04 Aug 2021 9:41 AM +00:00

Bitcoin SV Hit By Yet Another 51% Attack

Bitcoin SV, a hard fork of Bitcoin Cash, was subject to another '51% attack' on August 3, following previous attacks on the BSV network by 'ZuluPool' in early July.

BSV - or Bitcoin Satoshi's Vision - was founded by Craig Wright. Wright is an Australian entrepreneur who has previously claimed to be the founder of bitcoin, Satoshi Nakamoto.

Following the attack, BSV's price has dropped, reaching $135.32 at the time of writing - down from 141.38 at the same time yesterday. This is currently over 72% lower than its all-time high of $491.64.

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What is a 51% Attack?

A 51% attack occurs when one individual or group manages to gain control of the majority (51%) of a blockchain. Once the attack occurs, the person can then decide which blocks are added to the chain.

The attack was first spotted by Lucas Nuzzi, who reported that over a dozen blocks were reorganised, and three blockchains were being mined simultaneously.

The attack lasted for 12 hours.

Bitcoin Association, a prominent backer of BSV, tweeted out instructions to node operators to combat the attack.

51% attacks are usually associated with weaker cryptocurrencies that have a smaller pool of miners and lower hashrate.

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Such consecutive attacks will have likely further damaged the reputation of BSV, which has a market cap of $2.66bn and is the 41 highest-ranked cryptocurrency on CoinMarketCap.

BSV is not the only Proof-of-Work cryptocurrency to have suffered a 51% attack. Ethereum Classic was hit by three attacks during July-August 2020. Bitcoin Cash, Bitcoin Gold, Verge, and Feathercoin have also been hit by these attacks.

Read More: Only 60% Of Cryptocurrency Holders Want To Use Crypto As A Payment Method, Says Report

[Featured Photo by Brian Wangenheim on Unsplash]