Bitcoinâs Vulnerability to 51% Attack: A New Viewpoint
Bitcoin, ofen hailed as âdigital gold,â faces a looming threat.Duke Universityâs Professor Campbell Harvey warns of a potential 51% attack on the network. This attack involves controlling over 50% of the mining power, allowing attackers to manipulate transactions.
Harveyâs research highlights the cost of such an attack. He estimates that dominating the network for a week would cost around $6 billion. This figure is surprisingly low, considering itâs less than 0.5% of Bitcoinâs market cap. If successful, attackers could alter the blockchain, leading to double-spending and theft. Tho, Bitcoin has historically remained secure from such attacks.
What is a 51% attack? Itâs when a single entity gains control over the majority of the networkâs computing power. This control lets them change the blockchainâs records, enabling theft through double-spending. While Bitcoin has avoided this fate, other networks like bitcoin Gold and Ethereum Classic have fallen victim. The cost, though high, is feasible for well-funded entities. The attackâs feasibility stems from Bitcoinâs proof-of-work mechanism.Miners validate transactions, and the majority rules. But if one entity controls more than half the mining power, they can alter the ledger, stealing coins. despite Bitcoinâs robust security, the risk remains. The cost of executing this attack is estimated to be around $6 billion.
Harveyâs research underscores the potential for severe market disruption. A successful attack could lead to a notable drop in bitcoinâs price. Though, critics argue that such an operation would be logistically challenging and likely detected. Matt Prusak, president of american Bitcoin Corp., dismisses the threat, citing economic infeasibility.
Despite these concerns, Bitcoinâs decentralized nature and increasing mining difficulty continue to
