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Attack on Ethereum Classic
Charlie Lee Weighs in on ETC debacle
What happened with ETC?
Despite an official denial from the team, all signs indicate that Ethereum Classic suffered from a rare 51% hack earlier this week. In a nutshell 1 person or group was able to control 60% of the mining power, which gave that person or group the ability to double spend. This is not the 1st time Ethereum Classic has run into problems with hack and exploits.
On Twitter, Litecoin's founder, Charlie Lee weighed in on Ethereum Classic's troubles:
"This is a thought-provoking observation.
By definition, a decentralized cryptocurrency must be susceptible to 51% attacks whether by hashrate, stake, and/or other permissionlessly-acquirable resources.
If a crypto can't be 51% attacked, it is permissioned and centralized.
Charlie Lee [LTC]"
A Quick Breakdown
According to Lee, 51% hacks are going to be a problem for any truly decentralized cryptocurrency. It is not something that can be patched or easily fixed with decentralized cryptocurrencies, due to the structure of blockchain technology. In between the lines, one could interpret his message as a sign to avoid small & niche cryptocurrencies as they have a greater chance of being exploited.
Despite the alleged hack, the price of Ethereum Classic has not been deeply affected. It is currently trading at $5.08, which is much higher than its price in December. One can speculate that Ethereum Classic might need to fork in the future, to avoid further exploits despite the team's promise to never upgrade their code.