Cryptocurrency-centric ZenCash (ZEN) is the newest Altcoin to suffer a 51% attack, the developers of the project confirmed over the weekend.
According to an official statement, a malicious miner successfully launched the attack on 22 June at around 10:43 pm on June 2, as well as at least three double issues against the cryptocurrency network.
To implement an attack at 51%, an attacker must acquire the majority of the total hashrate of a cryptocurrency network, allowing him to rearrange the blockchain and force him to accept fraudulent blocks.
In general, a pirate will monetize a 51% attack by a double attack. This is accomplished by depositing coins on a cryptocurrency exchange while signing a transaction that sends the same coins to a wallet in their control. Once the purse has credited its account with the funds, it will be deleted in Bitcoin or another cryptocurrency and this money will be taken from an external portfolio.
In the meantime, the attacker uses his majority hash power to exploit a major blockchain fork that is growing faster than the one accepted by the network. This will allow them to cancel the transaction that first deposited their coins on the stock market and instead move the funds into another portfolio of their control.
Money was deposited into a cryptocurrency exchange during this transaction, but became an orphan after the attacker reorganized the blockchain. | Source: explorer.zystem.io
After bleaching the monster, the attacker reorganizes the official blockchain, forcing them to accept the longer crotch, which has accumulated more Work PoW. As a result, the funds are removed from the stock market portfolio and appear in the portfolio of the attacker.
In this case, the attacker executed at least three duplicate outputs, one of which reorganized the blockchain of 38 complete blocks. Overall, the attacker launched with more than 23 152 ZEN of these exploits, which at the time of the attack had a value of about $ 700,000.
As reported by Blockinsider, Altcoins’ litany has been hit by 51 percent in recent weeks and other similar network attacks, including Bitcoin Gold, Monacoin and Verge (at least twice). The cost of a 51% attack on many Altcoin networks are surprisingly low, especially since the hashpower can be hired easily by so-called “cloud extraction” companies.
ZenCash – with a market capitalization of $ 106 million – should not be confused with Zcash, the 25th largest cryptocurrency with a market capitalization of around $ 950 million. However, both projects come from the same family of cryptocurrencies, since ZenCash is a fork of ZClassic, which itself is a fork of Zcash.