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from the Oops,-the-honest-people-are-in-a-minority-again dept.
A malicious miner successfully executed a double spend attack on the Bitcoin Gold network last week, making BTG at least the third altcoin to succumb to a network attack during that timespan.
[...] To execute the attack, the miner acquired at least 51 percent of the network's total hashpower, which provided them with temporary control of the blockchain. Obtaining this much hashpower is incredibly expensive — even on a smaller network like bitcoin gold — but it can be monetized by using it in tandem with a double spend attack.
After gaining control of the network, the attacker began depositing BTG at cryptocurrency exchanges while also attempting to send those same coins to a wallet under their control. Ordinarily, the blockchain would resolve this by including only the first transaction in the block, but the attacker was able to reverse transactions since they had majority control of the network.
Consequently, they were able to deposit funds on exchanges and quickly withdraw them again, after which they reversed the initial transaction so that they could send the coins they had originally deposited to another wallet.
A bitcoin gold address implicated in the attack has received more than 388,200 BTG since May 16 (mostly from transactions it sent to itself). Assuming all of those transactions were associated with the double spend exploit, the attacker could have stolen as much as $18.6 million worth of funds from exchanges.
The last transaction was sent on May 18, but the attacker could theoretically attempt to resume it if they still have access to enough hashpower to gain control of the blockchain.
Bitcoin gold's developers advised exchanges to address the attack by increasing the number of confirmations required before they credit deposits to customer accounts. Blockchain data indicates that the attacker successfully reversed transactions as far back as 22 blocks, leading developers to advise raising confirmation requirements to 50 blocks.
Bitcoin Gold appears to use a standard ~10 min block rate so the new recommendation is for exchanges to hold funds for ~8 hours before clearing them.
(Score: 2) by bradley13 on Thursday May 24 2018, @06:04PM (3 children)
If you think you can make money mining coins in North America, you had better have a line on some unusually cheap electricity. Plus you've got to buy those racks of ASICs, and amortize those over their expected lifetime. You're competing against people who get their electricity nearly for free, and buy ASICs by the job lot. I think you need to do your math again.
The Bitcoin Gold heist shows the primary weakness of proof-of-work currencies. There are other approaches. Ripple's approved validators fits its goal of serving primarily as a currency for interbank settlements. For other currencies, I would think proof-of-stake to be a good option: you still have the danger of a 51% attack, but someone has to own 51% of the currency, which seems unlikely for a currency with any sort of worthwhile value, and also isn't something that can change very quickly.
Everyone is somebody else's weirdo.
(Score: 1, Touché) by fakefuck39 on Thursday May 24 2018, @11:26PM (2 children)
bought an new s9 from amazon with a 1600W 120V PSU, $3500. In the winter it's in the basement. In the summer it's on the top floor on a shelf near the ceiling, blowing out the dryer vent. electricity is $60/month. Gas heating runs about half the price of electric here, so when its cold I waste $30 a month. In the summer, its sucking in and blowing out the warmest air in the house, which makes more cold air come up from the basement where I crack a window a tiny bit. Zero extra money spent as the AC now runs less. The negative is the basement isn't freezing cold anymore and the whole house is the same temp. Oh - that's not a negative. When it's warmTurned it on, joined a pool, hooked up a wallet, just left it running.
It mined about a bitcoin and a half in a year. Real electric cost $60/month, effective cost $30/month 5 months of the year.
Yeah buddy, you've really got it all figured out, just not 2nd grade arithmetic. Tell us more of your thoughts please - I do always love to listen to someone with minimal knowledge and maximum opinion.
(Score: 2) by JoeMerchant on Friday May 25 2018, @01:30AM (1 child)
Serious question: have you even cashed out the $4K this thing has cost you yet, or will you HODL to the Mun?
🌻🌻 [google.com]
(Score: 1, Interesting) by fakefuck39 on Friday May 25 2018, @08:39AM
Serious answer - I have not. I have used it though, when it was between 10-20k - I only use it when it jumps high. I have about total of about $120k in bitcoin at the current price. In addition, here is some interesting stuff: I've been to about 50-60 countries and lived for extended periods in several. Here's some random stuff I ran across in the world: Las Vegas - you can pay for cabs and bars and hotels with bitcoin. I was surprised. Bavaria - their version of grubhub accepts bitcoin. Tokyo - I could officially pay government fees with bitcoin although I didn't. Paid 2 months rent in Dubai with bitcoin. So that's my experience, and why I don't cash it in.
This has nothing to do with mining it though, and the person to whom I responded is clearly one of those annoying unhappy people who just talk shit for the sake of getting attention, all while making himself look like an idiot clown. Those miners have paid for themselves in the bitcoin I used to pay for things - a long time ago. I could lose money on mining in theory if the .1 bitcoin I get per month drops below the price of the tiny amount of electricity it burns.
I don't read bitcoin news, I don't read about its development, I don't visit sites where people talk bitcoin. Got a real job, long career, and ain't got time for that shit.