Ethereum Classic Considers Network Rollback Following $5.6M Theft | NewsBTC

Ethereum Classic suffered a 51% attack last weekend, the second such attack in less than two years. Initial investigations at the time showed no evidence of double-spending.

Ethereum Classic (ETC) price drops after reports of a 51% attack. (Source:

However, almost a week on, further investigations have revealed that the attacker managed to double-spend 807,206 ETC ($5.6 million) over a two day period.

How To Get Free Crypto  
14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

According to data analysis by Bitquery, the attacker inserted 11 transactions into the re-organized chain. They also noted that the attacker used just 17.5 BTC ($192k) to acquire the hashing power needed to split the chain.


Lightning Strikes Twice

This is not the first time that Ethereum Classic has been attacked. Back in January 2019, attackers performed a 51% attack to double-spend 219,500 ETC ($1.1 million).

The scale of the weekend theft is much greater than the previous attack. This leads many to question the viability of the project going forward.

An article posted in May 2018 titled, “The Realistic Lucrative Case of Ethereum Classic attack — Today,” examined the cost to 51% attack the Ethereum Classic network.

Coinbase Banner  

To come to an estimate, the author used the formula:

Total Network Hashrate / Efficient Miner Hashrate = Miner Units needed
Miner Units needed * Miner Unit Cost + Electricity = 51% Attack cost

The network hashrate averaged 7000 GH/s in 2018, while the miner hashrate for an Antminer E3 was 0.18 GH/s.

Therefore 38,888 Antminer E3s were needed, priced at $2,150 each, plus $150k per day for electricity, equating to an estimated cost to attack the ETC network of $85 million.

Since 2018, hashrate on the Ethereum Classic network has dropped substantially. At present, it’s around the 4000 GH/s mark.


In addition, miners have become much more efficient in recent times, with Bitmain’s Antminer S19 Pro able to hash 110 TH/s.

Decreasing network hashrate and increasing miner efficiency meant Ethereum Classic was ripe for attack.

Possible Ethereum Classic Rollback in the Works

Recovering from this will be difficult as security is the foundation of any serious blockchain.

At the same time, immutability should mean what’s done is done.

However, Binance CEO, Changpeng Zhao (CZ) today tweeted that he had received an alert that Ethereum Classic are attempting a network rollback to reverse the attack.

FreeBitcoin Banner  

Ethereum Classic came about due to a community split on how to deal with a $50 million theft from a developer app on the Ethereum blockchain.

Some wanted to roll the network back to return the Ether to the rightful owners, others took the view that one of the primary tenets of cryptocurrency is irreversibility.

In 2016, Ethereum underwent a hard fork to modify the code and revert the hack. Whereas Ethereum Classic carried on as it was.

If CZ’s alert proves accurate then it would be somewhat ironic that Ethereum Classic developers chose to roll the network back.

Either way, core developers need to consider long term strategies to defend the network.

Otherwise, it won’t be long before we hear about a third attack.

Go to Source
Author: Samuel Wan

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.