A Reddit user and few media house reported that some Dash wallet addresses comprised around 51% of all Dash mining hash rates. But, after examination, Dash’s Core Group has finally announced that the entity in control of the wallets is clean and doesn’t plan to attack.
Suspected Dash wallets remove their hashing power from NiceHash
Earlier this week, a concerned vigilante Reddit user named Flenst found that three of the top addresses over the last few thousand Dash blocks are controlled by the same entity. According to his post,
“This particular transaction has three of the four top addresses as inputs meaning one entity controls all three. These three alone gather 53% and more. You can also see this started 6 months ago/around September last year, and I think the fourth unknown pool also belongs to this entity yet it is separated on the blockchain. It started to gather a lot of hash at the same time.”
The addresses that were analyzed were :
Combined, these addresses have mined 26,665 Dash to date at the time of writing. That is a total of 573 BTC or $2.2 million at current prices. Yet, the financial aspect is the least of anyone’s worries.
His post also concluded in his post that it is possible that someone could try to perform a 51% before DASH implements their chainlocks. The actor could start right away. Anyone offering a service with DASH must keep an eye on the chain as long as this doesn’t change and be very careful.
After carefully examining the presented facts, the member of Dash’s core team put forward a post on Dash’s forum saying that they’ve spent the past few days to internally assess everything and better understand all addresses and hashrates involved. He further added,
“We’ve examined the claims and they appear correct at this time. However, we don’t believe the entity in control of the wallets in question plans or wants to attack because their mining activities began at least 4 months ago and their blocks have been published for all to see.”
The Core team member named Bob in his post mentioned that the addresses under review have started removing their hashing power from NiceHash and diversify into various mining pools. This has significantly lowered the risk of a malicious party renting the hashing power via NiceHash and simultaneously signals that the entity in control of the hashing power does not have negative intent.
The Core Group believes that once the miners were made aware of his hashing powers, they quickly moved to more protected pools as they appear to be a major stakeholder of Dash.
To protect itself from such attacks, Dash, in November 2018, announced an innovative feature called ChainLocks. This feature is believed to make it even more difficult to perform a 51% percent attack on the Dash network since it would also require a 51% dominance of the masternode layer. ChainLocks are expected to be included in a future update to the protocol.
While the risk has been averted, for now, the dash team will have to keep monitoring this situation closely and update the community as and when progress is made.
Is Dash actually safe or the attacks stepped back for time being and will attack back soon? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.