Dimecoin Network Update Regarding 51% Attack and Wallet Maintenance
First off, the Dimecoin team wants to thank everyone for their continued patience. We understand everyone’s frustration over the last couple weeks and have worked tirelessly to remedy the situation as quickly as possible. The Dimecoin team has successfully tested and deployed a security update to our blockchain. The update has been pushed to GitHub, and the latest version of our wallet is now available for download. It is necessary for everyone to update their wallet for their protection and to help increase the security of the Dimecoin network
SOLUTION
Automatic checkpointing has been integrated into our blockchain protocol to prevent any further 51% (double-spend) attacks. This checkpointing system is used to create a ruleset that does not allow block reorganization passed the previous checkpointed block. When an attacker attempts to double-spend, all the blocks mined on the forked blockchain will not contain the accepted checkpoints and will be invalidated. The checkpointed blocks are validated through a trusted node. This node is operated and maintained by the Dimecoin team.
This solution is temporary as we will be switching to our hybrid POS/POW protocol in the future, further securing our network. Our time-frame goal for hybrid POS integration remains the same, end of Q1.
WHY EXCHANGES HALTED
It is important to remember that each exchange is a private entity. Dimecoin Network does not have control of how an exchange operates. We can make recommendations and implement security features within our protocol; however, it is ultimately the exchange that has the final decision. Exchanges will halt trading or place coins in maintenance for several reasons, primarily when they detect suspicious activity that’s associated with a double spend attack. Mainly, this is to protect their customer base and asset pool from being victimized. When left unchecked, an attacker can devalue a coin while simultaneously creating a deficit of coins which are active in the order book, essentially robbing the exchange.
With assistance, the deficit of coins held by exchanges has been reconciled or is in the process of being finalized.
WHEN WILL EXCHANGES BECOME AVAILABLE?
Over the last couple of weeks, the Dimecoin team has worked side by side with the exchanges where Dimecoin (DIME) is currently listed. We share a common goal, and that is to protect our customers and community. Each exchange has a different procedure for handling these situations. Some want to run independent tests while others are okay with reviewing evidence that our tests were successful. However, exchanges should slowly start to reopen Dimecoin (DIME) for trading, including deposits and withdrawals. We will be sure to inform everyone as exchanges open back up.
REMINDER : Everyone must update your Dimecoin wallets. This is a mandatory update. You can download them here: https://dimecoinnetwork.com/wallet/
Here is an article for anyone interested in a further understanding a 51% (double-spend) attack and what it entails.
https://medium.com/coinmonks/what-is-a-51-attack-or-double-spend-attack-aa108db63474
