- Privacy token Firo is undergoing a 51% PoW attack
- The developer’s team is working to make chain locks, which can take a week to deploy
- After the announcement, the hashrate of the token has dropped significantly
Firo, a privacy-oriented crypto-token, formerly known as Zcoin, has revealed via a tweet about its undergoing 51% attack. Indeed, 51% attack means any evil actor has somehow gained access to at least 51% of the hash rate of a blockchain-based PoW consensus algorithm. This means the attack on the project is something not because of a coding error but the nature of proof-of-work. The developer team Firo is fighting to tackle the issue as soon as possible. However, the team has also recommended that its users not make any transactions until the network gets to a normal state.
Firo is working to create chain locks
According to a most recent update regarding the attack shared by Firo, it is known that the project is working with exchanges and pools. Working together with exchanges and pools, the project plans to create chain locks that would have prevented such attacks. As per the latest update, such chain lock is being tested on the tesnet of the firm. However, the deployment of such chain locks can take over a week. For this reason, the team has already mentioned not to make any transactions until the network gets stable.
The situation of the token after the announcement
Following the data from the Wattomine, at press time, the hashrate of Firo was 1.8 Mh/s, whereas before, the hashrate was 68.85 Gh/s. Simultaneously, following the data of the CoinMarketCap, the price of the token has dropped by more than 15%. Like the price, the market cap is also down by more than 15% to $5,56,14,175. The token developers have also highlighted that the attack could have taken place at any time over the last four years, as it is impossible to place within a few weeks.
51% attack is nothing new in the industry
Such 51% attack, which is currently being suffered by the Firo, is typical in the crypto industry. Just last year, Ethereum Classic has also faced such an attack having a good experience of such an incident. On the other hand, there is a theoretical cost of a 51% attack on each network. Following the data from Crypto51, it is known that among the cryptocurrencies, the one hour attack cost on Bitcoin is $7,16,072.
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