DDOS attacks on Bitcoin exchanges as explonation for the transaction stops

Good morning forum!

What was formerly believed to be an internal error of Mt.Gox Bitcoind application could actually be a widespread attack on major exchanges. Bitstamp has released a statement in which they explain the suspended transaction with a DDOS attack which targets the transaction ids before being confirmed by the blockchain.
Mt.Gox has made no statement to at this point but given that Bitstamp holds about 10% more market-share we can safely assume the attack as the most probable cause for Mt.Gox initial errors.
Bitstamp has also anounced to have a fix ready soon and that no funds have been lost or misguided.

The attacked bug or exploit is actually known since 2011 and has lead to a situation at the time where for six hours two alternate versions of the blockchain existed. Since then there was a lot of work to eradicate this happening. Falsifying Bitcoin transactions this way would need processing power in super-computer terms as you would also to manipulate every subsequent transaction that builds on the one you originally faked. While this would be theoretically possible, the practical barriers to such an undertaking are to steep to reason them with a probable profit of a couple of million dollars. Especially when said actions lead to further loss in worth of the stolen good.
Much more likely is attempted stalling or sabotage of protocol - as sad as it sounds. Enemies are manifold and so it may even be that you are witnessing the secret appendixes of Russia's recent ruling making Bitcoin illegal there. It would certainly befit the new Zar and i feel awkward giving all the credit the NSA.

However, given the effort needed to bring down Bitcoin there is little to no chance it would succeed. Plus, an attack can be dealt with.

I will keep you updated as the situation progesses!

See you soon forum!


Tim