Sign Up Now!

Sign up and get personalized intelligence briefing delivered daily.

Sign Up

Articles related to "difficulty"

The Verge Cryptocurrency is currently being hacked again. Here's how (self post)

  • The target block time for Verge is one block every 30 seconds, and the difficulty of mining blocks is constantly being adjusted based on the current rate of block confirmations; if more people decide to devote more mining power to generating Verge blocks, and more blocks get mined faster, the protocol increases mining difficulty and block submission is throttled.
  • And this is what the hacker did — examining the blockchain data reveals that throughout the duration of the hack(s), every other block was submitted with a timestamp roughly one hour before the present time, tragically confusing the protocol’s mining adjustment algorithm.
  • So here’s the deal: the only way for this to properly function — and “properly functioning” in this case includes maintaining 30 second block times, keeping all five algos economically sound for miners, and preventing one of the five algos from dominating (which would render the whole experiment pointless) — is to have each algorithm have its own difficulty parameter that gets adjusted independent of the other four.

save | comments | report | share on