Cardano blockchain splits after transaction error

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An incident on the Cardano mainnet occurred on November 21 due to a “malformed” transaction, resulting in a split in the blockchain’s history. The problem was caused by a core software library fault that bypassed validation checks when executing a delegation transaction. As a result, the blockchain split into two chains – “poisoned” and “healthy.” The faulty feature had not been utilized until last year when it caused the hash error.

Experts explained that a similar attack attempt on the Preview test network led to the deliberate anomaly that occurred. However, an emergency update has been released by the network team to address the issue. While the blockchain did not stop functioning completely, there was a noticeable delay in block production. Fortunately, user funds were not impacted by the incident.

The perpetrator of the attack was identified as a staking pool operator named Homer J, who took responsibility for the incident. He expressed regret for his actions, claiming that his involvement stemmed from personal curiosity and a desire to challenge himself by reproducing the failed transaction. Despite his apology and explanation, Cardano co-founder Charles Hoskinson labeled the incident as a premeditated attack by an individual seeking to harm the brand and reputation of IOG.

Hoskinson added that the attack targeted his personal pool and caused significant disruption to the entire Cardano network. The impact affected all users, with potential consequences including loss of block rewards, the possibility of double spending, and disruptions in decentralized finance (DeFi) activities. The situation prompted a criminal investigation, as acknowledged by the developer, who confirmed that the FBI had reached out to him for more information regarding the incident.

In response to the incident, ADA prices did not exhibit significant fluctuations, with the coin’s trend following the overall market downturn in recent days. Despite the severity of the attack and its implications for the Cardano network, some users downplayed its impact, suggesting that the network split went unnoticed due to low blockchain usage.

Earlier critiques of Cardano’s operational model, such as describing it as an “insider enrichment scheme,” were highlighted in the context of the recent incident. The aftermath of the split underscored the need for robust security measures and continuous monitoring to prevent future vulnerabilities and attacks on the blockchain network.