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51% Attacks for Under $1000: New Site Shows Alarmingly Low Attack Costs

A Reddit user posted a website they made displaying the staggeringly low costs of carrying out a 51% attack on coins with few nodes or low security. Bytecoin could be taken over allowing users to double-spend the same funds twice for as little as $557 an hour, while Bitcoin Gold could be attacked for $3,800 an hour.

Other sites have tackled the 51% attack cost estimates before, but with a fatal flaw: They assumed the attackers were buying the hardware, when really it can just be rented remotely. While the hardware required to attack the Bitcoin network would cost $1 billion with hourly electricity costs of $500,000, other coins are not quite as secure.

The NiceHash service allows users to rent hashing power to mine cryptocurrency, providing the vast server farms necessary so the users can avoid the astronomical capital investment costs. NiceHash only has 2% of the hardware required to attack the Bitcoin network, but other currencies are well within reach.

What is a 51% attack?

Bitcoin was designed with the Proof of Work system which requires people to verify transactions with by using powerful computers to guess the number to complex algorithms. These people are called miners, and the more miners there are, the more difficult the algorithms become and the more processing power is required to run the network. This makes it very expensive to consider attacking large networks: Bitcoin alone uses more electricity than the island of Ireland.

The method of guessing numbers is called hashing, and the number of guesses a miner can make is called the hash rate. A miner or mining group controlling 51% of the hash rate is essentially in complete, non-competetive control of the entire network. Let’s say an attacker is in control of “X-coin”. They could send their X-coins to an exchange and trade them for Bitcoin, and then eliminate the transaction history from the blockchain history, leaving them with the original X-coin amount and the new Bitcoin as well.

If the figures are accurate, this is a major security concern for many different alt-coins using the Proof of Work system. The Proof of Stake system could theoretically be subjected to a 51% attack as well, but attackers would need to purchase and stake approximately half of the total coin supply. Buying coins drives up the price, making it very expensive to acquire half – it also makes it difficult to estimate the cost of an attack.

Charlie Lee of Litecoin is among the many people concerned at the figures displayed on the website.

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Amidst Shake Up, FUD, Bytecoin (BCN) Price Skyrockets

After one of the most promising occurrence for Bytecoin (BCN) in the space which was attributed to the listing it got from Binance, the world seems like a place of pain and turmoil for the altcoin due to series of attacks it got from different cryptocurrency enthusiasts, bigwigs.

The allegation that it is a pump and dump due to price fall, network, and withdrawal issues made the cryptospace scared.

All the beefs never had a lasting effect as the altcoin is shaking off the dents to be a gainer in the market since yesterday.

How the incident all happened.

On May 7, Binance, on its Twitter page announced the listing of Bytecoin on its platform, causing a boost in the price of the altcoin. By May 9, Bytecoin had already stood up to achieve an all-time high price of $0.0300 in the market. People never perceive the achievement as a bizarre because the effect of being listed on the great Binance should surely be a big one.

Even though the crypto market is known for volatility and the fact that many observers and analysts immediately weighed in on the progress, doubting whether the price rise has come to stay or a pump and dump, the plummeting value afterward came to the surprise of people.

After the value rise, Bytecoin plunged to a low value of $0.00996 on May 11 (two days after). Not that alone, other observers opined that Bytecoin is a broad daylight scam due to the plunge and some other subsequent effects like the altcoin’s inability to manage the transactions on its platform, and the fact that its record was moving close to being on CoinMarketCap and some other notable pricing platforms.

According to the claim, the altcoin on its Twitter page announced that it is experiencing some predicaments.

“The network is experiencing an unusually high load. Transactions can be delayed, node synchronization can lag far behind. The team is working hard to solve these issues. It’s strongly recommended to avoid any transferring of BCN until the situation is resolved”.

“Dear @CoinMarketCap, could you please reinstate us on your site so our users can accurately see our value? We have been trying to contact you for the last 24 hours, we have fixed the major bug in our software that caused issues for our community”, Bytecoin twitted.

