Bitcoin Gold is the fork of Bitcoin. Also, the competition power which is necessary for running the network of Bitcoin Gold is being provided by the same minors as well. However, there are certain vulnerabilities of Bitcoin which are rising due to the smaller community size. On the other hand, some of the shortcomings of Bitcoin are already eliminated in Bitcoin Gold.
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Nightmare scenario:
One of the main problems which is occurring is that a hacker or attack has taken control of the blockchain of Bitcoin Gold. As a result, it is consistently defrauding the cryptocurrency exchanges. The current valuation of Bitcoin Gold which is in circulation is around $ 80 million. The blockchain of Bitcoin Gold is designed to decentralize. However, a single individual having a significant amount of control over the processing power of the blockchain. As a result, he or she can easily block the transactions. This type of attack is known as a 51% attack.
Problems arising out of 51% attack:
This type of attack is the reason why the bank’s, as well as financial institutions, are going slow on the usage of the blockchain. The Chinese government is also worried about this type of attack. In the larger currencies like Bitcoin, it is not possible. The number of minors, as well as the total development community, is pretty large for any single individual to take control of 51% of the mining network. In the smaller cryptocurrencies, this is indeed possible. This is the reason why many cryptocurrency exchanges, as well as authorities all over the world, are worried about such attack.
When a single miner has a control over more than 51% of the network, they can easily alter and manipulate the blocks. They can even spend the same coins twice. This is also known by the name of a double spending problem. This is a problem which is facing most of the cryptocurrencies. However, since the other cryptocurrencies have large mining pools, it is never advised. Bitcoin Gold is a small mining pool. Owing to this very reason, it has been suffering from a double spending attack.
The person who has taken control of the 50% of the cryptocurrency mining network is spending the coins. That is why the cryptocurrency exchanges are suffering from fraud.
Bitcoin Gold is not the only cryptocurrency which is suffering from such a problem. Verge has suffered from the same problem twice in the last 2 months. As a result, it has lost around $ 2.7 million. It remains to be seen whether there is any solution in the coming few weeks to this problem. Up until now, the nightmare scenario for Bitcoin Gold is playing out.
