Vertcoin, an altcoin created in 2014 aimed to be pitted as a direct hedge against ‘long term mining consensus centralization on the Bitcoin mining network’ has suffered an alleged 51% attack.
According to a medium post by Mark Nesbitt, a research analyst at Coinbase, the altcoin was attacked at 4 different instances, resulting in losses of [unconfirmed] almost $100,000.
The 51% attack is gradually setting its own name in the cryptosphere. According to Satoshi’s whitepaper, the majority nodes are the driver seats for the block. What’s amiss this progression is the intentions of the majority. Normally, it’s an excellent way of running over any malicious intent with the power of the majority but what if the majority isn’t honest? What happens then is the double spending that Vertcoin had to go through.
The ‘reorganization’ in Vertcoin’s case was 300 blocks deep, meaning that the miners made an alternate history for 300 blocks putting the double spending losses at about $100,000.
This clearly shows that evil intentions are sophisticated enough to run over the most acceptable protocols in place.
‘Exchanges that support these assets will continue to suffer losses, with the ultimate result that exchanges will be forced to de-list these assets. In such an environment, it’s hard to find a compelling argument for why these assets should have value.’
To support his statement, Nesbitt cites that similar incidents that have taken place in the industry this year, naming BTG, XVG, and MONA were all eventually de-listed from some of the significant global cryptocurrency trading platforms.