NXT Developers Won’t Rollback the Blockchain

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NXT Developers Won’t Rollback the Blockchain

ForexMinute.com – In the wake of last Friday’s theft of 50 million NXT coins, there were speculations that the coins’ developers will take a decision to rollback the coin’s blockchain, much like Viacoin developers did after the theft at MintPal. Though, the NXT developers ended the speculation by announcing no rollback.

The Inside Story
On Friday, cryptocurrency community encountered one of the biggest thefts since Mt. Gox. In this current robbery, around 50 million NXT coins were reportedly stolen from the popular cryptocurrency exchange BTER. Not only this event sent shivers within the NXT community, but it further unfolded the security lapses inside most of the leading digital currency exchanges.

The usual apology round continued over the weekend where NXT Developer Kin took his public forum to address the community, saying he is sorry about this incidence. “Several hours ago one of our hosting accounts was hacked and the hacker got 50m NXT from this server. It’s totally our fault and we are trying our best to cover all the loss. However 50 million NXT is huge for us, we cannot afford it at the moment,” he added.

Then was the time Lin recommended his developers to rollback the NXT blockchain, a move that could have easily tainted the coin’s reputation. He also made sure to consult the community before finalizing the aforementioned decision. Indeed, Kin was inspired by the recent move taken by Vericoin developers under similar situations.

The Ransom
The situation got much worst when the hacker himself showed up anonymously and asked for a whopping ransom in exchange of the stolen 50 million NXT coins. BTER responded to the hacker by sending him 10 Bitcoin, after which he returned over 5 million NXT coins. Sometime later, the hacker turned his back on the exchange once again, saying they are taking too much time in negotiating the matter. He wrote:

“So, what taking so long? Send me the next batch already. I’m going to leave soon. It’s already 2 hours of negotiation, it took me 1 hour to clean your whole exchanger. BTC 500+ I’m not going to sit here, and wait 2 more hours for you to decide to send the lousy 10 BTC.”

In a sudden panic, BTER sent the criminal 100 more Bitcoins. But until now, no NXT coins have been returned to the exchange, and the hacker has eventually gone hostile for a long doubtful period. He later messaged, “Deal is off. Good night!”

No Rollback
On the grounds of keeping NXT infrastructure unaffected from the theft, the coin’s developers have decided not to fork the blockchain. Indeed, this step has come as a huge shock for those who have lost their coins in this unfortunate incidence. The total amount of stolen NXT coins counts to be 5% of the total supply, unlike the Viacoin whose stolen units were 30% of the entire supply. The developers cited the same reason to the victims in their explanation of why they are avoiding a fork.

The responsibility thus shifts to BTER which will now be responsible for refilling its customers’ ripped pockets.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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