Cryptocurrency is supposed to guarantee that coins once used are not used again. Every transaction made with Bitcoin is recorded in a database that can be accessed by anyone. The database is called the blockchain.
However, there seems to be a way to go around it. On Monday, cryptocurrency trading hub Coinbase said that it is not willing to facilitate trades in Ethereum Classic because the exchange had determined the cryptocurrency had fallen victim to an attack that let someone spend the same coins twice.
The attack highlights a problem that blockchain experts have known ever since the beginning of cryptocurrencies. It is said that virtual coins are secure only if the users are honest and record them spends in the blockchain. It is also a big blow for Ethereum Classica, which can no longer be traded on Coinbase, a major exchange for all kinds of Cryptocurrencies.
According to experts, the attackers could spend this much because of what could be called 51% attack. To do this, attackers took control of more than half of the processing power that computes and stores the Ethereum Classic blockchain. This let the attackers create alternative transactions for some coins, thus essentially spending them twice.
Ethereum, however, on Twitter said that it did detect a problem but did not think it was a 51% attack and did not see any signs of double spending coins. A tweet said, “Coinbase allegedly detected double spends but unfortunately did not connect with ETC personnel regarding the attack.” The owners of the account did not immediately respond. The coin that attackers spent twice was worth about $460,000, said, experts. He further added that the potential for an attack like this one is a problem faced by all cryptocurrencies. This does not mean Ethereum Classic is the only vulnerable.
One year ago, on this very day, the Crypto bubble reached its highest before the inevitable dip that occurred throughout the remainder of 2018 and that lingered into the new year.