Bitcoin Gold is hacked again. What is waiting for the coin?
Bitcoin Gold (BTG) is one of the most popular hard forks of the first cryptocurrency. The famous coin has long departed from its ancestor and continues to move in an independent direction. However, the technical imperfection of the crypt constantly reminds itself. The coin has already been hacked several times; serious attacks are periodically carried out on the network. One of these took place today. As a result of interference in the system, the attackers were able to withdraw more than $ 80,000 from a major Binance exchange. In this short article we will discuss everything that is known about the attack at the moment. We will also try to find out how the coin will move after hacking. So, without further ado, let’s get started.
What exactly happened?
The blame for this is 51% vulnerability. First, a little theory. Bitcoin Gold, like most working cryptocurrencies, is built on the Proof of Work algorithm. Such a technique is gradually becoming obsolete, a number of serious shortcomings in technical implementation are to blame. The fact is that the user who receives 51% of all computing power can individually change the course of the entire system. The principle is reminiscent of any joint-stock community where a leading person can also dispose of the company individually. In the crypto industry, such nuances are not acceptable. If there is a possibility for a potential hack, hackers will certainly take advantage of it.
A similar hacking has already occurred in May 2018. Then just a phenomenal theft took place. According to the exchange rate at that time, crackers received over $18 million or 388 thousand BTG coins.
All the same, but on a smaller scale, repeated tonight. In simple terms, a hacker conducted the same transaction twice. Thus, the system thought that it really had more than 50% of all BTG capacities at its disposal. Further, the attacker transferred money from a personal wallet to a Binance account. It is noteworthy that all confirmations were passed, so that there were no problems with the withdrawal of funds. The company recognized the theft only when 7167 coins were gone. According to the representatives of the system, the hacker was able to get $80,000 at his disposal. Agree, a good catch. The developers immediately recognized their own mistake and have already taken a number of measures.
How will Bitcoin Gold move now?
Immediately after the hack, BTG, together with Binance, redesigned the withdrawal system. Now, to receive money, you need to go through not 12 confirmation steps, but as many as 20. However, experts say that this will not solve all the problems of the coin. As long as the cryptocurrency works on PoW, it can be hacked. Even 20 checks will not stop experienced attackers. All the same, they will overcome this unreliable protection and receive money from ordinary users.
The only possible solution that BTG developers should come to is to change the working algorithm. Proof of Stake (PoS) lacks 51% vulnerability, it is not provided mathematically. Yes, changing the underlying mechanism is a complex process. But it is precisely such precedents that make us remember that we need to decide on changes. We are confident that soon Bitcoin Gold will plan the transition to PoS. In order not to miss this momentous event, follow all the news on our website. We publish only high-quality and interesting material. Thanks for attention. Good luck!
