Understanding the Controversy Surrounding Ethereum Classic’s Network Issues

What Happened: The Temporary Pause

Recently, two major cryptocurrency exchanges, Coincheck and bitFlyer, hit the brakes on Ethereum Classic (ETC) deposits and withdrawals. No, it’s not because they forgot their passwords; rather, it’s a response to some concerning network events that unfolded

The Great Hashrate Heist? Not Quite

In a tweet on January 7, Ethereum Classic developers responded to claims that a single mining pool was holding more than 50 percent of the network’s hashrate. Spoiler alert: It’s not a 51 percent attack, folks! The ETC devs attributed this unusual spike to ‘selfish mining’, which is a less malicious way to say, ‘someone’s hogging the network.’

Coinbase’s Dramatic Discovery

Just when we thought it couldn’t get crazier, Coinbase shared that they spotted a ‘deep chain reorganization’ in the ETC blockchain. This wasn’t just an ordinary hiccup; it involved double spends on January 5, leading to the suspension of ETC withdrawals and deposits. Because who wouldn’t want to play catch with lost funds?

What is Chain Reorganization, Anyway?

• Imagine a miner with more resources than the rest of the network.
• This miner can create a new transaction history as if they were rewriting a highly controversial book.
• Chain reorganizations can lead to serious issues if one group controls too much of the network.

Mining Madness: The Role of ASICs

The ETC devs suggest that the craziness started with the testing of new 1,400/Mh ethash machines by Linzhi, a company specializing in application-specific integrated circuits (ASICs). In simpler terms, they’re the fancy gadgets that help miners mine things faster—think of them as the sports cars of the mining world.

The Value of Ethereum Classic: Still Holding On?

As of now, ETC is trading around $5.02, marking a decline of over 7 percent in a day. Despite these hiccups, its market cap is around $539 million. If you’re wondering how much it costs to execute a 51 percent attack, Brazilian researcher Husam Abboud calculated it could range between 55 to 85 million dollars. So, you might want to double-check your wallet before pondering a malicious career choice.

Final Thoughts

With the current pause in ETC transactions and the challenges facing the network, it’s clear that Ethereum Classic has quite the ride ahead. For anyone invested in ETC, consider holding onto your hats—this rollercoaster is just getting started!