Exchanges Could Fight Hackers by Renting Mining Power

Bitcoins and other crypto-currency are fast gaining cognizance considerably in the world of finance and investments. Based on a particularly secure technology of block-chain development, the crypto-currency industry is flourishing rapidly and gaining wide-spread acclaim. Users are joining the pool in millions and are adopting the volatile altcoins to increase their flow of wealth and investment capacity. The peer-to-peer network system is also a great point of benefit is it ensures all transactions are carried out safely. The system may not be completely fool-proof as recent news of hackers disrupting and draining altcoins of considerable value has rocked the market.

Researchers’ solution

Due to such an event, researches have been developing new ways to fight back against hackers with novel new techniques to save the sanctity of a crypto-exchange. One of these acclaimed researches has conceptualized a technique in which the original users could counter-attack by renting enough hashing power from external sources. This new technique is not advised by many experts, but with an already few ways to fight back against no-good virtual thieves, it is bound to be considered as a possible course of action when no other option remains.

Details of the Attack

The researcher outlined this approach by conceptualizing a method where the time required to finalise a transaction can be used to un-hack your exchange. Since six verifications are needed for as many blocks before an exchange has been finalized, this time can be exploited by using rented mining power from virtual external sources that can tilt the scales in favour of the affected and making the hacker lose all its efforts.  In this procedure, they rented hashing power helps to establish an altered network of blocks which can be later accepted as the correct version of the transaction.

Drawbacks of the Solution

While a leading investor had tried to use this solution to avoid other million-dollar transactional trouble he had previously incurred, he had been seriously criticized by the crypto-circle over his plan-of-action. The reason behind such a drastic response could be attributed to the fact that such a solution is only useful when the figure of altcoins involved is considerably low. The lead designer of the approach himself confirmed that such a technical approach could not reverse the damage done to a bigger crypto-currency such as bitcoins. It is more apt for smaller transactional coins that have more stream-lined users.

The novel method of counter-attacking hackers was recently discussed by a group leading experts of the crypto-circle with certain emphasis on its inability to help million dollar exchanges. The pain-staking and expensive procedure of renting a considerable amount of hashing power and then using it in the last one hour of the transaction is not a completely fool-proof plan when the cost of counter-attack threatens to exceed the actual amount involved in the original transaction. It is advisable to calculate the figures properly and beforehand, so as not foolishly spend more.

While it may not be a completely concrete solution to the problem, it is worth noting that it is still a solution to a dilemma that has been new to the relative financial industry. Thus it is important to keep an accurate record of a technologically-sound process that can help further along the line as a blueprint to build more complex and accurate solutions to a problem that is continuously evolving with the market itself. With its high level of security and transparency in dealings, crypto-currency did attract customers in the thousands to a volatile market of price fluctuations, but it would not have been as fun had it been totally perfect.

Leave a Reply