Blockchain
What is a 51% Attack on the Blockchain?
A 51% attack is a type of attack against blockchain that occurs when a miner (a single attacker) or group of miners gain control of more than 50% of the network’s total mining/hashing power, allowing them to manipulate the blockchain and double-spend coins. This type of attack is particularly dangerous because it allows the attacker to reverse transactions and prevent new transactions from being confirmed.
Contents
Ethereum Classic blockchain
One of the major incidents of a 51% attack occurred in January 2019 on the Ethereum Classic blockchain. An unknown attacker was able to control more than 50% of the network’s mining power and used it to double-spend coins, reversing transactions and stealing more than $1 million worth of cryptocurrency.
Additionally, in August 2021, the Ethereum Classic blockchain was hit by another 51% attack incident where the attacker used their control over the network to double spend $5.6 million worth of cryptocurrency.
Bitcoin Gold blockchain
Bitcoin Gold, a cryptocurrency that forked from the original Bitcoin blockchain in 2017, experienced a 51% attack. This resulted in the double-spending of over $72,000 worth of Bitcoin Gold tokens. This was the second time that Bitcoin Gold has suffered such an attack, with $18 million worth of tokens being stolen in May 2018.
Bitcoin SV blockchain
In the case of Bitcoin SV (BSV), there have been several instances of 51% attacks reported in August 2021.
But according to the Bitcoin Association, the hacker’s attempts to perform a 51% attack were not successful.
Other major incidents
In addition to these incidents, there have been several other instances of 51% attacks on other smaller blockchain networks such as ZenCash, Monacoin, and Verge. For example, in April 2018, the ZenCash blockchain fell victim to a 51% attack, resulting in the attacker stealing more than $500,000 worth of cryptocurrency. Similarly, in May 2018, the Monacoin blockchain was targeted in a 51% attack, resulting in the attacker stealing more than $90,000 worth of cryptocurrency.
How to fight 51% attacks
These attacks also highlights the importance of implementing security measures such as checkpointing, which allows the network to periodically take a snapshot of the blockchain and use it as a reference point to detect and prevent any malicious activity.
Another way of mitigating such type of attack is to use a different consensus mechanism which is more resistant to 51% attack like Proof of Stake (PoS) which do not rely on hashing power to secure the network.
Conclusion
The 51% attack is a serious threat to the security of blockchain networks, particularly smaller networks. It is crucial for blockchain networks to take steps to prevent such attacks and for users to be aware of the risks associated with small and under-secured blockchain networks.
Blockchain
Fireblocks buys Australian blockchain start-up BlockFold
Fireblocks, the crypto company backed by Sequoia Capital and Coatue Management, has acquired BlockFold, a Melbourne-based start-up that helps financial institutions build blockchain-based systems.
As per Bloomberg , Fireblocks paid about $US10 million ($15.6 million) for BlockFold. While Fireblocks already works with large financial institutions, including Bank of New York Mellon, BNP Paribas and the Tel Aviv Stock Exchange, it has predominantly offered them services around custody technology.
New York-based Fireblocks is one of crypto’s most well-funded start-ups, having raised some $US1.2 billion so far. The company, which employs around 650 people in the US and Israel, was valued at $US8 billion in its latest financing round in January 2022.
The deal comes as large Wall Street firms ramp up efforts to issue and trade traditional financial assets like bonds and private-equity investments over blockchain networks, seeking to simplify processes and cut costs.
Founded in 2021, BlockFold specialises in tokenisation and smart-contract development for clients such as large financial institutions. Fireblocks and BlockFold have already worked together on projects including National Australia Bank’s recent cross-border stablecoin transfer.
Blockchain
Brazil Enhances National Identity Card Security with Blockchain Technology
In a significant stride toward modernization, Brazil is rolling out a novel national identity card system, fortified by the integration of a blockchain network. This innovative approach is set to bolster the security of data sharing between the Federal Revenue Service and civil identification authorities.
