Mysterious Miner Takes Control of More Than 50% of Mining Power
Bitcoin Cash also known as BCH, is a controversial cryptocurrency to some. The discussion regarding block size and blockchain congestion caused the notorious 2017 Bitcoin fork. Bitcoin Cash increased it's block size limit to 8mb, while Bitcoin is making use of the Lightening Network as a solution.
Bitcoin Cash later went through another fork on November 2018 in which Bitcoin SV was created as a result. Currently Bitcoin Cash is #4 on Coinmarketcap and is trading at $252, making it one of the more popular alt-coins.
It seems that not all is well in the world of Bitcoin Cash however, reports of an alleged 51% attack are unfolding.
Bitcoin Cash Under Attack?
As Litecoin founder Charlie Lee once said in a tweet; "If a crypto can't be 51% attacked, it is permissioned and centralized." Essentially nearly every cryptocurrency is susceptible to this sort of attack. These attacks usually focus on lesser known cryptocurrencies due to less active miners, such as with Ethereum Classic's hack in January.
It appears that a mysterious miner has taken control of more than 50% of Bitcoin Cash's hash power. This has caused reports of major issues with BCH's blockchain. Some have reported transaction times of hours and orphaned blocks.
There appear to be some problems with BCH mining, perhaps related to the difficulty re-targeting algorithm. It also appears one entity is now in effective control of mining.â Andreas â® ð â â ð ð¡ ð¹ ð ð© (@aantonop) October 27, 2019
I'm curious to learn what is going on here. Anyone know more? https://t.co/6la25oM8lx
The miner might have exploited a security issue within the Difficulty Adjustment Algorithm for mining blocks. Some have reported that it is insecure to currently send or receive Bitcoin Cash as a result.
Can Bitcoin Cash Rebound?
As with the Ethereum Classic hack in January, it appears that Bitcoin Cash might need to under-go a fork as a result. By forking Bitcoin Cash, the network security could be returned.
Unlike with Ethereum Classic, this attacker does not appear to have money on his mind. So far, no reports of stolen funds have been reported. The mystery hacker seems more intent on handicapping Bitcoin Cash's blockchain than stealing Bitcoin Cash.
This could lead to speculation that the attacker is motivated for possibly ideological reasons than financial ones.
Despite being detected initially over 12 hours ago, news of this attack has not taken a toll on BCH's price. It has only lost 2.51% in the past 24 hours.
This is not the first attack on Bitcoin Cash, and it might not be the last one, but so far BCH stands solid as #4 on Coinmarketcap. Should BCH fork and improve it's security protocols, this attack will likely be nothing but a bad memory.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado