Bitcoin Gold
Bitcoin Gold launched on the 24th of October 2017 as a hard fork from the main bitcoin blockchain. The creators wanted to change how mining worked so that regular graphics cards could earn rewards instead of expensive specialized hardware. They hoped this shift would let people mine from their home computers rather than buying Application-Specific Integrated Circuits. This goal aimed to decentralize the process by making it accessible to everyday users with standard PC components.
Mashable reported that the project launch felt rushed and lacked proper testing before going live. Critics pointed out that the developers had set aside coins for themselves in what was called a pre-mine arrangement. Shortly after the public release, the official website faced a distributed denial of service attack that disrupted access for many users. These early issues raised doubts about the security and intentions behind the new cryptocurrency from its very first days.
An unknown actor executed a 51% hashing attack against Bitcoin Gold during May 2018. This breach allowed the attacker to manipulate the transaction ledger and spend the same digital coins multiple times. During the incident, approximately 388,000 BTG tokens were stolen from various exchanges. Those stolen assets held a value of roughly US$18 million at the time of the theft. The loss caused significant financial damage to investors and traders holding the currency.
A second 51% attack struck the network again in January 2020. The vulnerability exposed in that event led to an emergency software update released in July 2020. That update was version 0.17.2 and it addressed a long attack chain that had been building for several days prior. Developers pushed the patch quickly to stop ongoing exploitation attempts. These repeated breaches highlighted persistent weaknesses in the security architecture of the blockchain.
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Common questions
When did Bitcoin Gold launch as a hard fork from the main bitcoin blockchain?
Bitcoin Gold launched on the 24th of October 2017. This event marked the creation of a new cryptocurrency that split from the existing bitcoin network to change mining mechanics.
Why did the creators design Bitcoin Gold to allow regular graphics cards to mine instead of specialized hardware?
The developers aimed to decentralize the process by making it accessible to everyday users with standard PC components. They intended for people to earn rewards from home computers rather than purchasing expensive Application-Specific Integrated Circuits.
What happened during the 51% hashing attack against Bitcoin Gold in May 2018?
An unknown actor manipulated the transaction ledger and spent digital coins multiple times during this breach. Approximately 388,000 BTG tokens were stolen from various exchanges, holding a value of roughly US$18 million at the time of the theft.
How did the second 51% attack on Bitcoin Gold in January 2020 affect the network security architecture?
A vulnerability exposed in that event led to an emergency software update released in July 2020. That update was version 0.17.2 and it addressed a long attack chain that had been building for several days prior to stop ongoing exploitation attempts.
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10 references cited across the entry
- 1webCracking the Bitcoin: Digging Into a $131M USD Virtual CurrencyJason Mick — Daily Tech — 12 June 2011
- 3webNew, imminent Bitcoin Gold fork met with skepticismCharlie Osborne
- 5webBitcoin splits into two again, but owners don't get free money just yetStan Schroeder — 24 October 2017
- 8webEquihash-BTG: Our New PoW AlgorithmEdward Iskra
- 9webBitcoin Gold hit by 51% attacks, $72K in cryptocurrency double-spentDavid Canellis — January 27, 2020