An unexpected congestion in the Ethereum network has caused a great deal of hue and cry amongst its users as well as node operators. In the wake of the blockage, ETH costs began sinking and also touched a low of $405.29. It ends up that Fcoin, a cryptocurrency exchange, could be the perpetrator behind Ethereum’s issue.
Apparently, Fcoin applied a new voting system which supposedly ‘incentivizes a Sybil assault’. A Sybil assault is an act of creating great deals of fake identities to gain a disproportionately huge impact on a network. MyCrypto called the ballot mechanism to be ‘mind-numbingly despicable’ in a recent Tweet.
Mycrypto has been estimated, as claiming,” Unsurprisingly, individuals that are economically incentivized to get a shit-token provided on a shit-exchange are sending these tokens en masse to separate accounts on the blockchain and afterwards to different accounts on the ‘exchange-who-must-not-be-named’ […] and also hence resulting partially (or entirely?) in the network blockage & high purchase costs that we’ve experienced these past few days.”
See Also: FCoin to dethrone various other top exchanges? Daily quantity rose to $17.3 billion within a month of its launch
Fcoin embraced a brand-new voting system fairly unlike the traditional ones generally used by various other crypto exchanges. The voting system enables individuals to elect symbols to be listed on the platform by means of deposits. Thus, one down payment equals one vote. Because of this, various tokens made down payments for acquiring ballots leading to obstructing of the network.
A Chinese crypto market aggregator reportedly found the trading quantity on Fcoin to often be above $5 billion over a period of 24-HOUR. The trading quantity is attributed to a trans cost mining revenue version. The system settles trading charges paid in BTC or ETH with its FEET tokens, until 51 percent is dispersed to the general public, making traders the proprietor of the exchange, FCoin owner Jian Zhang claimed in an interview with Fred Wang, owner of Mars Financing.
Zhang asserted that Fcoin’s profits version is just a ‘misinterpreted development’. According to reports, the exchanges which took on the trans fee mining design saw their trading quantities top Binance. One more cryptocurrency exchange – Coinex – saw its trading volume shoot up by over 24000% in a 24-HOUR duration after accepting the new model.
A mechanical engineer turned journalist, Shekar takes a keen interest in the study and analysis of cryptocurrencies and blockchain strategy. With the cryptocurrency world blooming in the recent days, he finds great interest in monitoring their growth and gathering every possible piece of information about them. He works as a crypto-journalist for the website Cryptoheed.