Bitcoin and Ethereum Become The Most Secure Blockchains

in #hive-1679222 months ago

Bitcoin and Ethereum Become The Most Secure Blockchains

51% attacks on crypto currency Blockchain have always been a concern for many people in the sector. Where one Mining group controls 51% of the block confirmations which would allow them to rewind blockchain confirmations. This has happened previously to Bitcoin Gold where 18 million of Bitcoin Gold was stolen.

But some recent market conditions have completely altered the financial benefits of a successful attack which now creates a deficit if someone was to attempt this on Bitcoin or Ethereum.

The Dangers of a 51% Attack

In the realm of crypto currencies, security is paramount. The decentralized nature of blockchain technology hinges on the trust and integrity of its networks. Among the myriad threats that loom over these networks, the specter of a 51% attack stands out as one of the most ominous. However, recent research suggests that for two of the most prominent crypto currencies, Bitcoin and Ethereum, such attacks have become not just difficult but economically unfeasible.

A 51% attack, named for the threshold of computational power it requires, entails an entity gaining control of over half of a blockchain's mining hash rate. This control theoretically empowers the attacker to manipulate the blockchain allowing for double spending, transaction reversals or even complete network control. Similarly, in proof-of-stake or BFT networks like Ethereum, a 34% attack seeks to sway the consensus by acquiring a significant portion of the network stake.

A recent research paper, published on Feb. 15 delves into the economics of these attacks, particularly focusing on Bitcoin and Ethereum. According to the findings, the costs associated with executing such attacks far outweigh any potential benefits, rendering them economically unfeasible.

The Cost Of An Attack on Bitcoin and Ethereum

For Ethereum, the numbers are staggering. The estimated cost to execute a 34% attack on the Ethereum network as of Dec. 31, 2023, amounted to a jaw-dropping USD 34.39 billion. This figure was calculated based on the price of ether at USD 2,279 per coin. Moreover, even with such astronomical resources, the attacker would require until June 14, 2024, to successfully gain the necessary control over the network. This timeline underscores the immense challenge posed by attempting to subvert Ethereum's security.

Bitcoin, the pioneer crypto currency, presents similarly daunting obstacles. The sheer scale required to amass a majority control over its hash rate is staggering. It would cost an attacker over USD 20 billion to procure the necessary ASIC mining units to achieve such dominance. However, even if one were to overcome this financial hurdle, logistical barriers remain insurmountable. Colluding with hardware manufacturers or navigating the intricate supply chain poses formidable challenges. Additionally, the exorbitant electricity costs associated with running a massive number of mining machines further deter potential attackers.

The conclusions drawn from this research are clear: the security measures implemented by Bitcoin and Ethereum have evolved to a point where the costs and risks associated with launching a 51% attack far exceed any conceivable benefits. The exorbitant financial outlay, coupled with logistical hurdles and the sheer impracticality of executing such an attack, serve as a testament to the resilience of these blockchain networks.

Moreover, the implications of this research extend beyond mere academic interest. It underscores the robustness of Bitcoin and Ethereum, bolstering investor confidence and cementing their positions as the cornerstones of the crypto currency landscape. In an ecosystem plagued by concerns over security and trust the fact that these foundational networks have reached a level of security where attacks of this magnitude are economically unfeasible is a significant milestone.

Furthermore, this research serves as a stark reminder of the evolving nature of crypto currency security. As adversaries grow more sophisticated so too must the defences of blockchain networks. While Bitcoin and Ethereum may currently be beyond the reach of a 51% attack, vigilance and innovation remain essential to safeguarding the integrity of these networks in the face of future threats.

Bitcoin and Ethereum Now Outside The Reach Of An Attack

The research unequivocally demonstrates that the era of Bitcoin and Ethereum being vulnerable to 51% attacks is firmly in the past. The astronomical costs, logistical challenges, and impracticalities involved render such attacks economically unfeasible. As the crypto currency landscape continues to evolve the resilience of these foundational networks serves as a beacon of trust and security in an ever-changing digital frontier.

It also further adds to the reason why Bitcoin and Ethereum continue to remain the top two digital assets on the market attracting ongoing financial investment and utilisation as it continues to move towards widespread and mainstream adoption.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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