Security is very tight, but there are still 51% or 51% attacks. What does a 51% attack look like?
Blockchain technology is what makes bitcoin more valuable than fiat currencies and government-issued currencies. Blockchain technology is a digital ledger whose data can’t be altered or changed. This means that transactions and spending of the same bitcoins cannot be duplicated. Blockchain technology makes it impossible to fake bitcoin transactions.
We all know that blockchain technology can be used to collect transaction data. Blockchain’s open nature makes it safe as it can be monitored for any data manipulations. But is Blockchain secure enough?
Definition 51% Attack
51% Attack refers to a form attack on the Blockchain. These attacks are often made on Bitcoin. This attack is usually executed by miners who control or manage over 50% of the network hashing rate.
This happens when one or more miners gain control of a large Proof of Work-based Blockchain. In this way, attackers can stop new transactions from being confirmed. Payments between users can be stopped if they are delayed. They can also change transactions already completed or create double-spending issues.
Double-spending occurs when the digital currency on the Blockchain is duplicated or copied. In general, tokens or coins that have been forged or duplicated are only allowed to be used 2x. Tokens can only be used one time. This will disrupt the network operating systems.
What is the 51% attack?
A 51% attack can be accomplished by creating two blockchains. Once the solution is discovered, all miners will see new blocks. A miner or group of miners who control more than half of the computing power cannot broadcast their hash.
Because there are two blockchains available, miners can manipulate data by entering Bitcoin transactions on the latest Blockchain version. They can use Bitcoin to purchase items. They can create an alternate blockchain to mine Bitcoins before they are confirmed.
Blockchain mining embraces democracy and follows it most closely. This means that all miners will consider the longest chain in the Blockchain to be the correct one.
51% of attackers need to continue confirming transactions and racing to create new blocks to fool other miners. This takes a lot of energy, and it is almost impossible to do so on a large network like Bitcoin.
Has 51% ever been attacked?
The answer is no. In July 2014, the well-known mining pool GHash.IO was found to have exceeded the 51% limit. This led to the Bitcoin mining mania. The terror of this attack was felt immediately by the bitcoin community. Peter Todd, a bitcoin developer, was forced to sell half his assets because the pool had suddenly grown.
Bitcoin prices dropped by USD 633 to US 600 due to the 51% Attack Information. GHash.IO made a confession promising that the mining pool would mine no more than 40% of the bitcoin hash rate. This was to calm the panicked masses. Representatives of GHash.IO also asked other miners for their help in setting a good example to the rest of the Bitcoin community.
He recommended that a new committee is created to oversee the 51% attacks issue. This committee will consist of representatives from mining businesses and Bitcoin businesses, as well as other specialists.
How can you prevent the 51% attack?
Yes. To prevent 51% attacks, decentralization is the most effective action. The network will be secure as long no single substance holds more than 50% of the mining power.
The chance of attacking the bitcoin network at 51% is very unlikely, and it’s close to 0. A miner, or a group of miners, will require immense computing power to make it happen. They will have to conquer many millions of bitcoin miners around the world. To perform such a huge hash, a miner would require billions of dollars worth of equipment.
Supercomputers aren’t able to control the millions of computers that are currently mining Bitcoin, so miners can’t use them. A group of miners was able to obtain losses from the 51% attack.
It is virtually impossible to attack a large network with 51%, especially the Bitcoin blockchain. The Bitcoin blockchain is considered the most secure and tightest cryptocurrency network.
Although it’s difficult for attackers not to control other Bitcoin networks, it’s possible with lesser-value cryptocurrencies. Altcoins have a lower amount of hashing power than Bitcoin. Monacoin and Bitcoin Gold are some examples of cryptocurrencies that have been affected by 51% of attacks. ZenCash is another example.