In recent days, Verge’s network has once again suffered a 51% attack that followed the same pattern as the one used in the previous hacking attack in early April.
This time, the attacker managed to master more than 50% of the processing power of two mining algorithms: scrypt, which was the algorithm compromised in the previous attack, and lyra2re.
According to reports on the Reddit social network, about 25 blocks per minute were created, with a profit of 18250 XVG. Approximately 50,000 blocks were mined in this way by the attacker. When the attack ended, the hacker managed to obtain 35 million XVG, which at the current price of $0.0398 is equivalent to almost 1.4 million dollars.
As one user of the bitcoiner community explains in relation to the March attack, in order to achieve mastery of the
network’s processing power, the hacker took advantage of two features of this blockchain: the use of five different algorithms and the difficulty adjustment protocol per algorithm, instead of a global one.
The attacker created blocks with a false timestamp to fool the protocol and drastically reduce the level of mining difficulty. Because it does not focus on all algorithms, it does not need to have 51% network processing power, but a much lower number. In addition, there are specialized ASIC teams for the scrypt algorithm, which makes it much easier to master the network.
By increasing the speed of block creation, miners using the other algorithms will only create orphan blocks that will not be recognized by the main chain.
Regarding this event, a developer from the main team called AkashiroNL commented that they are working on a patch to solve the problem. In addition, he added that a completely new code will soon be published.
Small update about the 51% attack today. Developer is working on a patch. But something more awsome to look forward to is we will have a complete new codebase soon!!#xvg #verge @Xvghodlgroup #Vergecurrency #wow pic.twitter.com/grEIiv1o1M
— AkashiroNL (@Akashiro_NL) May 22, 2018
Let’s remember that when it first happened, the developers announced that they would make a strong fork. However, this did not solve the problem, which has generated discontent in the community.