Ethereum Classic Market Update: Network suffers a 3,693 block reorg, ETC/USD goes up after two bearish days
- Ethereum Classic has experienced a chain reorganization of 3,693 blocks.
- The ETC team noted that the reorg was caused by a miner who lost internet access while mining.
- The network will continue to move ahead on the chain, which includes the 3,693 blocks.
- ETC/USD recovers after two bearish days.
Several entities associated with Ethereum Classic (ETC) informed the community that the network recently suffered a reorganization (reorg). In what was first thought to be a 51% attack, 3,693 blocks on the network were “reorged,” causing a miner to process all the blocks in 12 hours.
Soon after spotting the reorg, Binance announced that it would suspend all ETC deposits and withdrawals.
Earlier today, @eth_classic $ETC, experienced a chain reorg of 3,693 blocks.
— Binance (@binance) August 1, 2020
Our alert system caught this immediately and automatically halted withdrawals and deposits.
This looks like it may be a 51% attack.
We will update you as things unfold.
After investigation, it was found that the event was a non-malicious mistake made by a miner with a lousy internet connection. The ETH team noted:
It could be that the offending miner has lost access to internet access for a while when mining, which led to a 12 hour mining period and about 3000 blocks inserted. On the first 2000 blocks, there was 1 miner and a total of 5 transactions.
The developers clarified that these transactions will be resubmitted to the mempool if they have failed. They reassured that ETC holders have nothing to worry about. Ethereum Classic will continue to move ahead on the chain, which includes the 3,693 blocks.
ETC devs recommended miners to continue mining on the split chain as the consensus rules intend.
Continue mining the chain as-is (chain is currently following the heaviest work which includes the about 3000 block inserted). This is the recommended option as the chain is following Proof of Work with the longest chain as intended.
ETC/USD daily chart
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The reorg triggered two full bearish days, however, the bulls look to recover the price. ETC/USD has gone up from $7.1583 to $7.212. ETC/USD bulls wil next face resistance at $7.412 and $7.64. $7.07 (SMA 200), $6.94, $6.74 (SMA 20) and $6.63.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
