Selfish Mining Attack Hits Japanese Cryptocurrency Monacoin

Selfish Mining Attack Hits Japanese Cryptocurrency Monacoin

A network attack on Monacoin, a cryptocurrency developed in Japan, caused roughly 90,000 USD in damages between May 13th and 15th.

As it appears the attack was a selfish mining attack, where one miner manages to successfully mine a block on the blockchain without broadcasting the new block to the other miners. If the secret miner manages to locate another block before the other miners find any new block, then the secret miner has now successfully made a branch in the chain that is longer than the chain that every other person is taking a shot at.

According to the blockchain protocols, the chain possessing more block is considered by the mining network to be the authentic chain, as it posses the maximum number of “ proof-of-work”. So, when the secret miner makes their more extended chain public, it discredits any of the pieces found by different diggers amid the time the secret chain was covered up.

A selfish mining can be considered an act of pure vandalism, destroying blocks that become “orphaned” when the selfish miner communicates their chain on the system. Or on the other hand, it’s conceivable that somebody possessing a concealed chain could benefit from the assault. If the selfish miner makes a transaction on the soon to be disrupted chain and receive their purchase in some form or the other before the transaction is refuted, at that point they have effectively never paid.

In this situation, it appears the attacker had a go at sending Monacoin to trade outside of Japan, for example, Livecoin, to swap them for different monetary forms before the concealed chains were uncovered. The miner, still unknown at this point, had enough processing energy to take as much as 57% of the hashrate at one point to execute the attack. The attacker had been trying to find a weakness in Monacoin from the last 6 months.

The developer’s posted on their official Twitter account saying that they “grasped the attack”, however, have not posted from that point forward a reasonable statement on proposed solutions. Different sources demonstrate that developers are presently working with exchanges on an arrangement to move back the Monacoin blockchain to a point before the assault happened.

The attack is no longer happening, but most of the traders stopped all deposits, while they are working on fixes to stop any such future assault. All balances in Monacoin wallet are considered protected.

Numerous cryptocurrency communities are watching to perceive how the assault on Monacoin plays out to see what they can learn to reinforce their own systems.

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Madhuri Arora
A passionate writer and an avid reader. I love watching action and superhero movies. Love food, music, travel and games.