Ethereum Classic (ETC), the smaller spinoff of Ethereum, is still reeling from the 51% attack that was carried out on its blockchain, resulting in the theft of more than $1 million in ETC tokens and an almost 10% erosion of the cryptocurrency’s value.
Reactions to this attack have been pouring in from various quarters, including the temporary ban placed on various activities involving ETC by major cryptocurrency exchange platforms such as Coinbase and Kraken. Industry experts and institutions have also weighed in on the matter, how this incident could affect the public perception and adoption of blockchains, and how incidents like this can be prevented in the future.
In an email conversation with Bloomberg, venture capitalist Kyle Samani claimed that the success of the attack on the blockchain demonstrates that the Ethereum Classic blockchain has essentially failed at one of its most basic responsibilities as a decentralized cryptocurrency network.
I’m surprised that ETC is not down 50 percent or more. The most probable explanation is that the biggest holders store their assets off-exchange, leaving them unable to transfer them back and sell.
However, Charlie Lee — the founder and developer of Litecoin — seems to believe that with this attack, the Ethereum Classic blockchain is only exhibiting one of the inherent characteristics of a blockchain. In a tweet earlier this week, Lee stated that every decentralized cryptocurrency is susceptible to attacks of this nature, and any blockchain that demonstrates an immunity to this kind of attack is essentially centralized and permissionised.
This is a thought-provoking observation. 🤔
By definition, a decentralized cryptocurrency must be susceptible to 51% attacks whether by hashrate,