BitCoin Gold is going through a decline with another attack, known as, 51 percent attack on the cryptocurrency network in 2018 decrypted coins that are worth eighteen million dollars.
BitCoin Gold is Going Down
BitCoin Gold is a branch from the BitCoin network, which went through a virtual offence of 51 percent attack on its block-chain. This led to the double spending of over seven thousand tokens that value about 72,000 US Dollars. According to James Lovejoy, the President of MIT BitCoin Club, the digital currency and assets network has suffered two deep-rooted reorganizations that led to double spending.
During Lovejoy’s published analysis on GitHub about BitCoin Gold, it was also highlighted that the compromised blocks were decrypted while using the same address. “We note that at the time of the attack, on Binance deposits of BTG were credited to one’s account for trading after six confirmations, and were available for withdrawals after twelve confirmations,” he said. “A fourteen or fifteen block reorg would thus evade both of Binance’s escrow periods. Binance has since increased their withdrawal requirement for BTG to twenty confirmations.”
BitCoin Gold is a result of the hard-fork on BTC’s block-chain and was established in 2017, which took place a few months before the traditional digital currency reached its peak. The digital asset is regarded and based on the NiceHash algorithm, which permits users to mine cryptocurrencies using GPU.
Lovejoy Reports on the Situation
In the GitHub report on BitCoin Gold, Lovejoy states that there is a calculated estimated on the cost of creating each reorganization, at approximately 0.2 BTC; this would be able 1,700USD. This makes clear that the virtual attacker would have to gather around the same value in rewards.
“It is possible that the attacks were profitable if the double-spends succeeded at defrauding the attacker’s counterparty, or break-even if the double-spends were unsuccessful,” he states. “This suggests that a confirmation requirement on the order of tens of blocks for BTG is still far too few to make the budget constraint to launch an attack significant.”
This was not the first time that the digital currency suffered from a virtual attack; the previous one occurred in May 2018 and it was also a 51 percent attack. This was a direct result in a virtual robbery of eighteen million dollars worth in BitCoin Gold, through double spend.
A 51 percent attack is one of the most common virtual attacking techniques in the cryptocurrency industry, where the attacker uses block-chain.