Bitcoin SV users have found a significant vulnerability in the network of the new cryptocurrency. On December 8, a 12-minute video appeared on Vimeo with instructions on how to conduct a double-spending attack on Craig Wright’s cryptocurrency. The video casts doubt on the words of the self-proclaimed Satoshi Nakamoto that such attacks are virtually impossible and such statements should be considered as FUD manipulation.

Bitcoin SV Network Problems

The Bitcoin SV cryptocurrency, which stands for Bitcoin Satoshi’s Vision, was launched on November 15 of this year as a result of the Bitcoin Cash network’s hard fork. The split was accompanied by disputes among members of the crypto community, which saw two paths for further network development—either the Bitcoin ABC 0.18.0 client upgrade or the release of Bitcoin SV involving the introduction of Satoshi’s “true vision.”

Bitpay, Binance, Coinbase, and the mining company Bitmain, as well as the Bitcoin evangelist Roger Ver, were against it, while Bitcoin SV was supported by network miners, the head of nChain Craig Wright, as well as the entrepreneur and founder of the CoinGeek cryptocurrency information site Calvin Ayre. And, even though, initially, the Bitcoin ABC protocol was supported by 600% more nodes than Bitcoin SV, at the moment, both cryptocurrencies are in the top 10 by market capitalization, ranking sixth and eighth, respectively.

The threat of the Bitcoin SV network is the ability of users to conduct transactions with zero confirmation, meaning almost instant operations with cryptocurrencies. Thanks to this, trading platforms, merchants, and businesses can accept Bitcoin SV before the first confirmation on the network. This feature was laid in the original pre-fork version of Bitcoin Cash and caused much controversy. The creator of “crypto silver,” Charlie Lee, called the idea of ​​zero confirmation extremely unreliable and involving a lot of vulnerabilities.

Moreover, in the opinion of the crypto entrepreneur, transactions with zero confirmation can entail the problem of double spending, which implies the double use of the same funds. While the Bitcoin network is protected from this vulnerability by verifying each transaction using PoW, where only after three confirmations the operation is added to the chain, blockchains that have transactions with zero confirmation do not have such protection.

This vulnerability was reported by a user nicknamed Reizu, who not only published a video about the possibility of double spending of Bitcoin SV coins but also detailed instructions on how to do this on his blog. According to Reizu, this attack was carried out exclusively for educational purposes to prove that the Bitcoin SV network needs to further optimize the function of conducting operations with zero confirmation. In this regard, the user’s personal data was used to implement the attack: “I conducted several double-spending attacks on BSV network services and used my real accounts and addresses (and not third-party ones) everywhere.” In particular, on the published video, Reizu uses the POP! mobile POS application, which, presumably, should track cases of double spending.

Moreover, Reizu believes that the entire Bitcoin SV network is extremely centralized: “After I mined several blocks, I found that transactions are almost always sent to the same nodes. In other words, Bitcoin SV is very centralized. ” According to Reizu, out of about 450 nodes in the network, four of them alone control 75% of the total Bitcoin SV hash rate.

FUD or Not?

On December 9, Craig Wright published detailed replies to the new accusations. According to the crypto entrepreneur, such allegations always come from anonymous users since they are fraudsters seeking to manipulate the market with the help of false information: “I will cover any loss that occurs on a REAL double-spend fraud. Oh… I do not expect to even have to spend a cent. I will also help ensure that the person who does it ends spending a long time in a small cell.”