(Newswire.net — July 20, 2021) — The recent malicious block withholding or reorganization attacks on the BSV network illustrate the urgent need for law in blockchain, and Bitcoin Association, the Switzerland-based nonprofit industry organization advancing the global adoption of the BSV blockchain, is setting the standard others should follow. The Association, together with its developmental branch, the BSV Infrastructure Team, has responded remarkably to the attacks, resulting in no BSV lost or stolen from any user.
“The most obvious reason to attempt a block withholding or re-organisation attack would be as part of an effort to double-spend and defraud—that is, spend the same BSV tokens several times by manipulating the records of the blockchain. When these types of attacks occur, it is generally exchanges—which tend to hold significant token liquidity—that are targeted. However, it is important to note that to date, neither Bitcoin Association, nor the Bitcoin SV Infrastructure Team, nor any exchanges with whom we are in contact, have received any reports of anyone claiming to be a victim of a double spend,” the Association said in a follow-up public statement composed of answers to the most frequently asked questions about the malicious attacks.
The recent attacks against BSV blockchain (just like against any financial system) are illegal. We respond accordingly.@BitcoinAssn & @BitcoinSVNode teams have been working to investigate, implement response measures, talk with exchanges + more.
UPDATE: https://t.co/RphcT8OcmF
— Jimmy Nguyen (@JimmyWinSV) July 15, 2021
Block reorganizations may occur naturally within the BSV system as they are “used to align participants and nodes on the network.” However, due to the BSV network’s efficient detection tools and professional approach to blockchain, the malicious nature of the block reorganizations were quickly detected and dealt with accordingly. On top of reactive measures, the network is also constantly being protected and monitored for possible future attacks.
“This includes coordinating with miners and transaction processors on the Bitcoin SV network to implement both reactive and preventative measures—including fork detection tools that enable ecosystem participants and partners to move expeditiously in the face of attacks. Since these measures have been initiated, there have so far been no further attacks on the network,” the Associated stated.
These types of malicious attacks do happen in the blockchain space – earlier this year in March, the Bitcoin Cash ABC (BCHA) network was also targeted. It is possible that the March deep block reorganization attacks on BCHA were instigated by the same unknown miner who, the Association believes based on its investigation, is impersonating a Hathor miner who goes by the same “Zulupool” handle.
“Just a few months ago, an actor also using the same ‘Zulupool’ moniker carried out a deep block re-organisation of the Bitcoin ABC (BCHA) chain. While we cannot independently confirm that it is the same party who is behind the recent attacks on BSV, the BCHA chain incident had similarities in methodologies and characteristics with the reorganization attacks on BSV, and also used the same Zulupool name; these factors strongly suggest it is the same actor,” the Association revealed.
These malicious attacks are highly illegal, and these recent events only highlight that law in blockchain is crucial to the effectiveness of a network—both in preventing and mitigating these types of criminal activities. The Bitcoin Association has set an example by implementing zero tolerance for illegal attacks by conducting an extensive investigation, collecting and documenting evidence and filing a criminal complaint.
“Blockchains cannot themselves prevent bad actors. But by working together with exchanges, miners, transaction processors and other industry participants, collectively we can facilitate a safe and trusted environment for users of the Bitcoin SV network. There have been prior attacks on other blockchains, and it is time that industry participants demonstrate that such attacks are in fact illegal—just as attacks against other financial systems are illegal—and will be met with legal enforcement action,” the Association cautioned.