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White hackers from the largest pools

05/27/2019
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  • BitcoinCash
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An ambiguous event occurred in the world of cryptocurrency. Two mining pools jointly launched a 51% attack on blockchain Bitcoin Cash. And although its goals were relatively noble, this action can have very negative consequences.

History of noble hacking

When hardfork May 15, 2019 in the Bitcoin Cash network there were technical problems. As a result, a certain amount of "orphan coins" was formed, most of which were burned. However, now some unknown hacker managed to seize the rest of them, and transfer them to his own wallet.

In 2017, Bitcoin was separated from the Bitcoin blockchain as a result of hard forks Bitcoin Cash. Now its market capitalization has exceeded $ 7 billion, which allows the asset to occupy the 4th place on this indicator.

To prevent the hacker from withdrawing the funds, the BTC.top and BTC.com pools launched a 51% attack on Bitcoin Cash. As a result, they took possession of the stolen assets and transferred them to controlled wallets.

The effect of pools on the blockchain

Part of the cryptocurrency community is very unhappy with the actions taken. In their opinion, the administration of BTC.top and BTC.com initially knew about a possible vulnerability, and planned to take it in advance. However, an unknown competitor has managed to get ahead of them. Although his efforts did not lead to benefits, they split the community.

BTC.top and BTC.com jointly own approximately 43% of the total computing power of the network. However, cloud mining allows you to rent equipment and bring this figure to a critical 51%.

As a result of the attack, the two members of the network conspired, took the blockchain under complete control, and replaced the other units with their own. This is an unheard of action, which indicates the dominance of individual players in the market. It turns out that BTC.top and BTC.com can at any time bring down the network, or use it exclusively for their own purposes.

The consequences of the attack 51% for cryptocurrency

We have to admit that this event did not actually affect the BCH course, but it can have far-reaching consequences. Investors can be alerted by the fact that both pools are located in China. It turns out that the authorities of The Celestial Empire will be able to censor the blockchain at their discretion through their companies.

A trade war continues between the United States and China, where cryptocurrencies can become another bargaining chip.

In addition, the Chinese authorities are now considering the possibility of a complete ban on mining in the country. That is, virtually every cryptocurrency will lose from 60 to 80% of its computing power. The consequences of such a step are unpredictable. And there is no guarantee that the Chinese will not take any new aggressive steps. The fact that the 51% attack from BTC.top and BTC.com on Bitcoin Cash was “noble” in nature does not negate the fact that full censorship of the blockchain is possible. And it radically changes all the rules and ideas about cryptocurrency.

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