Is your favorite cryptocurrency safe? đĄïž
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
