Ethereum Classic (ETC), the smaller spinoff of Ethereum, remains to be reeling from the 51% attack that was carried out on its blockchain, ensuing within the theft of more than $1 million in ETC tokens and an nearly 10% erosion of the cryptocurrency’s worth.
Reactions to this assault have been pouring in from varied quarters, together with the momentary ban positioned on varied actions involving ETC by main cryptocurrency change platforms comparable to Coinbase and Kraken. Industry specialists and establishments have additionally weighed in on the matter, how this incident may have an effect on the general public notion and adoption of blockchains, and the way incidents like this may be prevented sooner or later.
In an e-mail dialog with Bloomberg, enterprise capitalist Kyle Samani claimed that the success of the assault on the blockchain demonstrates that the Ethereum Classic blockchain has primarily failed at certainly one of its most simple obligations as a decentralized cryptocurrency community.
I’m shocked that ETC will not be down 50 % or extra. The most possible clarification is that the largest holders retailer their property off-exchange, leaving them unable to switch them again and promote.
However, Charlie Lee — the founder and developer of Litecoin — appears to consider that with this assault, the Ethereum Classic blockchain is barely exhibiting one of many inherent traits of a blockchain. In a tweet earlier this week, Lee acknowledged that each decentralized cryptocurrency is prone to assaults of this nature, and any blockchain that demonstrates an immunity to this sort of assault is actually centralized and permissionised.
This is a thought-provoking commentary. 🤔
By definition, a decentralized cryptocurrency have to be prone to 51% assaults whether or not by hashrate, stake, and/or different permissionlessly-acquirable assets.
If a crypto cannot be 51% attacked, it’s permissioned and centralized. https://t.co/LRCVj5F0O1
— Charlie Lee [LTC⚡] (@SatoshiLite) January 8, 2019
“By definition, a decentralized cryptocurrency must be susceptible to 51% attacks whether by hash rate, stake, and/or other permissionlessly-acquirable resources,” the Litecoin creator wrote.
Every PoW Crypto is [Technically] Susceptible to 51% Attack
Lee’s sentiment was shared by Donald McIntyre, a member of the ETCDEV improvement staff, which was shut down in December 2018 over lack of funding within the wake of the downturn within the crypto market. In a blog post printed on Medium on January 8, McIntyre wrote:
Bear in thoughts that the present assaults ETC suffered will not be a operate of flawed inner design or a ‘hack’ to the system. It was a double-spend mining assault and a breach of safety which is a proper assumption in its design, which is susceptible to 51% assaults, as in another proof of labor blockchain, together with Bitcoin.
In the submit, McIntyre additional claimed that the blockchain may very well be shielded from assaults like this sooner or later by way of a change within the mining algorithm. At press time, ETC is ranked the 18th largest cryptocurrency by market capitalization and is trading at $5.04.
Charlie Lee Image from Slush 2018/YouTube