Speaking at the unit virtual conference, Coin Metrics researcher Lucas Nuzzi said one way for exchanges to fight cybercriminals is to hire mining power from online markets.
Nuzzi estimates that a cyber-hacked exchange could use enough hybrid power to carry out a restructuring of the network from an online marketplace:
He said: “This is basically a technique where you’re trying to reorganize mining power by recruiting. With mining, exchanges could potentially replace transactions in which their hot wallets are emptied. ”
Nuzzi said Bitcoin (BTC) transactions had not been finalized before they were verified. He admits that Bitcoin transactions are usually finalized after six blocks of verification. This process usually takes an hour. That’s why exchanges can choose a version of a chain where a cyber attack doesn’t happen by renting out karma power or collaborating with mining pools.
CZ also considered the solution
This scenario, for some, may at least be unrealistic about Bitcoin. However, this was something Binance CEO Changpeng Zhao was seriously considering after the notorious Binance cyber attack, which cost 7,000 Bitcoins. CZ changed its plan after heavy criticism from the crypto community.
Nuzzi told The Press that this solution is not suitable for large cryptocurrencies like Bitcoin, but could be used for smaller ones.
