Has the Rise of Hashrate Rental Markets Increased the Risk for Smaller Coins?

Yes, the rise of hashrate rental markets significantly increases the risk for smaller proof-of-work (PoW) coins. These platforms make it cheaper and easier for malicious actors to acquire the necessary hashrate to execute a 51% attack.

A 51% attack allows an attacker to control transaction ordering and double-spend their coins, leading to network instability and loss of confidence. Smaller coins often have less total hashrate, making them easier targets for such attacks compared to larger networks.

This accessibility lowers the barrier to entry for potential attackers.