Bitcoin Gold wants to keep you informed

25 May, 2018
by Joeri Cant
Bitcoin Gold wants to keep you informed

Bitcoin Gold (BTG) after 51% Double-Spend attacks leading to the theft of approximately $17.5 million, considers it a high priority to keep you informed about "what’s going on, what we’re doing, and what’s going to happen next."

The Bitcoin Gold Organization sent out a detailed memo to all the exchanges that carry Bitcoin Gold, while making sure they stay transparent and share information with the public.

The BTG organization said: "An unknown party with access to very large amounts of hashpower has been using "51 percent attacks" to perform "double spend" attacks to steal money from exchanges. We have been advising all exchanges to increase confirmations and carefully review large deposits. There is no risk to typical users or to existing funds being held."

51 percent attacks force reorganization in the blockchain. While this not the result of a security flaw, the attack can be launched against any blockchain. If this attack manages to gain control of over 50 percent of a network's computing power, they are able to both modify and exclude transactions making it possible for the attacker to double spend, by reversing transactions after they have been confirmed, as well as prevent all other miners on a network from mining valid blocks.

The BTG team added: "One of the targeted exchanges reported that they strongly believe this attacker attempted to hit them with a double-spend of BTC in the past." The undisclosed exchange stated: "We are 100 percent sure that it is the same person, we found many associations between the accounts."

In response to the attacks, a number of cryptocurrency exchanges have ramped up the number of confirmations they require to accept large transactions, and some even closed their deposit wallets entirely.

The Bitcoin Gold team said that a major upgrade, which was planned for the end of June, is now being pushed to take place as soon as possible, and will eradicate the use of ASIC hardware to mine BTG. This change in algorithm and a new fork will reduce the risk of 51 percent attacks in the future.

"We’ve been working at an incredible pace the past days to put the plan and pieces together, and we expect to upgrade our mainnet approximately seven days after the necessary software is up and running on our testnet. While it would be better to give all our partners more than seven days to test and deploy to avoid disruption, these attacks have already forced disruption on us all, so we feel it's best to get the upgrade completed as soon as we possibly can."

They continued by saying: "The Community considers these attacks on exchanges to be attacks on us all, but we and our community are resilient and remain dedicated to decentralized solutions."

The BTG team ended the statement by expressing their gratitude for the responses and support they’ve been receiving from their community, as well as the communities of other coin developers: "it’s heartwarming to receive encouragement and advice from so many of you, and we deeply appreciate it. Thank you, all."

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Read more about: Bitcoin Gold (BTG)

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