Shift (SHIFT) experiences a 51% attack in August 2016

Summary

Shift, a blockchain project focused on decentralized web hosting, was hit by a 51% attack in late August 2016. The attackers were able to take control of more than half of the network’s mining power, enabling them to reorganize the blockchain and carry out double-spending attacks.

Attackers

The identities of the attackers remain unknown.

Losses

The exact amount of losses in the Shift 51% attack is not clear.

Timeline

• August 27, 2016: The Shift network witnesses an unexpected surge in hash rate, indicating a possible attack.
• August 28, 2016: It becomes evident that the Shift network is under a 51% attack, with the attackers having control over the majority of the network’s mining power.

Security Failure Causes

• Centralization of Mining Power: The Shift network had a centralization of mining power, making it relatively easier for an attacker to gain control over the majority of the network’s hash rate.
• Low Network Hash Rate: As a smaller cryptocurrency, Shift had a low network hash rate, which made it vulnerable to 51% attacks. The attackers did not need an exorbitant amount of resources to gain control over the network.
• Insufficient Security Measures: At the time, Shift had not implemented sufficient security measures to protect against 51% attacks. The attack served as a catalyst for the team to review and enhance network security.