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Bitcoin Cash reportedly suffered a 51% attack, transactions reversed

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Bitcoin Cash reportedly suffered a 51% attack following its May 15 scheduled hardfork upgrade.

Following Bitcoin Cash’s hardfork upgrade, an attacker exploited a vulnerability in the update that added invalid transactions to the pool of unprocessed transactions (the Mempool). One source claims these were “poison” transactions that made it so miners were unable to participate in mining.

The exploit crippled the network for an hour and a half. The majority of miners were unable to participate in consensus, while those remaining were only able to mine mostly empty blocks.

Another source suggests that BTC.TOP opted to mine empty blocks to continue reaping mining rewards.

“Since most other miners were offline at the time due to the exploit, BTC.TOP controlled over half of the Bitcoin Cash network hash power, allowing them to determine which blocks were accepted by the network,” said Guy Swann, host of the Cryptoconomy Podcast.

During the chaos, BTC.TOP—potentially in collusion with another dominant mining pool, BTC.com—conducted a “non consensus re-org.” There are claims that the move constitutes a 51% attack on the Bitcoin Cash blockchain.

Source: BitMEX Research

The actions were said to have been motivated by the reclamation of previously unspendable BCH. A prior update on Bitcoin Cash made it so coins sent to particular addresses were unspendable. However, the May 16 hardfork changed that rule:

“This upgrade will make an exemption for these coins and return them to the previous situation, where they are spendable… any miner can take the coins,” stated the Bitcoin Cash GitHub.

An unknown miner then attempted to claim these previously unspendable coins, said Aaron van Wirdum, technical editor at Bitcoin Magazine.

“When an unknown miner claimed these coins, the BTC.com and BTC.TOP pools coordinated [a] 51%-attack to return coins to original owners.”

If verified, this could prove a major blow to Bitcoin Cash. “This basically kills any perception that Bitcoin Cash is ‘decentralized, censorship-resistant money,” said Swann.

Read on for the details on how 51% attacks are executed.

Filed Under: Bitcoin Cash, Hacks

Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

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Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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Binance.US is under investigation from SEC over trading affiliates: Report

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Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

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Boost Insurance unveils product covering against crypto theft from qualified custodians

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Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

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