Can a Successful 51% Attack Break Immutability?
Yes, a successful 51% attack can temporarily break the probabilistic immutability of a blockchain. By controlling the majority of the hashrate, an attacker can create a longer, private chain that reorganizes the transaction history, reversing recent transactions (double-spending).
While the entire history of the chain is not permanently rewritten, the recent transactions that were considered finalized are reversed, undermining the network's core promise of transaction finality and immutability for those specific transactions.
Glossar
Options Break Even Point Definition
Calculation ⎊ The options break even point represents the price at which the underlying asset must trade at expiration for the option holder to neither profit nor incur a loss, factoring in the premium paid.
Ledger Immutability
Finality ⎊ The core characteristic of this concept is the cryptographic guarantee that once a record is added to the ledger, it cannot be retroactively altered or deleted.
Successful Trader Losses
Loss ⎊ Successful trader losses refer to the financial reductions experienced by profitable market participants due to the default of other traders on a derivatives exchange.
Crypto Options Break Even
Break-Even ⎊ The Crypto Options Break-Even point represents the specific price level the underlying cryptocurrency must reach at the option's expiration for the trader to incur neither a profit nor a loss on the entire derivative transaction.
Successful Loan Transactions
Transaction ⎊ A successful loan transaction in decentralized finance refers to the complete cycle of borrowing and repayment without triggering a liquidation event.
Data Immutability Mechanism
Cryptography ⎊ The Data Immutability Mechanism relies heavily on cryptographic hashing, where each new block's header contains a hash of the previous block's header, creating a chronological and tamper-evident chain.
Successful Miner Payout
Payout ⎊ Successful miner payout refers to the reward, consisting of a block subsidy and accumulated transaction fees, distributed to the network participant who successfully validates a new block and adds it to the blockchain.
Ledger Immutability Question
Philosophy ⎊ The ledger immutability question probes the core philosophical tenet of blockchain technology: the absolute finality and unchangeable nature of recorded transactions.
Consensus Mechanism Attacks
Incentive ⎊ The economic structure of the mechanism, including block rewards and transaction fees, is designed to align the self-interest of participants with the security and honest operation of the network.
Calculating Break Even
Calculation ⎊ Calculating the break even point for a crypto option position determines the underlying asset price at expiration where the total profit or loss equals zero.