TL;DR
- Recent research has found that launching attacks on Bitcoin and Ethereum, two of the world’s leading cryptocurrencies, is economically unfeasible due to the high costs of procuring the necessary computational resources.
- The study revealed that a 34% attack on the Ethereum network would require an estimated investment of $34.39 billion, and gaining control over the Bitcoin network would cost more than $20 billion in ASIC mining unit production.
- These findings reinforce the security and credibility of Bitcoin and Ethereum networks, highlighting the importance of decentralization in ensuring the security of blockchain networks.
Recent research has shown that launching attacks on Bitcoin and Ethereum, two of the world’s leading cryptocurrencies, is economically unfeasible. This finding has significant implications for the security and stability of these digital currencies.
In a study carried out by a distinguished team of investigators, the financial feasibility of prospective 51% assaults on certain networks was examined. The term ‘51% attack’ is used to describe a situation where a consortium of miners, who hold over half of the network’s mining hash rate or computational power, launch an assault on a blockchain.
Potential attackers could possess the capability to obstruct new transactions from receiving confirmations, thereby interrupting payment processes among some or all participants. Nevertheless, studies indicate that executing such attacks on Bitcoin and Ethereum may not be economically feasible. The financial burden of procuring the requisite computational resources to initiate a successful attack significantly surpasses any prospective benefits.
This cost barrier serves as a robust security measure, protecting these networks from potential attacks. The researchers used a variety of methods to calculate the costs associated with launching a 51% attack. These included the costs of hardware, electricity, and cooling systems necessary to run the mining rigs. The results were staggering, with the costs running into billions of dollars.
The Economic Barriers to Attacking Bitcoin and Ethereum
The research team has provided some insightful data. On December 31, 2023, when the price of Ether was $2,279 per coin, launching a 34% attack on the Ethereum network would have required an estimated investment of $34.39 billion. Furthermore, the attacker would not have been able to gain the necessary control over the network until June 14, 2024.
When it comes to Bitcoin, the situation is similar. Various scenarios have shown that it would be unfeasible for an attacker to gain majority control over the blockchain’s hash rate. For instance, the production of the required number of ASIC mining units would cost more than $20 billion, which is impossible due to the limited availability of microprocessors.
This research provides a significant boost to the credibility of Bitcoin and Ethereum. It reinforces the security of their networks, making them a safer choice for investors and users. The findings also underscore the importance of decentralization in ensuring the security of blockchain networks.
In conclusion, this research has shed light on the economic unfeasibility of attacking Bitcoin and Ethereum. It serves as a testament to the robustness of their networks and the inherent security provided by blockchain technology. As we move towards an increasingly digital future, such findings underscore the importance of secure and stable digital currencies.
