For a digital coin that promises total transaction privacy, security is very important and it appears like Verge (XVG) is looking at its security from a sober perspective. The system has been hit twice by hackers in one year and this has raised a lot of concerns among the community and investors in equal measure.
It becomes even a threat to investors when the hacking trail leads to an inside job. When a worker takes control of the system resulting in a 51% attack, investor confidence is hugely eroded and the coin breaking even in the market becomes a pipe dream. How possible is it to control 50+ computing power of a single protocol twice?
Well Planned and Timed Verge (XVG) Attacks
The simplicity of how the attack was planned and executed exposed the Verge (XVG) security underbelly. The first attack timing also came at a time when there was a lot of hype around XVG after inking a deal with an adult content platform, PornHub in April. This saw the platform lose 250,000 XVG.
A month later, the hacker walked away scot-free with $$1.7 worth of XVG by simply playing around with the protocols’ code. This could have been a mistake on the part of the developer team’s quest to make the platform better for fast block verification and this opened up a weak entry point for the hacker.
The hackers knew the time it takes to get validated is very critical and prior to the attacks, the team has set the timing at 2 hours while mainstream coins like Bitcoin has on a 6 minute window. This is one of the easiest ways that the attackers could easily get away with the Verge system; however, all is not lost.
Verge (XVG) Upping its Game on Security
Despite the security flaws, the community is fully behind the developer team and the latest updates indicate that the platform is enhancing its security if a tweet by a Verge developer, Marvin Piekerek is anything to write home about. Tweaking the security function is one of the easiest ways to lockout hack attempts.
To this end, Verge has a brand new Verge wallet which is a new version of Electron Light. Once it is tested and passes the developer security parameters, the wallet should solve Verge’s biggest headache. The wallet comes with select features that the community has been vouching for.
The Electron Light is a fully decentralized and secure wallet with enhanced user friendly features. Another very critical feature is its reliability and good hit for those that transact on the go. The developer team member added that this is an open source application that Vergeis fully driven by the community.
New Codebase Coming to Verge (XVG)
The existing codebase at Verge appears to have been compromised during the two previous hacks and the team behind the projects seems to seal all the loopholes. Marvin has announced that they are and putting in place a new Bitcoin v.013 codebase which will bring additional stability on the Verge ecosystem.
The Verge community has everything to lose if the security measures are not implemented fast. The hacks did not impress the investors especially those who had trusted the outfit with the security and privacy of their user funds including that of PornHub partnership.
However, Mark Erhardt, a BitGo exchange engineer appeared to defend Verge by adding that:
“I wouldn’t be surprised by more scrutiny in the near future, both leading to more attacks and to investors more accurately rating the value proposition of smaller Altcoin projects, the absence of an attack is not proof that a system is safe. Quite a few Altcoin projects appear to be taking unsafe shortcuts. It’s just that nobody has bothered to exploit these systemic flaws or weaknesses, yet.”