Is your favorite cryptocurrency safe? 🛡️
To stay ahead in the crypto world, it's crucial to educate yourself about potential hacks and ongoing developments.
Today, let's dive into the topic of 51% attacks.
What is a 51% Attack?
It happens when a person or group controls more than 50% of the blockchain's hashing power, letting them to tamper with transactions.
How It Works:
- Hash Rate Dominance: The attacker controls the majority of the network's hash rate.
- Double Spending: They can reverse transactions and enable double-spending.
- Block Interference: They can halt new transactions from gaining confirmations.
- Mining Monopoly: They monopolize mining, preventing other miners from generating blocks and collecting rewards.
Historical Examples:
- Bitcoin Gold (2018): Suffered a 51% attack resulting in $18 million worth of double-spent coins.
- Ethereum Classic (2019): Experienced multiple 51% attacks, leading to double-spending of thousands of ETC.
- Verge (2018): Faced an attack that led to the creation of millions of XVG through blockchain manipulation.
What steps can be taken for prevention?
- Increase Network Hash Rate: Makes it harder for a single entity to control 51%.
- Proof-of-Stake (PoS): Security based on the amount of cryptocurrency held, not computational power.
- Enhanced Monitoring: Continuous network monitoring for unusual mining behavior.
- Decentralization: Promote decentralization in mining pools to avoid concentration of mining power.
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#CryptoSecurity #Blockchain