The platform’s operators detected 2 million NULS transferred and 548,354 tokens, worth approximately $132,000, have already been posted to trading markets and traded away.
In order to combat this theft, the platform announced that it will be executing a “hard fork” — which is a direct code modification of the blockchain itself to change how it operates — that will destroy the remaining tokens making them untradable.
“After the hard fork, the remaining 1451645.65303905 NULS that has not entered the trading market will be destroyed in a permanent freeze to prevent continued flow into the market,” the Nuls Twitter account wrote.
This permanent freeze of those tokens will prevent further losses to the community and make certain the thieves cannot profit from the theft. As for the tokens already sold and traded, new owners – potentially unaware they were stolen – will retain access.
Hard forks to blockchain systems are a controversial method of dealing with thefts. Blockchain technology acts as an indelible historical record of transactions, which is often focused on as a proof of trust in the system itself, these sorts of structural changes show that blockchain data is not completely unalterable.
The most famous case of a hard fork used to deal with theft is the Ethereum blockchain Decentralized Autonomous Organization hack; during that theft, hackers stole approximately $55.4 million worth of Ethereum currency. In response, the core developer team of Ethereum created a hard fork that restored the stolen currency and split Ethereum between the current most used chain and what is now known as Ethereum Classic.
The Nuls developer team said that the attack happened due to a security vulnerability in NULS version 2.2, which has been fixed. To protect against this vulnerability, and follow the hard fork, node operators and wallet owners will need to upgrade their software to the next version of NULS or lose access to their currency.
Since the announcement of the hard fork on Dec. 22, NULS has dropped from $0.249 a token to $0.235 a token. The stolen tokens only represent around 2% of all tradable NULS.
Nuls is an open-source enterprise-grade public blockchain platform designed on a modular architecture founded in 2017 by the Singapore-based company NULS Foundation Pte. Ltd. Its vision is to provide a public blockchain that can be customized to also run private blockchains to meet different industrial goals.
Image: Nuls Foundation
Since you’re here …
Show your support for our mission by our 1-click subscribe to our YouTube Channel (below) — The more subscribers we have the more then YouTube’s algorithm promotes our content to users interested in #EnterpriseTech. Thank you.
Support Our Mission: >>>>>> SUBSCRIBE NOW >>>>>> to our Youtube Channel
… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.
If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.
The platform’s operators detected 2 million […]