Ethereum’s Blockchain Just Split in Two
Nearly half of Ethereum’s nodes are running out-of-date software resulting in a hard fork that could cause double spends.
Ethereum’s blockchain has split in two from a bug in a previous version of the chain’s main node software. The software, known as Geth, makes up roughly 75% of Ethereum nodes and as much as 73% of Geth nodes have yet to update to the new version to fix the bug.
Don’t miss out on how smart money is playing the crypto game. Subscribe to our premium newsletter - Crypto Investor.
This means that around 50% of Ethereum nodes are running a split-off chain with out-of-date and bugged software that could allow double-spends.
Not only that but other chains that are compatible with the Etheruem virtual machine, like Polygon or the Binance Smart Chain, could be exposed to the issue as well.
Fortunately, this seems to have had little impact so far as most of the miners had already switched to updated versions of Ethereum software. It seems that it is mostly non-mining nodes that have yet to make the switch to the new version of the software.
The Ethereum Foundation security lead, Martin Swende, said “A consensus bug hit #ethereum mainnet today, exploiting the consensus-bug that was fixed in geth v1.10.8. Fortunately, most miners were already updated, and the correct chain is also the longest (canon).”
In other words, the “correct” (updated software chain) is winning, but those who are making transactions on the out-of-date and bugged chain may have their transactions effectively reversed when they update to the correct chain.
This means it is possible that individuals, or even some exchanges, that have yet to make the update and are making transactions are relying on a small amount of out-of-date miners with very low hashing power. This low hashing power could put them at risk of a 51% attack and double spends.
The only obvious solution to this is that all nodes update to the new software client though some may be apprehensive if they don’t want to undo transactions they’ve made. Ideally, very few transactions have been made on the forked chain and most are willing to simply update their nodes.
This story is developing.
Most used blockchain Go Ethereum averts crisis after software flaw is fixed
A flaw in the most popular used to verify transactions on the Ethereum network nearly triggered a crisis for the world’s most widely used
About half of the Ethereum ecosystem split into a separate chain after a bug in the Go Ethereum, or Geth, effected users who hadn’t implemented an update meant to fix the mistake, said Maddie Kennedy, a spokesperson at the research firm, Chainalysis.
“This could’ve been a big problem, but it isn’t,” Kennedy said.
About 75% of all users on the Ethereum network utilize Geth as a node to mine the blockchain’s native token, Ether, and to create that runs functions such as decentralized applications.
At its worst, the split – or fork – could have caused a so-called double-spend attack where the same Ether would have traded twice during any transaction or trade, according to the news site Decrypt. This would’ve created counterfeit currency and possibly a sharp drop in its value.
Fortunately, most traders using Geth swiftly upgraded their systems, allowing most of the to remain on the primary network, instead of pivoting to the forked version, said Kennedy.
While the parallel network still exists, it will eventually disappear as more users of Geth upgrade their systems, she added.
Ether rose for the first time in four trading sessions during New York hours, gaining about 4.6% to $3,272. The second-largest cryptocurrency by market value after Bitcoin has surged more than 300% this year.
London burning! 100,000 ETH up in smoke after Ethereum upgrade
As Ethereum 2.0 begins to materialise following the EIP-1559 upgrade, a jaw-dropping $315 million of ETH has been burned by the new mechanism, it has been revealed.
In just the past week, the deposit contract addresses received a monumental 50,000 Ethereum (ETH) – valued at $155M – representing a significant rise in the number of interested investors.
This could, in part, be attributed to the extension of Ethereum 2.0 staking on popular Ledger devices.
The Ethereum 2.0 staking contract recently became the single largest Ethereum wallet, overtaking Wrapped Ether (WETH).
The total ETH staked with Ethereum 2.0 now stands at 7,150,594 ETH, which is worth a staggering $23bn.
Since the implementation of the London Hard Fork’s EIP-1559, the network has burned in excess of 100,000 ETH worth more than $315m.
The London Hard Fork event, alongside the highly-anticipated introduction of EIP-3554 at the start of August, drove a surge in network usage and marked the first noteworthy rise in Ethereum chain activity in more than four months.
Many attribute the 9% rise to EIP-1559, which has simplified and eased the transactional costs (gas fees) charged by the network – alongside introducing a burning mechanism to deflate the price.
What is London Hard Fork and EIP-1559?
London hard fork is a vital stepping stone for the network, ahead of the massive shift from proof-of-work (PoW) to Ethereum 2.0’s proof-of-stake (PoS) technology aimed at saving the network from near paralysis.
A hard fork occurs when there is a major alteration to the protocol of a blockchain network that results in a divergent split between the old protocol and the newer version. In a hard fork, miners must choose whether to continue validating the old blockchain or the new one.
The London hard fork was the latest update, and incorporates five new Ethereum Improvement Proposals – (known as EIPs) – which are all temporary until the permanent Ethereum 2.0 update.
Story continues
EIP-1559 was an exciting proposal for the introduction of a ‘base fee’ that tracks gas fee prices across the entire Ethereum network in order to ensure accurate gas fee predictions for network users, while also introducing a deflationary measure that burns transaction fees.
More crypto news and information
If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.