update 18 August 2021

Bitcoin SV Struggles with an Ongoing 51% Attack

According to the latest report, Bitcoin SV suffered a 51% attack on Tuesday morning. Unknown persons initiated the attack after compromising transactions to start three shadow forks. 

Such attacks aim to secure cryptocurrency blockchains and block other transactions from getting confirmed. Let me explain how. After the attack, tokens overwhelm the network to reorganize transaction records. It then enables the attackers to double-spend and lowers their value as a result.

The Attack Affects BSV’s Price

Forbes has it that the BSV price has not climbed together with bitcoin’s price in the past year. On the contrary, it has lost 5% due to the attack. The attack has also spread panic among Bitcoin, BNB, XRP, Ethereum, and Dogecoin traders. The panic comes as the cryptocurrency market soars towards $1.7 Trillion.

“BSV is going through a massive 51% attack,” Lucas Nuzzi, a network data product manager at Coin Metrics, said via Twitter. He also noted that the attack saw some significant hashing power being released by these attackers.

Problems Arising From the Attack

In the past, bitcoin cash and bitcoin SV have faced accusations of centralization. According to reports, centralization might have rendered them vulnerable to such attacks and manipulations.

Steve Shadders also noted that the latest attack created three malicious forks that can lead to substantial double-spending. Steve is nChain chief technology officer.

However, some honest miners have successfully repelled two forks. According to Steve, these miners have chosen to reject fraudulent double-spending per the bitcoin whitepaper.

Notably, the third chain was much smaller. It only had 13 blocks, and the miners have already started its reversal process. 

Although the motive was not clear, it seems like it was more than just theft or for-profit purpose. Instead, it seems the attack aimed at damaging the reputation of blockchain networks since nobody has reported any theft or loss.

Some blockchain enthusiasts such as Steve feel encouraged by the miners trying to reverse the maliciously-created forks.

Current BSV Reputation in the Crypto Community

Currently, the Bitcoin SV fork does not have an appealing reputation in the Crypto Twitter community. One of the project’s primary stakeholders, Craig Wright, has continuously claimed to be Satoshi Nakamoto. Severely, he lies, and his statements and attacks have been irritating various blockchain developers and enthusiasts.

Another pseudonymous webmaster of the bitcoin.org site withdrew access to the Bitcoin whitepaper from UK users after a legal dispute with Craig Wright. In his social media accounts, he mocked the way Bitcoin SV promoters were handling the issue. He accused the platform of showing a high level of centralization in the project.

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Others claimed they would drop interest in BSV after dropping by 50% in its first halving.