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“Not on our watch!” DigiByte response to the recent Verge (XVG) 51% attack

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Most crypto enthusiasts will agree that the recent 51% attack on Verge coin has raised a lot of concerns over the security of most if not all digital currencies. The hack on the Verge Blockchain resulted in a loss of over $1 million worth of XVG coins after a hacker managed to control and manipulate the Verge network.

What is a 51% attack?

Well, think of the Blockchain as a governing system that depends on the consensus of all working agencies. In such a setting, the rules and regulations governing the entire system not to mention the decision-making process will be determined by those who control a majority of the entire ecosystem. In this case a 50 plus 1 percent stake. In terms of a Blockchain network, a 51% attack occurs when a single entity manages to control more than half of the network’s nodes. This kind of control gives the entity ability to change the network’s rules and protocols. Essentially, a hacker can manipulate mining protocols and manage to mine coins at the lowest level of difficulty. The hacker can also enable a double spend on the network or even shut down the entire network.

In the case of Verge XVG, the hackers managed to trick the network and mine XVG coins at the least difficulty. The Verge Blockchain uses a rotational mining algorithm that alternates between varieties of mining algorithms. According to reports, the hackers managed to hack two of the mining algorithms in the process causing a slowdown in mining on the Verge Blockchain network for a couple of hours.

The Digibyte team responds

In response to the attack, a part of the Verge community took it positively and supported the Verge team as they continue to patch the problem. However, the Digibyte community has been concerned about the DGB Blockchain and here is what the DGB team had to say about the possible vulnerabilities on their own Blockchain.

“To those asking about the Verge attack & if the #DigiByte #Blockchain is vulnerable to the same attack. Absolutely not. We fixed this problem with #DigiShield & #MultiShield in 2014. $VXG allowed up to a 2 hr discrepancy in block times & used “Dark Gravity Well” for difficulty.”

The response came as a post on Twitter and sparked a conversation about the true state of DBG’s Blockchain. In fact, one of Digibyte Foundation ambassador (Josiah Spackman) came out with a post on Medium illustrating how Digibyte is built to withstand such an attack.

Digibyte’s Security strategy with Digishields

In the event of a 51%attack on Digibyte, the Digishiled’s dynamic difficulty retargeting would kick in on every single block and essentially stop the hacker from getting away with free coins. AS illustrated by Spackman, the hacker would actually need a 91% control over the hash power of one of the algorithms which are impractical even though it can be done.

In addition, Digibyte is already planning a fork later in the year that will make the DGB Blockchain ASIC resistance to some algorithms such as Qubit and Groestl. The team plans to put in more GPU friendly algorithms in place for better distribution and decentralization. With more decentralization comes better security on the network.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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