The Turn-Around

Surely, after a tough moment, there comes relief. Bytecoin, after some days, announced that it had fixed the issue and all user can withdraw and deposit. Also, it got reinstated on CoinMarketCap and now, Bytecoin in northing in the market.

Ranked 16th on Coinranking, the last 24hrs has been beautiful for Bytecoin as the altcoin stood up with an added value of 26.88%. Now priced $0.0121 against Dollar with a total market cap of over 2.2 billion dollars.

Success is for those who don’t relent.

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Enthusiasts Allege Bytecoin (BCN) Is Broad Daylight Scam

Enthusiasts Allege Bytecoin (BCN) Is Broad Daylight Scam

Bytecoin (BCN) after witnessing a growth of over 165% in a single day just immediately it was announced that Binance added the cryptocoin, then it has been faced with series of problems, ranging from plummeting price to network, and withdrawal issues.

Enthusiasts and observers who weighed in on the issues bedeviling the coin are of the opinion that the cryptocoin may be a broad daylight scam, considering that the moment it got listed on Binance, it is unable to manage the number of transactions happening on its platform.

As at the point of writing, Bytecoin [BCN] has no traceable record on CoinMarketCap and some notable websites where price and value of every coin can be gotten. Enthusiasts of the coin who believe it could make them great were surprised with the incident as they have been unable to withdrawal and deposit any fund for close to 20 hours.

Market observers point that the coin is a scam and only came to cart away funds of unsuspecting enthusiasts. Some are saying the BCN market crashed for the fact that the coin could not manage an enormous number of users and transaction.

Yesterday, CoinMarketCap placed Bytecoin [BCN] at the 15th position and it later dropped to 1594th position without current price, market volume, and even market cap.

However, on coinranking, Bytecoin is ranked 11th and still maintains $ 0.0282 trade value, a 24 hours percentage increase of 57.01%, and 7 days percentage increase of 420.42%.

However, Bytecoin has officially made a poorly worded statement on the obscene happening, saying the network is witnessing unusual high load.

“Bytecoin network is experiencing unsual high load. Transactions can be delayed, node synchronization can lag far behind. Team is working hard to solve issues. It’s strongly recommended to avoid any transferrings of BCN until the situation is taken under control. We will notify you right after everything will be fixed!”

Image Credit: Imgurl

Also, Binance who witnessed the highest transaction of Bytecoin yesterday also weighed in on the issue, allaying the fear of users, stating that everything will return to normalcy.

“Due to Bytecoin (BCN) network issues, deposits and withdrawals are experiencing severe delays,” Binance announced.

“The Bytecoin project team is working to resolve the issue. Please be cautious of high price volatility and trade with caution.”

Meanwhile, many traders have lost whopping sum of money due to the sudden network issue.

According to a Telegram user: “BCN made me lost everything I worked for in a month”.

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Bytecoin surges 30% on Binance listing

Nothing can give a cryptocurrency a greater boost than a listing on a major exchange and they don’t come much bigger than Binance. Just a couple of hours ago the world’s second largest exchange by trade volume announced that it was listing the relatively obscure privacy coin Bytecoin.

The announcement had immediate effect with prices pumping over 30% in less than an hour. Analysis website reported that BCN surged from $0.007 to $0.009. In terms of Bitcoin it increased a similar percentage from 74 satoshis to 97 in about an hour.

The trading pairs provided by Binance were BCN/BNB, BCN/BTC and BCN/ETH. According to the blurb on the website Bytecoin is an open source, private and untraceable cryptocurrency that was started in 2012. It is the first coin that implemented CryptoNote technology to build the project and as such was very popular on the Dark Net for its anonymity.

As soon as a transaction appears on the blockchain, the address cannot be viewed by anyone and so BCN became the forefather of all of the anonymous cryptocurrencies based on this technology. The tech employs ring signatures, unlinkable transactions, and stealth addresses which all serve to keep exchanges totally private and make Bytecoin unique.

