The cryptocurrency community has been rocked by an unprecedented hack as Justin Sun’s Poloniex, Binance and Huobi have been caught up in a hostile takeover saga of STEEM blockchain. While the crypto community is enraged on the possible events that have transpired on Monday, Huobi and Justin Sun have come forward to straighten out the “possible takeover”, stating the blockchain was on a verge of a hack.
If you are yet to follow the story, here is a short breakdown. Justin Sun purchased the Steemit.com, a decentralized Reddit-like platform, earlier in the year receiving a huge amount of pre-mined STEEM tokens along the way.
The delegated Proof of Stake (DPoS) takeover
STEEM blockchain depends on a delegated proof-of-stake (DPoS) consensus system whereby users stake tokens with “Witnesses” for governance protocols. The higher stake of tokens the “Witness” holds, the higher amount of control they hold over the decisions made on the blockchain.
Once Justin bought off Steemit, the community were afraid given the huge stash of tokens he now held and in a bid to limit his power, community decided to hold a soft fork.
Here is where