Digibyte, a cybersecurity and authentication-focussed cryptocurrency, is seemingly near the notorious 51 percent attack. If executed, the altcoin would follow Bitcoin Gold because the second main blockchain attacked by majority mining in 2020.
Metrics elevating questions
A post on r/cryptocurrency, the favored subreddit dedicated to digital property, on April 27 first introduced consideration to sure hashpower discrepancies on the Digibyte blockchain. The altcoin makes use of 5 mining algorithms for producing blocks and offering rewards to miners. However two of these, particularly, present large hash charges because the post’s author tabulated:
Digibyte’s Skein and Qubit algorithms are attracting 587 Th/s and 391 Th/s hash charges respectively, accounting for over 40 % of the blockchain’s mining inputs. The unusually large and limited-to-two algorithms hash enter signifies few teams may very well be behind the surge.
Whereas the identification of the mining group/s behind the big enter stays unknown, it opens floodgates for speculations a couple of doable 51 % assault on Digibyte.
Theoretically, if the group/s had been to hire hashpower by way of cloud-based mining Nicehash, they may execute a 51 % assault on Digibyte at a value underneath $3,000. Attackers might reverse and double any transaction at will, resulting in a extreme compromise within the blockchain and limitless funds generated in $DGB.
Can Digibyte’s “multishield” keep away from an assault?
In 2015, Digibyte’s builders acknowledged the community is protected towards nefarious assaults by their “MultiShield” issue adjustment. This system ensures a “truthful 20 % distributed between all 5 algorithms” and any “sudden inflow” of hashpower is detected. Nonetheless, Litecoin creator Charlie Lee criticized the reported safety in 2018:
Here is a fast evaluation to point out that DigiByte’s 5-algo system is not safer than Litecoin. To match the entire DigiByte community, it prices about $27MM and $1k/hr to assault. However since world hashrate for every algo dominates DigiByte’s, it may possible all be rented for <$5000/hr. pic.twitter.com/tRsaVlNTt7
— Charlie Lee [LTC⚡] (@SatoshiLite) May 31, 2018
Within the absence of extra safety measures, Lee indicated an entity might merely and cheaply take over all particular person algorithms and trigger a 51 % assault. Mathematically, any Bitcoin mining group might assault Digibyte with minimal sources, and pocket as much as $20,000 a day on block rewards at present costs.
Miners could have dumped a number of hundred thousand
An inspection of addresses on Digibtye’s explorer reveals a couple of entities have pocketed monumental quantities of $DGB prior to now few weeks, as per tackle wallets here and here. At present buying and selling costs, the mined $DGB works out to a cumulative $581,000 as per knowledge on CryptoSlate.
Nonetheless, the foreign money was price effectively over $850,000 a couple of days in the past, which means a major quantity of mined DBG has been dumped on the retail market even because the broader crypto market rises. A single entity is controlling 8 percent of Digibyte’s Qubit algorithm and reaping $7 each jiffy at present costs.
DigiByte, presently ranked #39 by market cap, is down 26.59% over the previous 24 hours. DGB has a market cap of $155.9M with a 24 hour quantity of $25.08M.
Chart by CryptoCompare
DigiByte is down 26.59% over the previous 24 hours.
Posted In: Altcoins, Analysis, Mining, Price Watch, Rumors
