The growing cryptocurrency space continues to be admonished by all parties involved. With everyone including traders, investors, analysts, and now even scammers, who are taken advantage of security flips at the detriment of the Network, look to make the most of the booming ecosystem.
The frequency of these scams and security breaches is now alarming, as almost every week does not pass by without seeing news related to crypto scamming or network breach. The latest of which is Firo Networks, who announced they had suffered a network breach known as a 51% attack.
This is the first of its kind for the privacy network
The Network, formerly known as Zcoin, in a news post on social media Twitter, has come to announce that it was under 51%. This attack- 51% attack, refers to a blockchain attack by some miners who will gain unauthorized access to the Network and altercate services like payments. These attacks mostly lead to losses for the Network involved in it since the attackers can take full autonomy of events like payments and divert transactions.
The security breach is the first of any kind for the Network known for utilizing cryptography to provide value added privacy focused blockchain services to its clients. In the post, the Network claimed that it became aware of such attacks when its users started noticing the reversal of previously confirmed transactions on the system.
With more than 300 transactions in this category, Binance CEO Changpeng Zhao believes that the attackers must have gained access to re-organize the blockchain’s activities. The suspicions behind attacks like this are always centered around a network security breach or a programming code error. The developers of the Network have disagreed after investigating the whole scenario.
Lack of Chainlock could have been responsible for the attack
In their report, the developers feel like the Network lacking a Chainlock is the most likely reason why the attack was possible in the first place. The role of Chain locks is typically to provide two-factor authentication for networks. According to the developers, if Firo had one, they would never have to share in the experience of a 51% attack.
The developers have also confirmed that they could stabilize the situation and are already working to put things back to place as quickly as possible. The company post on Twitter confirmed that it had not been able to ascertain the extent of financial losses accrued in the process, as its focus is on coming back as soon as possible.
51% attacks look like what many blockchain networks need to start worrying about, as the Ethereum Classic suffered around three of these attacks last August. The Network who had lost about $500,000 when it suffered a similar faith in January 2019, is not new to the attacks and, according to reports, has put measures in place to avert future troubles.