A 51% attack refers to a situation in which a single entity or group gains control of more than half of the computing power (hashrate) on a blockchain network. This level of control can potentially allow the entity to manipulate the blockchain in various harmful ways, such as double spending coins, preventing new transactions from being confirmed, or altering the ordering of transactions. It’s a significant security concern in the realm of decentralized cryptocurrencies.
Where It Is Used
Primarily, the concept of a 51% attack is relevant in the context of blockchain technology and cryptocurrencies that utilize Proof of Work (PoW) for consensus on the network.
Why It Is Used
A 51% attack is not used for any legitimate purpose by design; instead, it represents a vulnerability. Attackers may pursue it for financial gain (e.g., double spending) or to damage a network’s credibility.
Who Uses It
This kind of attack would be executed by miners or groups of miners who have amassed enough computational power to control over 50% of the network’s mining hashrate.
Who Issues It
The concept of a 51% attack is inherent to the structure of blockchain technology itself and is not “issued” by any entity. It is a potential risk arising from the decentralized and competitive nature of mining in blockchain networks.
Who Regulates It
There is no centralized authority that regulates or prevents 51% attacks. However, blockchain networks may implement various technical measures to increase their resistance to such attacks.
Top Usage
The primary risk of a 51% attack includes:
Pros and Cons
Pros:
Cons:
Examples of Usage
Also Known As
Real-world Analogy
A 51% attack can be likened to a scenario where over half of the voting members in a democratic election collude to control the outcome, undermining the fairness and integrity of the election process.
Where to Find More Information
This brief encapsulates the essence of what a 51% attack entails, designed to inform without overwhelming, and directs where to delve deeper into each aspect.
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This page was last updated on February 17, 2024.
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