The feared 51% attack on the Bitcoin network and 34% attack on the Ethereum network are no longer viable, according to the cryptocurrency analysis platform Coin Metrics, in a recent report.
El report, titled “Breaking BFT: Quantifying the Cost to Attack Bitcoin and Ethereum”, published by Coin Metrics at the end of last week, points out that the associated costs of perpetrating these attacks on the most powerful blockchains in the world make them already are not “economically unfeasible” to execute.
Coin Metrics created a new model to quantify the costs of attacking the Bitcoin and Ethereum networks, in order to break the Byzantine fault tolerance thresholds on these blockchains and calculate the associated costs.
The platform indicated that it has created a new metric, called “Total Cost of Attack (TCA)”, based on its new model, which covers all the operational and capital expenses associated with these attacks, to demonstrate that they have become extremely expensive.
In the report, Coin Metrics emphasized that the cost of executing the 51% and 34% attacks on Bitcoin and Ethereum, respectively, cancels the financial incentive that an attacker could have to take control of these networks and threaten the security and stability of these blockchains.
On the other hand, the platform argued that the security of the two main blockchains in the market continues to be high, even “when fees are low and trending downward.” This is thanks to the behavior maintained by Bitcoin miners and Ethereum validators, driven by the long-term viability of the deflationary policies of both cryptocurrencies.
What is the 51% attack on Bitcoin?
The call 51% attack on Bitcoin refers to the possibility that a single entity has of taking control of the blockchain network, if it manages to dominate more than half, or 51%, of the hash rate of the blockchain.
In theory, this would allow the entity to take control of the blockchain network, allowing it to change or validate transactions that the rest of the miners would take as true. The entity could even interrupt the functioning of the blockchain and cause complete chaos in the market.
However, as Coin Metrics analysts noted, while this attack was theoretically possible, it has now become completely unviable, due to the degree of complexity and the costs involved.
The platform's analysts studied several fronts of a possible 51% attack on Bitcoin, ranging from the purchase of ASIC equipment to control more than half of the network's hash rate, to the manufacturing of this equipment and the cost of the electricity they would consume during operation.
And the 34% attack on Ethereum?
But, in addition to simulating the 51% attack on the Bitcoin blockchain, Coin Metrics analysts also analyzed the 34% attack on the Ethereum blockchain, in order to demonstrate the security of this network.
The 34% attack on Ethereum refers to the possibility that a staking platform like Lido could leverage liquid ether staking to take control of the chain.
However, as reported by the platform's analysts, there are no ways in which an entity could benefit from attacking the Bitcoin and Ethereum networks at present.
More than $70.000 billion is required to attack the main blockchains in the market
Coin Metrics' report concluded that a 51% attack on Bitcoin would cost over $40.000 billion in its most cost-effective scenario, while on Ethereum, a 34% on-chain attack would cost around $34.000 billion.
In conclusion, the platform highlighted that its new model not only highlights the financial viability of such attacks on the most powerful networks in the crypto market, but also exposes the strategic challenges that potential attackers would face if they wanted to attack. against Bitcoin and Ethereum.
“Bitcoin and Ethereum security has evolved to a point where the costs and risks associated with attacks are far from real,” Coin Metrics noted.
Currently, the costs and risks associated with 51% and 34% attacks far outweigh any potential benefits, while the benefits of mining and staking on these chains are proving to be increasingly attractive to their participants.
Continue reading: Security Alliance, an alliance created to secure the future of the crypto industry
