Chinese Exchange FCoin Is Accused Of Overloading Ethereum Network For Cheap Adv ...

2019-3-18 14:02| 发布者: 41caijing| 查看: 447| 评论: 0|来自: ICO Brothers Media

Little-known Chinese cryptocurrency exchnage FCoin is responsible for Ethereum network overload and unusually high gas fees recorded over the past few days.

FCoin, founded by Zhang Jian, former employee of Huobi, is accused of intentionally encouraging a rash of Sybil attacks in order to temporarily damage Ethereum blockchain and attract undeserved attention.
As earlier reported, the Square company has withdrawn its application to open a deposit-taking bank.

What happened to Ethereum network?

Over the past few days, Ethereum network transaction prices have reached all time highs, creating problems for DApps and users who cannot pay high transaction fees. The spike in network activity which became a reason of this has been traced by in FCoin activities which, apparently implemented a “cumulative deposit number ranking” voting protocol in order to list new coins on the exchange.

It means that in order to list a new coin on the platform, votes are cast by sending a desired number of coins to the exchange instead of using a standard “one-vote-per-user” voting structure. Once a voting campaign is over, a coin with the most deposits will be listed on the exchange. Nevertheless, this obviously creates a motivation to hold several voting campaigns using different account to send tokens to the exchange – this is Sybil attack.
Thus, a lot of coins, based on Ethereum technology, have entered the race to be listed on FCoin die to Sybil attack, and this significantly increased the amount of congestion, increasing the transaction fees and gas costs in this process as well. This is bad news for ordinary users of Ethereum which not only have to deal with high prices and constant fails, but also with increased wait time for transaction confirmation.

Why does FCoin need it?

In opinion of a number of cryptocurrency analysts, obviously imperfect voting format and consequences are deliberate, aimed at creation of an influx of publicity. The exchange hopes to ride the wave of rage and fame in order to gain more popularity.


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