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Bitcoin Fork, BTG, got 51% attack: Double spending of 7,167 BTG

The hard fork of Bitcoin called Bitcoin Gold has been attacked by 51% and caused the double spending of the 7,167 BTG of worth $72,000. The news of attack has not surprised the crypto community as it does not happen for the first time.

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James Lovejoy, the president of the MIT Bitcoin Club, unveiled the fact that the blockchain network underlying Bitcoin Gold has been disrupted by a 51% attack on Jan.23. It also comes on the scene that two attacks come into action one by one within a period of two days.

The above-mentioned control of double-spending happens when the hash rate of the coin is being controlled. When a person has control over the 51% hashing power, he will be able to manipulate the transactions and can reverse them as a result.

It is also worth mentioning that these kinds of attacks, generally, target the coins with proof-of-network algorithm. The recent double-spending phenomenon carried out in two phases: first with 1,900 BTG ($19,400) and the second is with 5,267 BTG ($54,000).

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Second Attack

The case is not surprising as it is on the record for the second time. The first case of 51% attack reported in 2018. That time, almost $18 million stolen as a result of 51% attack. Following the stolen cases, the network has adopted safety measures. But due to low capitalization value, the network becomes vulnerable to the 51% attacks.

As per report:

Based on Nicehash market price data for Zhash we estimate the cost of generating each reorg at around 0.2 BTC (~$1,700) and the attacker would have recouped around the same value in block rewards. Therefore, it is possible that the attacks were profitable if the double-spends succeeded at defrauding the attacker’s counterparty, or break-even if the double-spends were unsuccessful. This suggests that a confirmation requirement on the order of tens of blocks for BTG is still far too few to make the budget constraint to launch an attack significant.

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Davis Byrne

Davis Byrne got into the cryptocurrency world in 2013. He contributes technical chart-based price updates and price analysis on the world's leading digital currencies.

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