Harmony Set to Reverse Blockchain Following ONE Token Forgery Attack, Erasing Over 109K Transactions
The Harmony network will reverse its blockchain state to August 11, eliminating over 109,000 confirmed transactions following a security breach that generated counterfeit ONE tokens.
Following a security exploit that resulted in the creation of counterfeit ONE tokens, Harmony has announced plans to reverse its blockchain to August 11, a move that will eliminate more than 109,000 transactions that were confirmed following the designated rollback point.
On Monday, the layer-1 blockchain network announced that network validators would restore the chain to blocks that were recorded at 11:25 pm UTC on August 11. Following this restoration point, new blocks will be generated from the subsequent heights utilizing replacement databases.
The window of discarded activity encompasses 109,126 standard transactions along with 315 transactions related to staking. According to Harmony, attempting to selectively preserve certain transactions would pose security risks due to differences in balances, contract states, nonces and various other conditions that would exist on the replacement blockchain.
Last week, Harmony began evaluating the possibility of a rollback following emerging reports indicating that illegitimate ONE tokens had been created and subsequently transferred to cryptocurrency exchanges.
In Monday's announcement, the network revealed that investigation teams had successfully tracked nearly the entire supply of the counterfeit ONE tokens to specific wallets or service boundaries and were actively coordinating with cryptocurrency exchanges, cross-chain bridges and law enforcement agencies. According to data from Coingecko, the token's market capitalization stood at approximately $10.8 million at the time of the latest check.
With this rollback strategy, Harmony joins Ravencoin in the group of blockchain networks attempting to undo previously confirmed blockchain activity in the aftermath of security exploits.
Ravencoin was confronted with a possible three-day blockchain reorganization following the exploitation of a consensus vulnerability. Mining pools that controlled the majority of Ravencoin's hash rate initiated the construction of an alternative chain with the capability to reverse transactions that had been previously confirmed.
At its most recent price point of $0.002819, Ravencoin demonstrated a market capitalization of $46.3 million.