Ethereum (ETH)News

Ethereum Classic Labs planning ‘Defensive Mining’ Strategy

There has been a sharp decline in Ethereum Classic’s hash rate since January and it is continuing downwards after two successful 51% attacks were made on the network earlier this month. Ethereum Classic Labs, which describes itself as ‘stewards’ of the blockchain, have taken this vulnerability into account and are now coming up with a detailed plan for protecting and revitalizing the fledgling network. The announcement was made on Wednesday via a blog post. The current hash rate of Ethereum Classic at 3.2 terahash per second has declined by 74% from first January.

In addition, it is a decline of 84% from its all-time high of 20.4 terahash per second, which it had achieved in later January. This downward trend has continued after two back-to-back 51% attacks were made on the network during the first week of this month. The first attack had been conducted on August 1st and it had been dismissed mistakenly as a malfunction in miner software. However, another 51% attack was launched five days later. More than 3,000 blocks were reorganized by both attacks on the Ethereum Classic chain. ETC labs have had to come up with ‘immediate attack prevention’ measures in light of these attacks.

These measures include the implementation of a ‘defensive mining’ strategy, which would be done with the cooperation of the mining pools and the miners. According to the post published by the company, one of the primary goals of this strategy is to keep the hash rate as consistent as possible. The post said that they were dedicated to protecting the ecosystem’s integrity. There were no details provided about the so-called defensive mining. CEO of Ethereum Classic Labs, Terry Culver said in an email that they were keeping the details of this strategy confidential for now.

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No matter how they implement the defensive mining strategy, it is apparent that protecting the Ethereum Classic ecosystem is nothing short of an uphill battle. After the attack on the OKEx exchange, it had announced that it was considering the idea of delisting the cryptocurrency completely. Likewise, the Coinbase exchange has also announced that they are extending the confirmation time for Ethereum Classic (ETC) transactions to almost two weeks. Furthermore, the previous director at F2Pool, a leading crypto mining company, Thomas Heller said that this defensive mining strategy will also have to compete with Ether mining profitability as well.

He said that the only angle that matters to miners is profitability. Thus, he said that it was important to know if Ethereum Classic has the funds that are needed for sustaining profitability associated with defensive mining. Heller said that miners would simply switch to mining Ether (ETC) if it turned out that it was more profitable than using defensive mining for Ethereum Classic. After the attacks on the network, the price of Ethereum Classic has barely seen any movement. At last check, it was trading at $6.83, which is almost 3% below the price on the day the second attack had occurred. It remains to be seen how things will turn out in the future.

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Bentley Kapoor (India)

Bentley is a cryptocurrency enthusiast and trader, his articles are news and platform review based. His writings are brought to you through his 10 years of experience in the cryptocurrency markets.

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