Do Ethical 51% Attacks Help or Hurt Cryptocurrency?



hey guys what I'd like to do in this video is talk about the issue of ethical hacking now ethical hacking is something you don't normally see associated with cryptocurrency but a few days ago someone called geocode attacked back coin private with a 51% attack now it seems like that the purpose of that attack was to raise awareness of the issue and just demonstrate how easy it is to attack a coin you could have forked the chin but it doesn't but why want to do in this video is talk of it less I'm gonna show you the news story and then you know give you my thoughts on it and you know raise the issue of whether this is a good thing or a bad thing so thanks to Jonathan for posting a comment about the study I did see a comment about this a few days ago on 12 ah I don't fall out the story because I remember some people were talking about the stream when was going on now this attack was you know on back coin player I haven't seen back coin private actually tweet about us they haven't got a blog post that anything you know official coming out talking about this attack and I mean I I know it's one of those things they don't for nothing actually bad happened in the end I still would have liked them to have come out with some sort of a official post or tweet or something about it but hey they don't so this is a story so let's get through this story and maybe you know we can talk more about with us a good thing and a bad thing once we understand what actually happened so this is the the the article racquel livestreams 51% attack on Bitcoin Plata on October 13th ethical hacker geo called follows through on his promise to 31% attack an old coin eventually sailed on back coin private now between private aim is a coin II say hold on because it he tried to attack another coin I think it was Einstein anymore something that's mentioned during the bottom the article and by the you know can up increased our hospital to defend I think that's what they did so we sailed on back coin private so it says here they promised a bid 51% an attack a no point to prove how easy it was I did dead but their team did not prove they did not run as smoothly as he would have hoped over 750 of years turn done now let's all say chin here as you talking about the report button and basically when when you're streaming on a you know if I'm seeing streaming on YouTube or twitch it's very easy to for someone to just collect report and if it's a lot of people reporting something which as you would expect would happen and a live stream you know when you're doing something malicious then it's going to be hard for that stream to continue because the the company the streaming company would just shut you down and now it's what happened the first time you started streaming shut down it says here that when he returned on stream me half an hour later it lasted a lot over 15 minutes before the same thing happened again thankfully by that time he had done enough to demonstrate has attacked an action so if you go down here a he'd intended to a 51% attack Einstein an iam I think that so he put a new start EMC to when they think Amy performed the feat on Saturday October 13th Arava he discovered this hash tree had soared 15-fold to 1.48 hash per second governor weeks knows the EMC to community health what they attack by acquiring huge amounts of hash bar so they had held that this guy was while stream as a guy but they adhered that that this person was going to attack them so they increased the harsh power to defend against that makes sense Bitcoin private was selected instead I'm and he connected to our back coin private Manning Perot using a couple of hundred dollars worth of rented Tosh per he'd purchased from nice hash with back a with Bitcoin and so geo code came unstuck as members of the Bitcoin private community fought back possible after he accidentally leaked his IP address that's why I saw the tweet of about double D the fact he was trying to demonstrate an attack but he'd left his IP address on the stream and other people started attacking him so has personal computer and at the second attempt do you call dominated back when privates hatchery producing a steady 10 mega Souls per second versus the rest of the neck networks X mega Souls per second he soon began to create the longest chain of blocks and had he persisted he could have fought the Bitcoin private chain and the event the second stream died and do geocode elected to Wayne things down and save some checks from next time the evening started as an exercise on the ease of controlling law harshly prefer what coins at nd there's a demonstration on the knee for censorship resistant platforms where as a whole doesn't to be aim update on the sheet on the stream got banned from to streaming platforms very very quickly excuse me Fela quickly I'm going to try and find apartment where that can be assured report spamming won't work F not will just post the value on YouTube but attack wise we got approximately 70% of Bitcoin privates network and it was about to fork no he says he was about to forecast I'm hoping that means that you know he could have but he doesn't I don't know so that's the gist of the story he you know he decided to attack anything any um they they decided to increase the heart rate fifteen full so they spent the money to defend against art because it was a planned aim you know it was like a schedule stream they defended against that back when private didn't have that luxury so because you know we just said right we'll do a back wing private instead and he could have fought the chain know that our websites out the other demonstrate that's already in demonstrate how easy as to attack them no it's this article starts off scene he said you know we wanted to prove how easy it was that I'll babysit oh they're like this and we are you can see this table here but see this you know the coin market cap algorithm hash rate one over attack cost makes hashable and you know for alloy on back coin five hundred thirty thousand dollars but look at that baked coin 606 dollars einsteinium eighteen dollars litecoin cash ninety one dollars back coin interest thirty two dollars thus as a major issue now I've talked about this before I've showed that I think I've showed this website before now like Jim perhaps in a dedicated video as well as quite surprising how how little it costs to buy hospira from a service like nice hash and just throw a coin and you know just take over the network and then you can fork it if you want that's you know these kind of tables do demonstrate that but this guy you know geo code has went one step further he wants to show you how easy it is to do that is that a live stream a beta and I'm kind of torn by dust if I'm honest as far as whether this is a good thing or a bad thing because ideally what you know if someone as an ethical hacker these are really trying a target Koine see a lesson I try to attack your coin there I managed to get a day to you know get most of your network a story very easily only for a few hundred dollars I recommend that you do something about it but after you to go to a coin privately and see that were they going to do they're going to see well yeah you we know that hari is low right now but there's not much we can do about this because the place the coin is law or trying to market a coin etc we know that a lot of coins you know but simply because of maining profits or because of the coin not being worth all right now we know that they can be attacked very very easily no you know as far as raising awareness goes what does what does that really mean does that mean that if you get 93 dollars you should attack by coin private does it mean that they need to fork does it mean you know all of these coins have to do something it did fork they need to change the previous take they need to say a master knows they need to do something else I don't know I I can understand that if you go to a cryptocurrency and you go to the developers and you go to them privately and you see a lesson you need to do something about the Sahasra it's too low you're not safe I understand that but what they're going to see you know you're that you're that you know developer of a team EULA member of a team and someone says we can attack your coin for $300 then what can you do about it as far as harsh parables you really do have to fork to something that's nice harsh resistant or you know you need to implement proof of steak or mass snows or something I don't know I don't know what the answer is but as far as what he did he wanted to prove how easy it was now if you imagine that has intentions are 100 percent ethical and he wasn't trying to do anything bad then on one way what he's done is highlighted to the back coin private team that their coin is vulnerable on the other hand he shown how easy as and how vulnerable they are maybe this is going to give some other people some malicious people some ideas so as I don't know that's it's erm torn because I realized that this is something that does need awareness more people need to know about how a susceptible their coins are to these kind of attacks but I'm just I don't know where I stand on this being public maybe we do need awareness maybe we do I don't know but doing it publicly as much as it highlights it to the team and to people who who main the coin in on the coin also you know highlights it to malicious parties and perhaps demonstrates how easy as to attack a coin so I don't know I'm not trying to sound offense here a can kind of see both sides I think that and on the one hand we can we can't see I can't see the benefits for raising awareness for this type of thing and maybe we do need to raise awareness the fact that some coins aren't as secure as they think and it'd be very easy to fork them but also think that demonstrating that you can fork a coin and that you could I don't know like what does achieve does it raise the realness or does it you know make it more obviously everyone even my lashes parties that a coin can be forked I also push the strain you know I you know a for teams teams are I know I know that's being involved with the team I know how hard that as for teams to promote a coin I know that they really unless they want to manually or artificially pump and dump a coin they really don't have any influence over the place I know there can be hard to bring in menos to your community because people jump out in between different coins as well so I don't know I'm looking from a team's point of view if someone comes to me and sale us and we can attack your coin for $300 what can you do about it apart from forking to add a fan algorithm or changing your whole structure of your coin I don't know I'll put over to you guys I'm trying not a certain offense but I can see both sides an elaborate tone as to whether the the benefits of raising awareness with this kind of attack is maybe outweighed by the negative associated with is will let me know we think about it guys I'll leave a link to the article on to that website that talks about 51% attacks let me know you think about it leave a comment below I think this is an interesting topic and it's mainly something that we should all be talking about so thanks to join us then again for sharing the article with me and then I'll speak to you in the next one cheers guys

