Coinbase is the largest and most popular cryptocurrency exchange platform in the world today. One of the highlights of this platform is the robust security features that ensure every trader benefits fully from their digital assets. The system is monitored round the clock by a team of experts who are highly trained and conversant with blockchain network and platform.
Ethereum Classic Attack
One of the things that any digital currency is required to guarantee every user is that nobody in the ecosystem can spend the same coin twice. Every transaction that is made is stored in an open database that is available to everyone. For example, every Bitcoin transaction is recorded in a ledger. This arrangement ensures transparency and honesty.
On Monday, Coinbase management team announced that the platform would no longer support Ethereum Classic after it was determined that the digital currency was attacked. The attack made it possible for people to use the same Ethereum Classic coins twice instead of once thereby compromising the market.
The attack has brought to light the fact that blockchain experts from all across the globe have known about since the creation of digital currencies such as Bitcoin. Virtual/digital coins are only secure if the people who purchase and use them are honest while maintaining the records of transactions that are done through the blockchain network.
The decision by Coinbase means that thousands of crypto traders will no longer be able to exchange or buy Ethereum Classic coins from the platform. The attackers who executed this heinous fraud were able to spend Ethereum Classic coins twice discreetly before they were detected.
The attack dubbed, 51 percent attack, was executed by merely taking control of more than half the processing power that stores and computes Ethereum Classic blockchain network. This made it possible for the hackers to ingeniously create alternative transactions for some Ethereum Classic coins and spend them twice on the same system.
While responding to this, Ethereum Classic announced through the official Twitter account that the team detected the problem. However, they said that the team did not think it was a 51% attack and had not detected signs of double spending coins.
It is also reported that the attackers managed to spend coins worth approximately $460,000. Nesbitt added that the possibility of the attack is a problem that can affect any cryptocurrency and it does not mean that Ethereum Classic is more prone to this risk than other digital currencies such as Bitcoin. Read more trending cryptocurrency news here.