Late night, the team behind Ethereum Classic tweeted the ongoing issues pertaining to the possible “chain reorganization” as well as double-spend attacks. Concurrently, they have asked the respective crypto exchanges as well as ETC mining pools to demand as many as 400 confirmations for deposits and withdrawals. The team also noted that as per their records, the ETC network is in normal operations.
The On-Going Chain Reorganization and Double-Spends Attack
Chain reorganization is a situation when a customer in blockchain architecture finds out a chain that is much larger in size. The large chain disregards the blocks previously processed by the client. The decentralized networks have a rule in which the long chain is always at the winning end. Various metrics, including the difficult ones, are used to define the longest chain.
Nearly 51% of attacks are based on the foundation of the longest chain. A miner with hash power is said to have the access to rewrite a blockchain as per their requirement. Using the power they can carry out any transaction. For instance, they can pay for goods and services as well as other cryptocurrencies. The can even go back to any transaction and delete it from the blockchain as if they never occurred.
The percentage of the attacks (51%) is extremely expensive, especially on the Bitcoin network. Nevertheless, Ethereum Classic claims to be on the safer side as it does not much pressure from the hashpower. As per ETCSTATS.net, at the time of writing the Ethereum Classic had only 8.8 terrahash. Bitcoin, on the other hand, had more than 39 million terrahash at the time of writing. The closest comparison to Ethereum was at 190 TH/s.
The numbers highlight the volume of hashpower that may be necessary to effect chain reorganization or a double spend attack. It is more likely less expensive to develop reorganization on the Ethereum Classic network or double spend a compared on some others. Anyway, it is still quite expensive on the nearly $600 million networks as compared to others.
Ethereum Classic Exchanges Notified
The ETC team has stressed that everything is normal. Nevertheless, the team in its follow-up tweet asked the mining pools and exchanges to demand around 400 confirmations. In the tweet, the company tagged OKEx specifically. OKEx is the exchange where most of the transaction takes place. The Ethereum Classic trading is comparatively quite evenly spread across exchanges.
Enhancing the required number of confirmation has the chances of reducing the likelihood of victimization. It requires more hashpower for each additional block that a wicked miner wishes to recreate or eliminate from the digital ledger. Excessive chaos causes a hard fork. Most of the network decided as which chain it will accept moving forward. Ethereum Classic comes from a hard fork surrounding an initial bug in Ethereum. Some Ethereum community members were led to disagree with the decision to hard fork as well as protect the original chain.