A serious crypto bug discovered a few weeks ago in the bitcoin code was successfully exploited in the blockchain of one of the less popular cryptocurrencies. As reported by CoinDesk, on September 26 anonymous miner produced over 235 million coins of a little-known digital currency Pigeoncoin with the total cost of $15,000.
This became possible since the inflation bug was fixed only in bitcoin before anyone could use it, and not in other cryptocurrencies existing on the basis of the initial code. The bug allows any hacker to generate an unlimited number of coins, despite the limit of emissions prescribed in the code.
Pigeoncoin or PGN is not a particularly noteworthy cryptocurrency. Nevertheless, the attack on Pigeoncoin demonstrates all potential hazards for the bitcoin blockchain. Currently, there are around 970 million Pigeoncoins in circulation. That is, the hacker used the bug to print additionally about a quarter of all available PGN. CryptoBridge, the only exchange supporting Pigeoncoin, temporarily suspended trading in digital currency while its developers were preparing a fix. It did not take long after the problem was discovered to create the solution, as the developers only needed to copy the code written earlier for BTC.
Crypto expert Scott Roberts believes that the main conclusion that can be drawn from the case with Pigeoncoin hacking is that the bug found in bitcoin code was as catastrophic as it seemed. Now that the bug has been fixed, users are wondering what the hacker is planning to do with mined PGN. It is most likely that to monetize his venture, the attacker has to exchange Pigeoncoins for another more popular asset.
Ingenious attackers may use bitcoin bug to print the additional amount of ‘free’ crypto coins. But why mining Pigeoncoin? Pigeoncoin is a new coin based on the X16S algorithm, which is similar to the X16R algorithm. The latter is unique in that it combines 16 different algorithms randomly selected based on the hash of the last block. Due to this, the order is always random, which makes it very difficult to create an ASIC (application-specific integrated circuit).
Pigeoncoin represents a fork of Ravencoin. The latter is a digital P2P network, the main and only task of which is to transfer assets from one user to another. The reason PGN was created lies in the fact that X16R switches to a new algorithm on each block. Consequently, with the appearance of a power supply, GPU is powered on after each new switching of the block. When working on the X16S algorithm, the power usage is smooth, just like with many other algorithms.
As of 6 November 2018, Pigeoncoin cryptocurrency has a capitalization of over 210,000 USD (or 32.68 BTC) and ranks the 1133rd in the ranking of cryptocurrencies by market capitalization.
In recent days, Pigeoncoin price has experienced such changes:
Bitcoin fork represents an updated version of the blockchain with new operating rules. It lies in the division of the chain into two independent branches, the amendments of the cryptocurrency code. The goal of creating a new fork is determined by the desire to improve the characteristics of an existing electronic coin, create a more effective product and, of course, earn money on it.
The forks of Bitcoin have emerged due to several reasons:
Since its release in 2009, BTC has experienced many divisions of the blockchain. The first attempts occurred back in 2013, but the resulting cryptocurrencies had a separate transaction history, and the forks themselves belonged to the ‘soft’ category. Successful separation (that is, hard fork) occurred only in 2017, which resulted in Bitcoin Cash appearance. This is the first hard fork of Bitcoin, which continues to develop.
Another rather easy but much more legit way to earn bitcoins – link shortening services. The use of short links on the Internet has long become commonplace, and it is not surprising that some users have decided to monetize this process. The most popular service for shortening links (as well as gaining profit through advertising) is 1ink.cc