both the attacks is identical and the attacker bought the hash power required from the same mining pool.
While the cause for the attack is due to the low hash rate of ETC, Terry believed that such attacks will occur frequently and often go unreported. He suggested everyone recognize this as a universal weakness and one must take proper steps if they are concerned about the security of their network. As transparency is one of their core values, the attacks on ETC are clearly visible to everyone. Dave Jevans, CEO of CipherTrace said that this case highlights the critical role blockchain analytics plays in maintaining the stability of the virtual asset economy.
Heading into Future
In spite of the attacks, Ethereum classic continues to spike in terms of trade volume and liquidity. Currently, Ethereum classic is determined to secure the network and protect the integrity of the community. They even planned to implement several solutions to address these attacks and to prevent further ones from happening.
Starting off with establishing a strong monitoring and rapid response systems which let Ethereum classic alert their users to prevent single miner dominance and possibly double spends. Ethereum classic Is actively developing technical implementations to reduce the chances of attacks. For this, they are researching a new mining algorithm.
Terry believed that good partnership with miners and mining pools will help them get prospects in their respective space, especially increasing the hash rate of ETC and encouraging honest mining. To look deeper into the attacks, they are collaborating with the law firm Kobre & Kim and CipherTrace.
Finally, Terry stated that Ethereum classic may be small but its vibrant and growing company. Moreover, intends on creating a diverse and inclusive community characterized by financial and data self-determination. It will continue to collaborate with other chains and communities as much as possible and make sure that the community fully reflects the values of social and inclusion.