Two Mining pools, BTC.com and BTC.top, have allegedly carried out a re-organization of the Bitcoin Cash [BCH] chain to reverse two malicious transactions. It was made possible by carrying out a ‘51% attack’ attack on the blockchain.
The move has sparked a controversy in the cryptocurrency community because of concerns over Bitcoin Cash’s [BCH] decentralization and governance model.
What Really Happened?
Bitcoin Cash [BCH] has a reserve of coins in an ‘anyone can spend’ wallet, which was created during the first Bitcoin [BTC] hard fork. Contrary to its name, the assets in the wallet are unspendable according to the code. However, during the recent update on BCH on 15th May 2019, a bug was able to exploit this unspendable BCH. A couple of miners transferred these coins to their wallets.
The two pools then carried out the attack by reversing their transactions and recording two of their own to restore order in the Bitcoin Cash [BCH] ecosystem. Hence, the 51% attack was carried out in good faith.
It is highlighted by a Twitter user, Guy Swann, who said
#BCH /#bcash was hit by 51% attack from just 2 miners, http://BTC.TOP & http://BTC.com – & no one seems to be talking about it. He also mentioned that, “Due to low hash rate of the network, http://BTC.TOP actually controlled over half (~54%) of #BCH hash power…”
However, as the favorite quote from Spiderman, ‘with great power comes great responsibility,’ it exposed a harsh truth about the Bitcoin Cash [BCH] cryptocurrency. The degree of decentralization in BCH is less than one assumes.