Blockchain, the tech underlying cryptocurrencies, is a pretty secure system. But as cryptocurrency prices rise, hackers have more incentives to get creative in their malicious attempts to hack the industry.
It’s been found that some of the smaller cryptocurrencies are using the same mining algorithms as the big cryptocurrencies.
Among those smaller cryptocurrencies is Ethereum Classic (ETC). This cryptocurrency uses the same mining algorithm as Ethereum (ETH) but it does so with a lower total hash rate on the network. Apparently, this makes ETC more susceptible to hack attacks.
According to researchers of Brazil’s FECAP University, it would only take $1.5 million to launch a hack attack on the ETC network and earn a quaint profit while doing so. $55 million could totally bankrupt the cryptocurrency giving hackers a whopping $1 billion in profits.
While the top 10 cryptocurrencies have large hash rates that make hack attacks impractical, smaller cryptocurrencies, however, need to have developers update hashing algorithms to further protect them from hack attacks. Other solutions include Proof-of-Stake protocols and sharding.