Cryptocurrency news: Attackers steals $500,000 worth of the Ethereum Classic digital currency

As per the latest news published in Ars technical, few of the attackers have stolen nearly $500,000 worth of the Ethereum Classic digital currency by carrying out a compute-intensive hack that redrafted its blockchain, representatives with Coinbase, one of the foremost cryptocurrency exchanges.

Mark Nesbitt mentiooned in a blog post, that over here the attackers were allowable to reorganize the Ethereum blockchain, Coinbase safety engineer. From there, the attackers were able to dual spend about 88,500 ETC, since they were able to recuperate beforehand spent coins and transfer them to a new entity. As a result, the coins were successfully moved from the fair receivers to new units selected by the attackers.

Nesbitt wrote:

The function of mining is to add transactions to the universal, shared transaction history, known as the blockchain. This is done by producing blocks, which are bundles of transactions, and defining the canonical history of transactions as the longest chain of blocks. If a single miner has more resources than the entirety of the rest of the network, this miner could pick an arbitrary previous block from which to extend an alternative block history, eventually outpacing the block history produced by the rest of the network and defining a new canonical transaction history.

This is called a “chain reorganization,” or “reorg” for short. All reorgs have a “depth,” which is the number of blocks that were replaced, and a “length,” which is the number of new blocks that did the replacing. Recently, Coinbase deferred trading of ETC after noticing the attack in order to stop any dual spends from striking its customers. for their part ETC officials have been firm that dual spends are upsetting the coinage.

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