Coinbase freezes Ethereum Classic trading following attack – TechCrunch

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Coinbase is making ready to record quite a lot of new cash this yr, however its first main piece of motion in 2019 is to quickly pause one among its current portfolio. The trade mentioned it has stopped all buying and selling on Ethereum Basic — a cryptocurrency it added again in August — after it detected an assault on the cryptocurrency’s community.

Coinbase recognized “a deep chain reorganization” of the Ethereum Basic blockchain which primarily signifies that somebody controlling miners on the community had rewritten transaction historical past. Such tampering can permit what’s referred to as ‘double spending,’ which primarily invalidates previous transactions to change the route of cryptocurrency transfers — loads like stealing. Coinbase mentioned it discovered an additional eight reorganizations which, coupled with the bigger one, noticed round 88,500 RTC ($460,000) in double spends.

It’s being advised that the incident is a 51 p.c assault — primarily, anybody who controls over half of the mining energy has the flexibility to rewrite transaction historical past — however, as Coindesk notes, that is only one potential rationalization. Others may very well be that Coinbase’s ETC nodes had been ‘surrounded’ — a proof put ahead by Ethereum Basic advisor Cody Burns — whereas the official Ethereum Classic Twitter account suggested that highly effective new miners may very well be responsible. It namechecked Linzhi, however the agency’s issued a robust denial to Coindesk.

For now, the Ethereum Basic group is investigating whereas Coinbase mentioned it’s going to monitor the state of affairs. For now, any prospects who maintain ETC of their account with the trade are frozen till additional phrase. That’s not the one response. Different exchanges have moved to extend the variety of confirmations required to course of a transaction, which is one approach to keep away from falling foul of minority assaults.

Ethereum Basic was created in June 2016 following a significant hack on The DAO, a fundraising automobile for the mission. The Ethereum Basis created a brand new model of Ethereum — identified right now as Ethereum — that rescued the misplaced funds, however those that opposed continued on with the unique chain which was often called Ethereum Basic.

Be aware: The creator owns a small quantity of cryptocurrency. Sufficient to realize an understanding, not sufficient to alter a life.

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