The cornerstone of this system is the shared registry known as b-Cadastros, designed to underpin the operations of the revenue service. This comprehensive platform facilitates searches, issuance, and modifications of the new ID cards and tax registration numbers. Notably, the platform’s development was orchestrated by Serpro, Brazil’s state-owned IT services corporation.
Serpro’s President, Alexandre Amorim, emphasized the pivotal role of the b-Cadastros blockchain platform in fortifying the National Identity Card project. “The use of the b-Cadastros blockchain platform is a major differentiator for the security and reliability of the National Identity Card project,” he stated.
The National Civil Identity Card (ICN) represents an upgraded iteration of Brazil’s traditional paper-based ID cards, and the nationwide issuance commenced in July 2022. The overarching goal of this project is to centralize the nation’s civil identification system and harness the ICN database to authenticate individuals accessing online public services.
The modern plastic card boasts an innovative feature: it empowers users to generate a single digital version of their identity document. This advancement enhances security, as it allows for validation through a printed QR code. In adopting blockchain technology for the ID cards, the Brazilian government anticipates streamlining processes and curbing fraud and illegal activities. Presently, individuals can request identification cards in all of Brazil’s 27 states, which presents challenges in terms of data integrity and security.
Serpro’s Amorim elaborated on the significance of blockchain technology in safeguarding personal data and thwarting fraudulent activities, thus delivering a more secure digital experience for Brazilian citizens.
The states of Rio de Janeiro, Goiás, and Paraná are set to pioneer the blockchain-based version of the national revenue service’s shared registry for the issuance of the new ID cards this week. The remaining states are poised to follow suit over the next six weeks, marking a significant step forward in enhancing the security and efficiency of Brazil’s identity verification and taxation systems.
Source: Forbes
Blockchain
Horizen’s $ZEN Holders Take the Helm with the DAO Launch
The Horizen community, get ready to embark on a revolutionary journey in governance as the Horizen DAO steps into the spotlight, as per Horizen’s new announcement.
Horizen, a public, open-source blockchain protocol, boasts a thriving ecosystem composed of developers, miners, node operators, and holders of $ZEN tokens across various blockchain networks. The introduction of the Horizen DAO paves the way for increased community involvement in decision-making and offers a platform for your voices to shape the project’s path.
Discovering the Horizen DAO
DAO, which stands for “Decentralized Autonomous Organization,” has emerged as the gold standard for decentralized governance in the blockchain world and beyond, as per Horizen’s new announcement.
Horizen has always been driven by its community, acknowledging the critical role of a strong social layer in upholding integrity throughout the ecosystem, as stated in Horizen’s new announcement. This ethos is guided by principles such as transparency, accountability, security, community engagement, continuous improvement, and social responsibility. Dive deeper into Horizen’s guiding principles on the Horizen governance page.
Stages of Proposals and Voting
The Horizen DAO takes decentralization of decision-making to new heights, encompassing both technical and non-technical aspects, along with other substantial system enhancements, as outlined in Horizen’s new announcement.
Protocol Improvement Proposals (IPs) are a well-established mechanism for selecting and implementing fresh features and fundamental protocol adjustments in numerous blockchain projects, as per Horizen’s new announcement. In Horizen’s case, these IPs are the cornerstone of the Horizen DAO’s community-driven governance. For Horizen’s primary chain and the EON sidechain, we respectively refer to these as ZenIPs and EONIPs, and they are the lifeblood of our governance process.
Ultimately, it’s the $ZEN token holders who wield the power to steer the future of Horizen, shaping the network’s evolution through active participation in the Horizen DAO, as per Horizen’s new announcement. Any holder of $ZEN can cast their vote on proposed improvements, while those with the requisite amount of $ZEN, either held or delegated, can propose changes to the community. To ensure effective community governance, users will also have the option to delegate their voting authority to individuals they trust as capable stewards of Horizen’s core values.
For a comprehensive understanding of the Horizen DAO, including its proposal phases, voting procedures, Constitution, and more, we invite you to explore the Horizen Governance page. Join us on this exciting journey to help mold the future of Horizen – we’re delighted to have you on board, as announced by Horizen.
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