London, UK, 7th August 2021, ZEXPRWIRE – Last week, the Bitcoin SV blockchain was attacked, with a third of its value lost in four days. The attack exploited a vulnerability to execute the attack. This is not the first time that Bitcoin SV has faced such attacks, and this is yet another piece of evidence showing that Bitcoin SV’s network isn’t as secure as it should be.
The attackers have managed to access more than 51% of the hashing power on the network, which means they can control transactions and make changes to transaction history by mining blocks faster than other miners on the network. FinancialCentre broker, Nick Bauer, says that this could lead to serious consequences for investors holding their crypto assets in Bitcoin SV because if they don’t have full control over their funds, they are exposed to theft or fraud without knowing about it.
Bitcoin SV’s main appeal to investors is that its blockchain works faster than the one used by Bitcoin Cash (BCH), which allows for up to 300,000 transactions per day instead of BCH’s 15,000 transactions per day. However, when you look at these figures more closely, they are not nearly as high as they appear. Bitcoin SV’s blockchain is just 300 times faster than BCH’s, but that doesn’t necessarily mean it will be able to handle 300000 transactions since each transaction consists of more than a single transfer.
The focus on speed comes because the cryptocurrency’s CEO, Craig Wright, believes in his ability to create a blockchain capable of handling more than 5 billion transactions per day, with the aim to rival SWIFT. However, Bitcoin SV lacks fundamental features such as storing files or simple, smart contracts and is far from a viable SWIFT alternative.
What is even more worrying about this attack on the network is that it is not the first time that such an incident has occurred. Similar attacks have happened on other networks, including Bitcoin Gold (BTG), Verge (XVG), and Monacoin (MONA). This is just further evidence showing that the network isn’t secure as it should be.
As a result of this hack, transactions were reverted, and block rewards were given to the attackers. As a solution, Bitcoin SV is looking to hard fork its blockchain to change the consensus rules and recover from this attack. Full replay protection has been added to prevent replaying transactions on both chains after the upgrade is completed.
Bitcoin SV has been criticized for its continuous hard forks that prove to be a burden on the network and continuously prove that it is not as secure as it should be. Forks can create compatibility problems for exchanges, wallets, and other services, which will need to deal with multiple chains of different lengths if they cannot upgrade their software in time.
Bitcoin SV has also been criticized for the way its blockchain was created. The cryptocurrency’s mining algorithm favors larger mining pools, which is problematic because it creates a centralization of power that could be exploited in future attacks and does not effectively promote decentralization.
When you invest in crypto assets, you need to ensure that the network is secure so that your funds are as safe as possible. When the network is attacked, transactions and block rewards can be reversed by miners who have more than 51% of the hashing power on the network. The best way to ensure security is to invest in a cryptocurrency with strong consensus rules between developers and users. It doesn’t undergo frequent forks and has strong replay protection to ensure the original blockchain isn’t affected after upgrades.
Bitcoin SV, which is often criticized for its continuous hard forks, shows that attackers can control more than 51% of the hashing power on its network. This may lead to major theft on their blockchain without people knowing about it because transactions and block rewards can be reversed. This is an issue that Bitcoin SV needs to address urgently because it does not have replay protection between its protocol upgrades and other security features such as the ability to store files and simple, smart contracts.
The cryptocurrency has also been targeted by hackers who successfully managed to steal more than $30 million worth of BCHSV in recent days. Not only did the attackers manage to steal more than $30 million, but they also managed to create a rift among members of the cryptocurrency community, with some agreeing with those who had attacked the network and others criticizing them for their lack of understanding of how cryptocurrencies work.
The question now is can we trust an insecure network like Bitcoin SV? If there is a real risk of not doing transactions or, even worse, that attackers will steal the funds invested in such projects. To prevent this from happening, bitcoin investors should look to store their coins on exchanges rather than leaving them in the network where they may be vulnerable.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.