Lisk (LSK): Another Project Going Through Malicious Transactions Attack
The Lisk blockchain went offline and returned a day later, without a hard fork - but shows that even delegate-powered coins can be vulnerable.
As crypto assets remain highly valuable and sought-after, attacks are coming with an attempt to maliciously spend or steal assets. In all cases until now, the attacks involved mining - but the latest coin to be attacked was Lisk (LSK).
The Lisk blockchain is secured by 101 delegates elected by the community. The delegates serve to verify transactions and produce blocks. However, in a June 2 attack, a faulty transaction was accepted, though it generated warnings for having a faulty timestamp. The transaction did not go through, but caused block production to start.
The Lisk network since then works on an updated version, which does not contain the bug.
Unfortunately for Lisk, the issue has once again underlined the problem of “Elites”, or delegates that have found a way to vote themselves into positions without the wider community. Some believe the delay in turning on the Lisk network again was due to the delayed response of delegates, who would need to update their nodes.
The Lisk project has one of the few working voting systems, with much more delegate nodes compared to up and coming projects like EOS and TRON, which are yet to test a similar system of delegates. The attack against the network and the reaction of the nodes shows that the system is imperfect at best.
A few days after the news, the LSK market price suffered a shakedown, along with the rest of the markets. LSK lost more than 10% in the past 24 hours to $8.53, and has been on a downward trend in the past month.
Recently, LSK launched trading on OKEx, but the news only exacerbated the drop. Lisk was one of the best-performing projects with a dedicated team in its Berlin offices. The Lisk project underwent a rebranding in February, but this did not help the coin’s market price too much. Predictions of $30 failed to materialize.
The one thing positive about LSK is that a lot of coins are locked with the delegates, who have no interest in selling them on the open market. The work of the delegates can be observed through the explorer tool.