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51% attack on Satoshi Vision Bitcoin network; What happened to BSV?

Bitcoin’s digital currency network (BSV), which is a fork of bitcoin cache, has been attacked by 51% and the attackers seem to have manipulated part of the network transactions. However, the evidence shows that users’ assets have not been stolen.

to the Report Following the attacks by Satoshi Vision Bitcoin Network, many digital currency exchanges stopped trading this bitcoin fork, and Bainance announced that it would disable the extraction of this digital currency by the end of the month.

Satoshi Vision Bitcoin, one of the most prominent digital currencies created by a fork, is going through very difficult weeks.

In the first phase, the digital currency network was attacked on June 24 (July 3), July 1, 6 and 9 (July 10, 15 and 18). It is unknown at this time what he will do after leaving the post. However, the fact that someone has succeeded in arranging the “re-spend” process has angered market participants.

A few days later, the British exchange Gravity suspended the digital currency, citing that several large exchanges had stopped depositing and withdrawing Satoshi Vision, and said it had forced liquidity suppliers to stop marketing the asset. Since then, Satoshi Vision has been trading on the exchange platform.

On Tuesday, Bainance announced that it would close its Satoshi Vision mining pool by the end of this month. It is estimated that the Binance pool has allocated a processing power of 0.044 exacerbations per second (EH / s) to the Satoshi Vision network, which is equivalent to 8.2% of the total processing power of this digital currency network. This binary action reduces the power of Satoshi Vision network to process transactions, which can make the formation of attacks even easier.

A set of unfortunate events seems to have greatly affected the price of Satoshi Vision. The creator of this digital currency is Craig Wright, a controversial Australian businessman who has long claimed to be the creator of the legendary bitcoin, Satoshi Nakamoto. Satoshi Vision is currently 73 percent below its all-time high of $ 461 in May. In the last 24 hours, the price of this digital currency has increased by 2.59% and reached $ 124.67.

51% attack on Satoshi Vision Bitcoin network;  What happened to BSV?
Satoshi Vision Bitcoin Price Chart

It had been more than two years since the Kraken, Okcoin, Okcoin, Coin Base, Bainance, Independent Reserve and ShapeShift exchanges were shut down by Saturn Vision. These actions were in response to some of Wright’s unusual behavior, in particular to file a lawsuit against his critics.

Of course, Wright also reacted to these actions. He is the CEO of Scientific Research at nChain, and in June this year in a London court granted the right to publish the Bitcoin white paper written by Satoshi Nakamoto on the website. Was published, appropriated. He insisted that the white paper was his own signature and that had no right to post it on its website. Wright won because Cobra, the anonymous owner of the website, refused to attend the court hearing.

Also read: What is White Paper and How to Read It?

However, some exchanges still support Satoshi Vision. Bittrex now allows its users to convert their Satoshi Vision to Fiat. OKEx and Huobi also support Satoshi Vision trading in the Stables and other digital currencies.

The Bitcoin Association, a non-profit organization based in Switzerland, supports the development of the Satoshi Vision network and startups and companies based on Satoshi Vision. The association has said it is actively communicating with digital currency exchanges and trying to persuade them to resume deposits, withdrawals and other Satoshi Vision-related facilities.

51% attack on Satoshi Vision Bitcoin network;  What happened to BSV?
Image by Craig Wright, founder of Bitcoin Satoshi Vision

What is Satoshi Vision Bitcoin?

Satoshi Vision is a fork of bitcoin cache and bitcoin cache itself is a fork of bitcoin. Satoshi Vision uses a mechanism in its network in which the block size is not fixed and changes according to the amount of supply and demand. During the upward trend in 2017, transaction fees on the main bitcoin network skyrocketed and the processing of some transactions took several days. This was partly due to the Bitcoin network fee setting structure, in which transactions compete for a portion of each block space and offer miners commissions.

This is known as the Bitcoin scalability problem. As network usage increases, so do transaction fees. To solve this problem, one of the active groups in the Bitcoin community came up with a solution; By increasing the size of the block, miners can assign more transactions to each block, thus reducing the network fee and at the same time processing more transactions every 10 minutes.

