Crypto Exchange Coinbase Terminates Ethereum Classic Due to Reorganized Blockchain History

Jan 8, 2019 at 20:30 Update Date :Jan 8, 2019 at 20:30 UTC

In the recent time, Coinbase, a well-known crypto exchange has halted all the ethereum classic transactions along with activities like withdrawn and deposits. As per the reports, a series of reorganized blockchain history is predicted to be the reason behind the termination of Coinbase.

On Sunday, the cryptocurrency ethereum had seen over 100 blocks reorganized during a 51% attack, says the information collected by two block explorers named Bitfly (Etherchain) and Blockscout. According to the crypto firm Coinbase, more than 88,000 Ethereums (worth $460,000) have been detected which were spent two times.

The news reports of a media publication Coinness say that an analyst had detected the hash rate processing abnormally into a single mining pool which caused mass reorganizations of the mining blocks. Initially, the officials were refuting the core proponents, but, now the officials have confirmed the affirmed potential cause for concern. On their twitter handle they wrote:

“We are now working with Slow Mist and many others in the crypto community. The exchanges and pool should increase their confirmation time.”

There is still controversy on the duration of the attack. As per the reports of Blockscout, the time of blocks’ reorganization is estimated to be around 02:00 UTC and 05:00 UTC. The block explorer Bitfly (Etherchain) said in a tweet:

“The ongoing potential 51% attack on Ethereum Classic led us to increase the block confirmations on our ETC mining pool.”

Cody Burn, dev advisor of ethereum classic said to a crypto news outlet that the reorganized activity could not be categorized as a 51% attack but a client-local phenomenon – a selfish mining attack.

In his tweet, he added:

“…the entire Ethereum network doesn’t ‘reorganize’ simultaneously. Therefore, it is more likely that someone has found the Coinbase ETC node and covered them.”

He further suggested that the companies who are providing services for ethereum classic should take necessary steps to safeguard their users on the platform. According to him, the best action for businesses and exchanges is to increase the number of confirmation blocks to more than 400 blocks.

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