Attack 51%, which is so much talked about in the cryptocurrency world has finally happened. The victim was the bitcoin Verge, which is in the top 25 of cryptocurrency by capitalization.
Attack 51% means that the attacker can find a power greater than all the rest of the network, a kind of “controlling interest” of generating capacity. The attacker can do with a network of almost anything. What happened with the Verge (XVG).
About the attack was first reported on 4 April. After this was reported on the forum bitcointalk.org the attack stopped, and on 5 April resumed for some time.
In the table above is a list of new blocks on the network, their numbers are shown on the left. The amount 1,560 “(XVG)” is the reward for a block that should receive the miners. The current price of the Verge (XVG) is about 0.05 US dollar, i.e. one block, the miner gets about 78$. It’s all more or less normal.
However, the column that specifies the time (timestamp) indicates that in a network there is something wrong. Please note that two time stamps. The difference between them is approximately 90 minutes. The correct timestamp is later, and earlier – is fake, that is fake attacking.
The attacker could afford it, as it has the most power in the network. Thus the network Verge “believes” that these blocks are real. The attackers used a few flaws in the hashing Verge (XVG) and can manage time to create units as you like.
For all these new units remuneration was received in full in the amount of 1,560 XVG at the rate of about 1 per second, rather than the more usual 1 in 30 seconds.
For one block, the attacker receives approximately USD 78 and thus “earns” about 280.800 USD per hour. In any case, the earnings of the attackers is estimated in millions XVG.
Now the challenge for attackers is to get rid of received XVG most profitable way. They can’t sell all the coins at once without having to the price of the cryptocurrency to plummet. At the same time they need to do it fast enough, yet this news has not spread among investors because after that the price will fall again.
The most profitable strategy for the attackers and the only real chance to really capitalize on this is to hope that the community and investors will not give this incident is enough value. Already trying to do the developers.
We had a small hash attack that lasted about 3 hours earlier this morning, it’s been cleared up now. We will be implementing even more redundancy checks for things of this nature in the future! $XVG #vergefam— vergecurrency (@vergecurrency) April 4, 2018
What will happen to Verge (XVG)?
No doubt, it was a successful attack 51%, which technically makes this coin functionally useless. But at the same time, the Verge (XVG) is in the top 25 cryptocurrencies, has a serious story (like crypto-currencies) and a strong community, so that the price almost certainly will not fall to zero.
Moreover, the developers have stated that they are preparing a special patch which I hope to fix the problem, but at the same time, do not plan fork, which means that intruders will be all their money. But there is no guarantee that the attack won’t happen the developers, at the moment, not provided.
In addition to this, the Verge (XVG) has announced some serious partnership, details of which will be announced April 16. If this attack does not affect the agreement, and the partnership will be really serious, this cryptocurrency has all the chances to stay afloat. Moreover, it has already started to attract the attention of mainstream media such as Forbes.