Hello and welcome to the Overbit News for this week. To kick off this week's edition, we take a look at a recent significant security vulnerability in the Ethereum world.
Yesterday, the Ethereum blockchain's most popular software client, Geth, commonly known as "Go Ethereum," was subjected to a severe vulnerability on earlier versions.
According to reports, the vulnerability affected more than half of older Ethereum clients who had not upgraded to the current patch issued by Go Ethereum developers on August 24. The Go Ethereum team identified the vulnerability on August 18 but did not disclose its existence to prevent others from using it.
According to a study published on Friday by The Block, more than half of Ethereum nodes may have been affected by the flaw at one time. The Block Research team also discovered an address that took advantage of the issue. According to a tweet from Ethereum core developer Tim Beiko on Friday, some pools, including Binance, appeared to be mining on the incorrect version.
To sum it up, an exploit in Ethereum software recently caused a hard fork in the Ethereum blockchain, meaning there were two competing chains at one point. For anyone not familiar with blockchains, chain splits are not all that uncommon, but what's important is the length of the chain. Whichever chain gets more hashpower grows longer and remains the authentic chain.
As one developer close to the situation described this situation as a "really close shave" on Twitter, meaning the public blockchain was almost forked to the attacker's chain. Since many miners were running the buggy version, with even big entities like Binance, it meant there was a real competition against the true chain.
As crypto, particularly Ethereum, continues to amass more and more value in its network, it will certainly be interesting to watch how the development community handles security as we advance.
Heading into our second story of the day, we're covering the "V-Shaped" recovery of the Bitcoin hashrate, where just under three months after the Chinese state council banned bitcoin mining, the hashrate has been picking up momentum.
Since the beginning of 2021, the Bitcoin network's one-month implied hashrate steadily increased, peaking at 166 exahashes per second (EH/s) in April. It continued horizontally during that month and the next but began to decline dramatically as June began. By July 1, the Bitcoin network hashrate had dropped by approximately 30%, reaching a low of around 95 EH/s later that month.
However, the hashrate has been rapidly rising since then, growing by about 30% in around 30 days and setting in motion a V-shape recovery.
When China tightened bitcoin mining regulations in May, the thriving computing power used on the Bitcoin network began to decline, and in less than two months, provincial governments had already issued a slew of shutdown orders and inspection notices to local miners, who saw no other option but to flee the country for good.
However, since the great ASIC exodus, some farms have begun to be redeployed overseas, bringing all of the banned miners back online and triggering a robust hashrate recovery, with August being a crucial month for the Bitcoin network hashrate, with the 30-day moving average of the mean hashrate currently at 120 EH/s, according to CoinMetrics data.
Lucas Nuzzi, in his article for BitcoinMagazine, stated, the "one-month implied hashrate is a better-suited metric to track mid-to-long-term changes in Bitcoin's hashrate because it filters out all of the noise," meaning that in the one-month implied method, big daily swings in hashrate are phased out, the leaving a clear view for which direction hashrate is heading as a whole.
It just has to climb by roughly 38% to hit its all-time high, demonstrating that the Bitcoin network hashrate has passed a rigorous stress test, confirming that it can recover from a ban by one of the world's largest economies and still have a "V-Shaped" recovery.
Thanks, as always for reading Overbit News. Take care until next time!