Ethereum Network Clogging Woes Continue, With No End In Sight

Blockchain, Crime, News | August 13, 2018 By:

The ethereum network continues to be clogged by spamming activity that is raising transaction fees, known as gas. The activity began last Tuesday and uses a smart contract identified as possibly linked to a copy of a game.

As a result, fees for regular transactions have risen above $1, causing some services to raise their own prices to pay for the gas. So far, there’s only speculation as to the purpose. It could be a test for a future attack, or could merely be a disgruntled user clogging the network. It may also be an attempt to make an ether-based game look more active.

Amberdata, a blockchain monitoring and analytics platform, has identified the problem as a clone of the Fomo3D gambling app. The negative activity has contribued to ether’s recent price swoon, which is now below $300 per single coin.

“Over the past week, the Ethereum blockchain has been under a lot of stress, and the source can be tracked back to a single smart contract.

Last week, there was around 125K incoming transactions from about 36k unique addresses, and about the same amount (117k) from other incoming unique contracts (9.7k). In turn, the contract in question has sent 234k transactions to other addresses, and 116k transactions to other contracts.

Overall, about $27M of value (incoming and outgoing together) has transmitted through this contract as of Friday, which resulted in a huge inflation of the gas price, from an average of 14 to 35.

Amberdata has compiled some statistics on the issue, shown below.