A new study has revealed that the latest Ethereum classic attack was more than just a malfunction, that authorized a double spend that resulted in the loss of millions. The Ethereum classic 51 percent attack netted the hacker crypto worth $5 million. The majority of the people initially presumed it was just an innocent slip; however, blockchain data analysis firm Bitquery has discovered the method used by the hacker to steal ETC.
On August 5, the blockchain analysis firm published an analysis breaking down every step the attacker did to carry out a 51 percent attack on Ethereum during the weekend. The steps highlighted indicate prudent planning and deep understanding of the Ethereum classic blockchain structure, in such a way that the hack was completed without instantly notifying blockchain securities until it was uncovered a few days too late.
How the Ethereum classic blockchain was compromised
The attacker transferred Ethereum classic from the exchange platform to his crypto wallet, then back to the exchange via the original ETC blockchain. Subsequently, the hacker used more than 51 percent of the accessible hash power to mine thousands of ETC blocks. Notably, some of the hacker-mined blocks contained transactions that sent ETC to different addresses that he owns rather than to an exchange.
In the end, the hacker broadcast his vicious blocks, which led to the restructuring of the blockchain framework, replacing the genuine blocks with those owned by the attacker. The attacker is said to have spent about 12 hours transferring Ethereum classic to exchanges for sale or converting it to alternative currencies.
51 percent attacks on a blockchain can be tragic
After the malicious blocks were identified, the digital ledger showed that the transactions that were being made to the exchange from wallets did not occur. Instead, the ETC remained with the hacker, suggesting how dangerous 51 percent attacks can be to a blockchain infrastructure that is meant to be unalterable. The study by Bitquery suggests the hacker spent under $200,000 to commit the damage, utilizing hashpower provided by daggerhashimoto.
It is not yet verified whether the attacker was aware of the situation or whether a stroke of luck hit him. In conclusion, 51 percent attacks are a worrying indication in the crypto industry. However, the public nature of blockchain and the rigorous detective work by blockchain watchers may provide us with expectations that such incidents will seldom go unidentified.
