Bitcoin SV is slowly dying after 51% attack, a number of exchanges disabling BSV deposits and withdrawals
Bitcoin SV remains a hot topic after cold storage provider Gravity recently suspended both withdrawals and deposits from BSV. According to the update above Twitter This is because liquidity providers are suspending access to token liquidity.
“Urgent announcement: Our liquidity providers have just announced that they will also suspend access to BSV liquidity until further notice due to the blocking of BSV deposits and withdrawals by some major exchanges. Neue Zeitung”.
However, it’s worth noting that at the time of writing, Gravity is taking deposits and withdrawals to BSV under. has restored notification Latest.
The reason for this step is that several large exchanges have stopped deposits and withdrawals from BSV since the beginning of July. Huobi Global was the first to do this, citing the token’s recent wallet upgrade which helped increase the in-doubt transaction limit from 25 to 1,000.
Huobi Global was followed by exchanges like OKEx and Bittrex after the Bitcoin SV blockchain suffered a 51% attack. The network was recently exposed to an illegal block reorganization attack. This action could allow attackers to double BSV coins. The vulnerability was discovered when the network’s infrastructure team was conducting regular surveillance audits on August 7th.
After the attack, Dash’s Twitter account was tweets that the Bitcoin SV chain should have protective measures such as chainlocks, similar to how implemented in the Dash network.
“To prevent such harmful block refactoring, BSV should implement chainlocks that Dash pioneered (other projects like Firo also use), which makes reorganization impossible. Improve or Die ”.
in the to explain Following the Bitcoin Association, the address that carried out the attack was identified and this address has long been associated with other malicious attacks on various Bitcoin chains.
“The Bitcoin Association has contacted the exchanges directly about illegal activity, advising them to freeze deposits from any address involved in their illegal double spending.
The BSV network performed its first halving in April of this year and reduced the block reward from 12.5 to 6.25 BSV. After that, the hashrate decreased by 50% from an average of 2.39% to 1.19%. This is because many miners left the network when the price of BSV did not rise as forecast and their mining revenues cut in half.
Bitcoin SV Mining Difficulty Chart | Source: Bitinfocharts
Although the hashrate recovered in the wake of greater market consolidation, it collapsed again in May and is now falling steadily. At the time of writing, the hashrate is 0.413 exahash compared to bitcoin’s 93 exahash.
Therefore, as can be seen on the graphic, the mining difficulty also decreased significantly at the same time. From its peak in May 2021 at 168 G, the difficulty drops to 58 G. In addition, the number of nodes in the BSV network is surprisingly small compared to the BTC chain. This has resulted in more than 69% of mining capacity being controlled by a single pool. This pool, called Taal, shared 63.9% of the 1000 blocks on the network.
Taal has captured over 51% of the Bitcoin SV network’s hashrate
According to statistics, a miner named Taal currently controls more than 51% of the Bitcoin SV network’s hashrate. As of Thursday, the Taal mining pool accounted for more than 75% of the BSV hashrate of the overall distribution to the five pools and 15.28% of the hashrate of the unknown pool.
In addition to Taal’s hash power, the other pools that are mining the BSV chain include Viabtc, SBI Crypto, Btc.com, F2pool, and Svpool, at least as of today. During the week, other well-known pools such as Solomining, Hathor and Matter Pool also found BSV blocks.
Meanwhile, the Coingeek streaming channel is also focusing on Bitcoin SV news and the BSV ecosystem to discuss about the situation. Host Kurt Wuckert jr. responded to criticism of the BSV chain. Cackles jr. given same statement the day before on Twitter.
“51% attacks don’t really exist without an exchange-based Bitcoin economy. Huobi and Okex have stopped making withdrawals / deposits but they will be ready to go again. Honest knots reject the malicious block, and subsequent attempts will lead to nothing. Everything will be back to normal soon. “
Regarding the 51% attack discussion from the Coingeek online channel video, Bitcoiner Theo Goodman was not convinced by the host’s explanation. If there is a line tweets “Look at that, Kurt explains what’s going on at the beginning,” Goodman reply:
“He explains it, but then adds a few comments. There is no 51% attack and from 9:14 onwards he contradicts himself in matters of faith. Then he basically said don’t worry unless you’re in the infrastructure. “
Bitcoin SV is over?
Given this poor network security, BSV’s price fell more than 73% in April compared to ATH and has steadily fallen since halving this month, losing 2% and over 25% in the past 24 hours. in the last 24 hours of the month.
BSV price table | Source: Tradingview
While the network has taken a zero-tolerance stance on illegal activity, it also appears to be changing from within. The danger of BSV will continue to be an obstacle if the right scaling solutions are not used and the infrastructure is not set up to prevent such attacks. The blockade of the top exchanges only dampens user sentiment as both exchanges and investors will be cautious about getting back into the asset.
Forked blockchains are particularly susceptible to such attacks, as has already been seen with Bitcoin Gold.
The crypto community seems to like this move. In fact, while many people do many suppose i think It is a long time coming, others believe that it is the dead end of the blockchain.
“Something seems to be going on with the BSV. Every major exchange and now even the liquidity provider is giving up. Probably related to the 51% attack. It is interesting to see the collapse of the cryptocurrency in real time. People can’t even sell. Deposits are deactivated everywhere. “
According to AZCoin News