Bitcoin Gold counters double spend attack
A latest update has been released by the team accountable to develop Bitcoin Gold. This update is published after a week of the attack that ranged 51%. The double spend attack was orchestrated and conducted to get all the funds stolen from the crypto exchanges. Bitcoin Gold permits bitcoin mining with the help of GPU.
As per the new confirmed update released on Thursday, the hashrate of the network is maximally enjoyed by the attacker. Herein, the attacker controlled and manipulated the blockchain and led to a reversal of the transaction.
The strategy employed by the attacker is manifold. In the first step, at different cryptocurrency exchanges the attacker visited for deposits. Secondly, bitcoins and other cryptocurrencies are traded and finally, the funds are withdrawn. The next step involves the attacker to utilise its strong computing knowledge compelling other network segments for accepting falsified blocks. This led to the reversal of the initial deposits, thereby, losing the funds from the wallets controlled by the exchange.
With this, the blame game started where the developers of the project held the mining algorithm of bitcoin gold, Equihash, responsible. Other cryptocurrencies utilise this algorithm which makes the pool of hashpower more readily available than individual hashpower of bitcoin gold network.
Meanwhile, Bitcoin Gold is preparing to opt for an updated and advanced algorithm. Prior to this decision Bitmain, the bitcoin miner maker made an announcement to accept preorders. These preorders were regarding the first Equihash ASIC miner. Developers conceive that shifting to this advanced form of algorithm can make the network “dramatically safer” than the present times, thereby, securing the future.
The developers are of the opinion to hastily distribute this new algorithm, stating, “We’ve been working at an incredible pace the past days to put the plan and pieces together, and we expect to upgrade our mainnet approximately seven days after the necessary software is up and running on our testnet.”
They concluded by commenting, “While it would be better to give all our partners more than seven days to test and deploy to avoid disruption, these attacks have already forced disruption on us all, so we feel it’s best to get the upgrade completed as soon as we possibly can,” they concluded.
However, it is expected theoretically that the attacker may have looted a fund of more than $18 million. This is only feasible if each of these transactions results in successful endeavours.
(Image source: Shutterstock)
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