Earlier this week, Ethereum Classic turned out to be the most controversial cryptocurrency in the market. The leading coin was under the community’s scrutiny as its blockchain succumbed to a deep chain reorganization that included double spend. The announcement regarding the 51% attack was first made by Coinbase, a leading cryptocurrency exchange platform in the US, stating that they have stopped all services for the coin in order to protect their customers’ funds.
However, post the announcement, the main highlight was the possibility of other Proof-of-Work going through a similar attack, especially on Bitcoin [BTC]. This comes across as a concern associated with the largest cryptocurrency as it deploys the Proof-of-Work [PoW] algorithm. In the whitepaper, Satoshi Nakamoto had stated:
“If a majority of CPU power is controlled by honest nodes, the honest chain will grow the fastest and outpace any competing chains. To modify a past block, an attacker would have to redo the proof-of-work of the block and all blocks after it and then catch up with and surpass the work of the honest nodes.”
This effectively means that the security of the network relies on whether more than 50% miners follow the instructions laid down in the whitepaper or not. Additionally, this does not apply only to Bitcoin; it stands true for all the cryptocurrencies using Proof-of-Work algorithm, including Ethereum [ETH]. The dependency over the honesty of the miners is often considered as the vulnerability of the Proof-of-Work mechanism.
Jimmy Song, a core developer of Bitcoin, said on Twitter:
“51% attack on BTC is really hard. Not only do you have to get 51% of the hash power in terms of mining equipment, but you also have to get access to enough electricity to feed those machines. Over time, this is going to be the much harder thing to obtain.”
Vitalik Buterin, the creator of Ethereum, stated that the reason Ethereum has not been attacked yet is its large size, on his official Twitter handle.
“ETH’s large size is why it has not yet been attacked. This 51% attack shows that 51% attacks are possible even on fairly large chains, increasing the risk that in the future PoW will be unsafe even for us.”
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LocalBitcoins see steady trading volume in Russian Ruble following cash-trades exodus
LocalBitcoins, the Finland-based peer to peer cryptocurrency exchange, announced earlier this month that trading in a country’s national fiat currency will be disallowed, leading many in the community to believe that countries not on the frontlines of the digital asset world would be hit the hardest. Three weeks on, some defiant trends have been noticed.
According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement. With many expecting a drop in volume, other top countries have also seen the absence of an immediate plummet, with Moscow being the stand-out.
The first week of June saw a notable high of RUB 1,174 million in volume owing to the native currency, while the aftershock of the announcement dropped the same down by to RUB 1,104 million by the second week. The next two weeks saw the volume surge back to its May 2019 heights, with the week beginning on June 22 recording a volume of RUB 1,188 million in volume.
On the basis of the above data, Russia is indeed a positive LocalBitcoins market.
The Finnish exchange has also been popular in South America, with its weekly volumes doing exceedingly well in the markets of Colombia, Venezuela, Peru, Chile, and Argentina, with Brazil, the only Latin American country left-out.
Buenos Aries saw its weekly volume from the initial weeks of June to mid-June drop from $13.71 million to $10.53 million, following the cash-removal announcement. In terms of the Colombian Peso, CoinDance stated that the number for the same was $9.98 billion towards the close of May 2018, and dropped to $7.16 billion by the first week of June. However, the same has since stabilized to stand at $9.2 billion.
LocalBitcoins began mulling the possibility of phasing out fiat currency trades following its inclusion under the supervision of Finland’s financial watchdog, the Financial Supervisory Authority [FSA] in March 2019. This inclusion was made days after Finnish legislators stated that cryptocurrency-based assets would be given legal status under the law. However, the act will officially come into force later in November 2019.
Additionally, several changes were made to the country’s Anti Money Laundering [AML] laws and Countering Financial Terrorism Act [CTF], which would require the exchange to follow the stated guidelines.
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