But the move was opposed, sparking a debate over increasing the size of the war block in the Bitcoin community, and ultimately those who wanted to keep the size of the block constant won.

Then, on August 1, 2017 (August 10, 1996), Bitcoin Cache was disconnected from the Bitcoin network as a hard fork with a block size of 8 MB instead of 1 MB. However, among the group that seceded from the Bitcoin community, not all members agreed with the changes. The Wright-led group believed that the block size was not yet large enough. Eventually another fork formed. This time the fork was made from the Bitcoin Cache network, and a new network called Bitcoin Satoshi Vision emerged, which eventually introduced a 2,000 MB block size in the Quasar update.

Later, activists in the newly formed Satoshi Vision community, which had a free market mentality (a market in which supply and demand determine price), examined the limited size of the block inherited from Bitcoin and asked themselves: Bitcoin claims to have a free market nature, why not a free market flow that determines the size of the block? Therefore, the block size limit was completely removed from the Satoshi Vision network mechanism.

Also read: What is a fork? What is hardfork, softfork and their effect on price?

The story of Satoshi Vision network attacks

During the June and July attacks, an mining pool called Taal captured 78 percent of Satoshi Vision’s hash rate. However, only achieving a 51% hash rate is enough to put network control in the hands of a specific group. It is worth mentioning that Tal did not harm the network and did not commit a 51% attack.

51% attack on Satoshi Vision Bitcoin network;  What happened to BSV?
Satoshi Vision bitcoin network hash share mining pools

The attack was carried out by an unidentified miner from the Zulupool pool, according to an email released by the Bitcoin Association. To clarify the matter, it is necessary to say once again that this miner has committed “fraud”.

Josh Petty, founder of the Twetch platform, said he had spoken to the original Zolopol mining pool, which uses the Hathor network to mine Satoshi Vision, and confirmed that the fraudulent miner had nothing to do with them. The Hawthorne network provides a service to miners that supports the extraction of all currencies based on the SHA256 algorithm. Bitcoin Network and Satoshi Vision both use this algorithm.

Petty wrote in an email:

The attacker, who calls himself Zolopol, refers to the Hawthorne series or the Hawthorne chain status in the message [مربوط به تراکنش] Coin Bass did not put. Since all of Zolopol’s hashtags are provided by Hawthorne Extraction Service, which is compatible with the Bitcoin SHA256 algorithm, it can be said that they were not real Zolopol.

Petty added:

The scammer appears to have used the network’s 100-second-per-thousand hashtag share, reduced by the Chinese miners’ downtime, to attack some of the less difficult networks and “re-spend” them. [یا برگشت تراکنش‌های تأیید شده] Face. The only reason for this is that the Satoshi Vision hash rate has recently been around 0.5 to 1 exx per second, which is equivalent to 0.5% of the bitcoin hash rate. This means that even smaller bitcoin miners could easily launch larger attacks through the pool.

Petty said these incidents were rare because simple extraction is really more profitable in such circumstances.

Petty also added that Twitch, a micropayment-based social network operating in the Satoshi Vision blockchain, was not affected by the attacks.

Also read: What is a 51% attack on the Blockchain? + Video

What were the consequences of these attacks?

According to the Bitcoin Association, the extent of the damage is still unknown.

This forum has said:

Satoshi Vision transactions are having trouble re-spending. However, there is no evidence that these fraudulent actions have harmed other sectors. It is possible that the design team of these attacks returned only their own transactions.

In other words, these attacks, which have disrupted the return of transactions to the network, have so far had no casualties. So it is possible that the attackers did it with the aim of destroying the network, rather than for profit.

Bitcoin Forum added:

No harm [به موجودی کاربران] No one entered and nothing was stolen from anyone. No other network has been attacked since July 9 (July 18).

The Bitcoin Association has also said it does not tolerate attacks and has been closely monitoring the issue.

The nonprofit said:

Satoshi Vision’s founding team has identified one of the addresses associated with the attack (address: 1G47mSr3oANXMafVrR8UC4pzV7FEAzo3r9) and said that this address has long been associated with ransomware and other Bitcoin, Bitcoin and Bitcoin network attacks Vision has been in touch.


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