The verge cryptocurrency has been lately present on the news daily; sadly most of the news has not been so good for them. Today, a user discovered a flaw in the mining system of the said cryptocurrency; a popular theoric flaw: a 51% attack. This kind of attack is mostly referred as a study case, but it seems that at this time, the attackers were able to pull it off.
Investopedia defines a 51% attack as:
51% attack refers to an attack on a blockchain by a group of miners controlling more than 50% of the network’s mining hash rate, or computing power. The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users. They would also be able to reverse transactions that were completed while they were in control of the network, meaning they could double-spend coins.
The blog post of the user that discovered the alleged attack details the situation. He explains that, by the way that the coin is coded, every mined block must have a different algorithm if they are subsequent blocks. It seems that, now, they are subsequent blocks with the same algorithm mining them. The problem is that, according to the poster, the attacker was mining a block for every second, for thirteen hours before being discovered. This due to a bug on the XVG code that lets users mine blocks with spoofed timestamps.
This news comes after the verge team started a crowdfunding campaign to secure a partnership with an alleged “big partner” for this cryptocurrency. They did reach the goal, but they failed to announce the supposed big partner; announcing only the date for the reveal.
The blog post that details the attack can be found here.