According to the website;

“Bytecoins are gradually getting more expensive over time, since the emission is limited to 184.47 billion BCN. The number of Bytecoin emitted each 120 seconds is slightly decreasing. As a result BCN gains value and the exchange rate increases.While currencies with sharp decreases of reward per block are exposed to intense declines in network power, Bytecoin emissions are decreasing slowly, which protects the currency from economic shocks.”

The listing on Binance has propelled this altcoin into the top 25 by market capitalization where it has usurped other popular altcoins such as Icon, Lisk and Verge. At the time of writing BCN was at 20th spot with a market cap of $1.7 billion, just behind OmiseGO with a similar figure. Trade volume in Bytecoin has jumped over 160% in the past 24 hours from $4.5 million to $12 million.

In general cryptocurrency markets have recovered a little from their two day selloff and Bitcoin has remained steady at around $9,400 at the time of writing.

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Bitmain Announces New Monero-Mining Antminer X3, Crypto’s Devs Say Will ‘Not Work’

Bitmain’s just-released ASIC-powered Antminer X3, designed to mine the CryptoNight hashing algorithm used by Monero (XMR), may not be effective by its first release in May 2018, according to an article by The Next Web published yesterday, March 16.

The new Antminer, announced on Bitmain’s Twitter on March 15, comes at two price points: $11,999 for the first round in delivered May, and $7,599 for the second datch, delivered in June.

However, the project lead at Monero, Riccardo Spagni, linked to Bitmain’s Twitter announcement in his own tweet, stating that their new miner will “NOT WORK [sic]” for mining Monero:

Bitmain is also offering two additional batches that ship after the first two batches, but only to addresses in Hong Kong. The two new batches are priced at  $3,000 for shipping after batch 1 and $1,900 for shipping after batch 2.

Apparently following Spagni’s response, the sales pages for the two Hong-Kong bound Antminer X3 batches were updated to contain the following notice in the product description:

“One major cryptocurrency which is using CryptoNight hash function is about to change their PoW algothrim, and according to their public statement, it is purposely to brick ASIC mining rigs including X3. When you buying it, you are betting that they are wrong.”

The notice adds that there will be no refunds accepted.

In February of this year, in response to potential threats of new types of ASIC mining that would be able to mine Monero, the privacy-centered cryptocurrency wrote on their blog about their “intention to maintain ASIC resistance by swiftly reacting to any potential threat from ASICs and considering slightly modifying the PoW at every hardfork”:

“We strongly believe that it’s beneficial to preserve our ASIC resistance. Therefore, we will perform an emergency hard fork to curb any potential threat from ASICs if needed. Furthermore, in order to maintain its goal of decentralization and to provide a deterrent for ASIC development and to protect against unknown or undetectable ASIC development, the Monero team proposes modifying the Cryptonight PoW hash every scheduled fork, twice a year.”

The Next Web does note that the Antminer X3 is marketed for mining more than Monero, as it is also compatible with Bytecoin, Aeon, Dash, and several others, although the site adds the caveat that there is “no guarantee this will still be the case” by May and June.

Users on Reddit have quickly taken offense to Bitmain’s new Antminer. Reddit user KnifeofPi2 posted yesterday, March 16, an excerpt from a satirical press release alleging that Bitmain was entering the “doorstopper” business:

“When asked why a doorstopper had the word “miner” in its name, Jihan Wu, the CEO of Bitmain, stated that “The Antminer X3 looks, works and sounds like a cryptocurrency miner. It even has a built-in 550 watt heater that hashes an obsolete algorithm.”

Another Reddit user, hodlingvtv, took a more serious approach, writing that “Bitmain is currently performing a large scam”:

“tl,dr: Don’t buy bitmain’s x3. They asic mined monero and now that this will not be possible anymore they want to dump their machines on you.”

The normally secretive Bitmain made the news in late February, when a report showed that the four-year-old company had made profits between $3 and $4 bln in 2017, while American graphics processing unit (GPU) manufacturer Nvidia, founded 24 years ago, made $3 bln during the same time period.