The privacy-focused Verge blockchain network (XVG) has undergone a major blockchain reorganization, replacing transactions throughout July 2020.
While it has been described as “the deepest riot among the top 100 cryptocurrencies,” analysts have yet to confirm that the incident constituted a coordinated attack.
Coinmetric’s COO, Antoine Le Calvez, was one of the first to notice the reorganization, and he shared a screenshot on Twitter showing at least 560,000 items disappeared on February 15.
Le Calvez speculated that the reorganization could be the result of double consumption, where multiple XVG tokens are used simultaneously for two separate transactions. However, given the scale of the accident, Calves admitted that it will take developers some time to access the data to determine the exact source of the overwrite.
As a result of this appeal, any user who has received or purchased XVG tokens since July 2020 may have completely lost their credit, as Deribit Insights researcher Hasu tweeted that “thousands of credits just evaporated.” Investor Verge tweeted that the wallet balance is empty after the attack.
Despite the potential size of the attack, Hasu believes it is “very easy to counter,” and argues that “the nodes will reject the attacker’s chain and restore the previous chain.” Hasu said the incident highlights the vulnerability of blockchains powered by GPU mining.
The reorganization was not proposed for the first time to fend off an attack by future attackers, as Hasu refers to 2019, when Vertcoin succumbed to a 51% attack. That same year, after Binance hacked over $ 40 million, founder and CEO Changpeng Zhao got carried away with the idea of transferring Bitcoin for a refund, but the idea was quickly resolved.
An unconfirmed screenshot provided by Twitter user CryptoMichael showed that XVG consultant AlexanDre said the source was linked to some nodes that wanted to fork. He added that there was no 51% attack.
Telegram announcement of XVG AlexanDre advisor on Verge reorg. Source: Twitter
Over the past six hours, the price of XVG has dropped about 15% to $ 0.0224. This drove the company out of the top 100, according to Coingecko. The Verge Explorers are still there.
The privacy-focused Verge (XVG) blockchain network has undergone a major blockchain reorganization, replacing transactions throughout July 2020.