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Altcoins

Bitcoin Gold is Actively Monitoring its Network, Says Co-founder Martin Kuvandzhiev

The Bitcoin Gold dev team has been looking to instill greater security measures to their BTG blockchain recently. This extra effort from the BTG officials comes amid concerns over security features regarding the cryptocurrency, which has suffered debilitating thefts of over $20 million in stolen funds over the past few months. The series of thefts, which stirred up a major controversy with leading digital finance exchange Bittrex, ended up with BTG getting de-listed from the Bittrex exchange platform.

The development team is reconsidering their ASIC resistant algorithm as compared a CPU based implementation. They’re also keeping a tighter eye on all events taking place on their blockchain while also being open to other options, in case another hacking attack takes place.

When asked if any newer security measures were being considered to avoid future attacks and de-lists, BTG Lead Developer Martin Kuvandzhiev told BlockPublisher that BTG were looking at the ASIC resistant algorithm, different to the one that NiceHash works with. He said:

We have changed our algorithm to one that is ASIC-Resistant (again) and also that is not being mined at NiceHash. We also are constantly keeping an eye on the things that are happening to our chain and we have another option if we are under such attack again.

BTG’s Hack History

Bitcoin Gold also implements an alternative proof of work in its blockchain, the Equihash, while also taking other security measures for users such as Replay Protection Mechanism and giving each user a unique wallet address. However, these security features have not been effective enough in the past in preventing thefts and hack attacks on the BTG blockchain.

Back in May, Bitcoin Gold was hijacked with rented computing power. After hackers took control of more than 51 percent of the overall hash power, more than 388,000 BTG (approx. $18 million at the time) was stolen from cryptocurrency exchanges like Bittrex. Hackers were able to use “double-spending,” a method of repeatedly tricking an exchange into transferring more coins than it should.

BTG issues a statement regarding their refusal to pay Bittrex 12,372 BTG which was asked by the digital exchange as part of a compensation. The statement read:

Bittrex informed us that they make this decision because the BTG team would not “take responsibility for our chain,” and that taking responsibility meant paying Bittrex 12,372 BTG to cover the loss they incurred. They later informed us they would cover part of the loss from their own BTG reserves and requested we pay the remaining ~6,000 BTG ($127,000), and that if we did not, we would be delisted.

Another detesting controversy occurred last year, when $3.3 million worth of BTG was stolen after users were tricked into downloading a fake wallet.

Razi Khan

Researcher, Electrical Engineer and a teacher, Razi is one who takes great intrigue in the prospects of blockchain and cryptocurrencies (BTC in particular) while contributing a critical approach over the subject regularly. Contact the editor at editor.news@blockpublisher.com

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