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Why do Cryptos like Verge (XVG) Suffer from 51% Attacks?

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Verge
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Cryptocurrencies have already demonstrated that they can be an extremely profitable type of business. With more and more of them appearing, more and more companies are starting to study, develop, and use them. Some have even launched their own coins, and have managed to advance and become quite a force. However, a lot of them forget to properly handle one very important aspect of cryptos, and that is network security.

Blockchain security

A lot of people have heard that blockchains are safe, transparent and that they can guarantee security for the cryptos. Despite the fact that this may be true in some cases, thinking that it automatically applies to all of them is quite an assumption. The fact is that this is still a very much new technology that needs to be perfected and developed further, especially when it comes to security. The fact that they are holding cryptos which can be very profitable today, makes them an even bigger target. Basically, the risk of attacking blockchain is high and costly, but if done right, the attack like this can bring a lot of rewards.

Big platforms know this all too well, and they were capable of protecting their assets. Their blockchains cannot be conquered due to the large necessity of hashing power that is needed to take the blockchain over. If someone did try to do it, they would have to spend much more than they would gain, which is why the hackers usually leave them alone. Small platforms, however, are much easier to hack and steal from. Ethereum Classic (ETC) is a pretty good example of this. It uses Ethereum’s technology, which the hackers have already studied and familiarized themselves with. However, ETC cannot afford the same hash rates, which makes it much more vulnerable.

The problem with Verge and Bitcoin Gold

Cryptos like Verge (XVG) and Bitcoin Gold (BTG) became vulnerable to making similar decisions. They have decided to resist mining on the industrial scale and instead wanted to provide individuals with a mining opportunity without them having to join mining pools. This means that those with more computing power can easily take over their entire blockchain if only they can acquire enough hashing power. In some cases, this is ridiculously easy.

As stated earlier, large currencies have a much better protection, and cannot be conquered via 51% attacks. For example, the entirety of Nicehash is only capable of matching 2% of BTC, or 3% of ETH. On the other hand, BTG and XVG would fall without any issues.

ETC has the same problem, and acquiring enough power to conquer the network requires approximately $1.5 million. This might seem expensive at first, but if someone were to hack it, they would easily be capable of taking over $55 million, which is more than enough for someone to actually try this.

Of course, acquiring the proper hardware, paying the electricity and similar preparations are needed.

How can this stop?

A lot of platforms that have suffered from 51% attacks were mostly following the same principles. Verge, for example, was hacked several times in the previous months. Despite the fact that platforms like Verge and Bitcoin Gold are pretty well-known these days, they are not big or strong enough to stop this kind of attack.

Some researchers propose that the platforms might protect their assets from this kind of attacks via Proof-of-Stake protocols, and strong upgrades that would protect their algorithms. In order for this to happen, though, the companies need to make the proper move.

Others have also stated that cryptos can only choose two out of the following three: security, scalability, and decentralization. The decentralization is the whole point of cryptos, but the other two aspects cannot be ignored either. And yet, achieving all three seems to be difficult, if not impossible.

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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

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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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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