Security Measures Make Major Attacks Unlikely
Recent research has illuminated the economic impracticalities of launching successful attacks on Bitcoin and Ethereum, two of the world’s leading cryptocurrencies. According to a research paper released on February 15, the costs involved in executing 51% and 34% attacks on Bitcoin and Ethereum, respectively, are so substantial that they render such attempts economically unviable.
Understanding the Complexity of Potential Attacks
High Costs Deter Malicious Attempts
A 51% attack, where an individual or group tries to control over half of a blockchain’s mining power to manipulate its ledger, and a 34% attack, aimed at undermining consensus in proof-of-stake or BFT networks, are both considered major threats. However, the study’s findings suggest the financial burden of these attacks far exceeds any potential gains.
For Ethereum, launching a 34% attack as of December 31, 2023, would require an estimated $34.39 billion, with Ethereum’s coin price at $2,279. Additionally, it would take until June 14, 2024, for an attacker to amass enough control to pose a threat.
Bitcoin’s security mechanisms present similar economic hurdles. An attacker would need over $20 billion to produce the ASIC mining units necessary for a majority control, a near impossibility given the scarcity of microprocessors. Collaboration with hardware manufacturers, another theoretical approach, is deemed unlikely due to supply-chain constraints and the exorbitant costs of operating such a vast array of machines.
High Costs and Risks Outweigh Any Potential Gains
The research concludes that the security infrastructure of both Bitcoin and Ethereum has matured to a point where the financial and logistical challenges of mounting attacks far exceed any conceivable rewards. This evolution in security measures assures users of both networks that their investments are safeguarded against economically irrational attacks.
