Bitcoin Gold suffers a 51% attack again

Summary

In Jan 2020, the Bitcoin Gold (BTG) blockchain was hit by a 51% attack, resulting in a loss of over $70,000 worth of BTG. The attack lasted for two days, during which time the attackers were able to double-spend coins.

Attackers

It is still unclear who the attackers were, but it is believed that they rented computing power from cloud mining services to gain control of the BTG network. This highlights a major security flaw in the cryptocurrency system, as anyone can rent computing power and launch an attack.

Losses

The attackers were able to double-spend coins, resulting in a loss of over $70,000 worth of BTG. The attack also caused a loss of trust in the Bitcoin Gold network, leading to a significant drop in its value.

Timeline

• January 23, 2020: The attackers removed 14 blocks from the BTG network, replacing them with 13 blocks and double spending 1,900 BTG, worth around $19,000 at the time.
• January 24, 2020: The attackers removed 15 blocks from the network and issued another 16 blocks, which resulted in the double spending of 5,267 BTG, which was just over $53,000 at the time.
• January 24, 2020: Binance increased its BTG withdrawal requirement to 20 confirmations

Security Failure Causes

• Low hash rate of the Bitcoin Gold network: it is easier for attackers to gain control of the network by renting computing power.
• Lack of security awareness: Bitcoin Gold community didn’t pay enough attention to potential network vulnerabilities. In conclusion, the 51% attack on Bitcoin Gold highlights the need for improved security measures and higher hash rates to prevent such attacks in the cryptocurrency industry. While blockchain technology has the potential to revolutionize the financial system, it is important to address these vulnerabilities to ensure its long-term success.