Coinbase discovered a deep reorganization of the Ethereum Classic blockchain that included double spending on January 5th. Interestingly though, they waited a couple of days to make this announcement when they found it on the 5th. Regardless, the exchange has suspended Ethereum Classic deposits and withdrawals. They also said they saw eight different reorganizations of the episodes that included double spending totaling about half a million USD from Ethereum Classic, which was spent twice.
Markets were not very favorable for this. We have seen how Ethereum Classic a bit plunged. Today, people do not like situations where the blockchain seems to be no longer very secure, and this is exactly what happened. Ethereum Classic was not safe.
What exactly happened:
There has been a 51% takeover of the Ethereum Classic blockchain, which is pretty devastating for Ethereum Classic. This is not called a 51% attack, but a chain reorganization. Reorganization of the chain is not so much an attempt to control the network, but a temporary use of low hash power in double spending before hash power returns to normal levels. Essentially, a chain reorganization is a situation where one miner or one pool has more resources than the rest of the network, and the dominant miner can then determine the network's new transaction history by choosing an arbitrary previous block from which to expand an alternate block. story.
A team from Ethereum Classic reported that they have a pretty good idea of who, on their suspicions, might be in control of the network, obviously, the ASIC manufacturer called Linzhi is currently testing 1400 Megahash ETHhash Mining Machines, which could easily see how they take over. network. They say that this is most likely an egoistic attack, not 51%. Ethereum Classic says that double costs were not found, but Coinbase has a different story. This is very problematic, if you only need one company to start testing your cars and easily dominate the network, this really indicates the low security level of Ethereum Classic.
Some even went so far as to put forward the theory that it is no coincidence that just 3 a day ago Okex opened up the possibility to short Ethereum Classic, and, in fact, someone could very easily leave, acquire this power or do it intentionally, regardless of In addition, Linji or someone else could very easily attack the Ethereum Classic, knowing that it would lower the price, so that their short orders would be executed, which would bring a lot of money. This seems like a possible theory when it comes to players for big money and how easy it is to attack some of these blockchains.
Difficult time for Ethereum Classic
It was a hard couple of months before the death of the ETC development team, one of the many teams working on Ethereum Classic, which caused a lot of the FUD that Ethereum Classic had died. Although we still have other teams, such as the ETC cooperative and the ETC laboratories working on the development of Ethereum Classic.
Another devastating situation for Ethereum Classic is that IOHK, the firm-developer of Cardano, announced it has ceased to support ETC Mantis. Charles Hoskinson came out and said that the team has numerous road map updates that can be implemented in Ethereum Classic, but it will take time, money and effort and therefore will be unstable in the current ecosystem. He said that the problem for him is that he spends his own money to create this, and they never had a source of income to build this client, so at the moment they have not done anything to participate in Ethereum Classic and in which a moment, like the CEO of a company, he must decide when and where they stop spending money, and when and where they stop allocating resources for something that does not respond.
What do you think about the future of Ethereum Classic? Tell us in the comments section below.