Bitcoin Ecosystem Rallies to Repel Doomed Re-Org Attacks
The block re-organization attack on the Bitcoin SV network continues but appears to be under control.
The statement confirms that the attacks against the Bitcoin SV network—which started in early July—have resumed this week and are perpetrated “by a malicious actor attempting to illegally double-spend BSV coins.”
The attacks work like this: a miner accumulates hash power and creates a chain of competing BSV blocks in secret, which contain transactions written to benefit the attacker, such as by double-spending BSV by appearing to deposit it into an exchange wallet.
In general, when two versions of the same blocks are mined, the longest chain is the one accepted by the system. Therefore, if an attacker can collect enough hash power, they can create a chain at a faster rate than their honest counterparts which will also make it the longest.
There is a risk that attackers may be able successfully deposit BSV from the attack with an exchange and then trade those for legitimate assets before the exchange is able to confirm the deposit.
There does not yet appear to be any evidence that individual users have suffered any loss as a result of the attacks.
Bitcoin Association has sent a strong message that the attackers will be brought to justice, although it was not yet clear who is behind the attack at this time.
- Aaron Goldstein, Gambling911.com
