PIVX And Other 200 PoS Blockchain Projects Affected By Vulnerability

PIVX And Other 200 PoS Blockchain Projects Affected By Vulnerability

There is an exploit that is being used on PIVX and other PoS (Proof-of-Work) chains. The bug seemed to have been fixed by PIVX in January 2019, however, it seems that the exploit is currently being used again by malicious actors. The information was released by Hackernoon a few hours ago. 

PIVX Affected By A Bug

According to this report, PIVX, one of the most popular privacy-focused cryptocurrencies in the market, has been affected by a bug that is being exploited by different participants. According to Hackernoon, BitGreen Core developers reported an exploit that became famous earlier in 2019 is being used once again by different individuals. 

BitGreen informed that there were some abnormal staking rewards going to a specific address. That showed that there was a network participant that was able to use the PIVX PoS algorithm for his own benefit. Due to this situation, BitGreen warned exchanges and suggested them to halt all deposits and withdrawals. 

BitGreen Community Leader, NaDro-JJ.py, wrote a Medium article in which he explains how this exploit is executed. 

On the matter, he wrote:

“Even with 0.01% stake in the system, the attacker only needs 5000 transactions to mine blocks with 50% apparent stake power. After the attacker has collected a large amount of apparent stake, he then proceeds to mine PoS blocks at a past time using the freshly collected apparent stake outputs.”

Basically, the bug allows stakers to obtain massive staking rewards on PoS chains that are vulnerable to this bug. There are also some accusations against the PIVX team that are not helping solve this issue. The report claims that PIVX knew about this issue and they did not fix it but rather kept quiet about it. The update is expected to be released as soon as this quarter. 

Nonetheless, the information about PIVX developers knowing about this bug and using it against the community (for their own profits) is not conclusive.

PIVX is currently the 180th largest digital asset in the market with a valuation of $19.71 million, according to CoinMarketCap. Each coin can be purchased for $0.34. In the past, PIVX was one of the largest digital assets and it was traded among the top 100 for a long period of time. The digital currency has also been in the market since 2016 and it reached all-time highs of almost $14 early in 2018. 

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