7 thoughts on “Do Ethical 51% Attacks Help or Hurt Cryptocurrency?”

  1. Good video.

    Definitely a good thing. It's all very well to view this from the coin developer point of view, but there will be people out there buying into altcoins without being aware of the risks (yes their own fault, but understandable). At the end of the day 'Geocold' did everyone involved a service by going far enough with the attack to prove his point but without actually attempting to defraud. Alt coins made by minor tweaks to the Bitcoin code need to be secure if they are taking people's money… and they will be, one way or another. Those who create them have responsibilities … they do not have to create any coin at all, and if they do, they do not have to copy code from another project. So if they do copy, they have the responsibility to think through all the implications.

    Personally I wouldn't invest in any of them, BTC and BCH are much safer from a technical point of view, and from a network effect point of view, and from most other points of view as well. I'm all for DIY in principle, but DIY money is a very risky proposition, expecially when there are various established decentralised cryptocurrencies already available.

  2. We should reward hackers that do this kind of service. This is bug hunting and in the world of open blockchains this is a necessity.

  3. In an open system this should be practiced everyday. Attacks happen all the time. By demonstrating Geocode is either destroying weak coins or making the whole ecosystem more resilient and battle tested. More open attacks earlier are better then covert attacks later.

  4. I don’t like it – everyone should know by now how easy it is based on recent history with other coins – no further need to prove it. But at the same time if a coin doesn’t have the hash support and haven’t implemented a 51% solution they shouldn’t really be listed on exchanges. That may seem harsh, but when it occurs in reality and there is a double spend someone ultimately loses some real money – some coins need take a hard look at themselves and make securing their network the number 1 priority and not just rely on the codebase they copied when they started.

  5. This only proves how Nicehash can be used to damage PoW, people are all worried about Asics but forget Nicehash.

  6. As far as I know there are not many projects that are protected against 51% attacks, komodo has their delayed Proof of Work (dPoW) and also Horizen recently added a penalty mechanism for delayed block reporting. I feel that some kind of protection should be implemented in all mineable projects. As for the live hacking demonstration, I don't think that it's a good approach to raise awareness.

Leave a Reply

Your email address will not be published. Required fields are marked *