How Can a Smaller Coin Mitigate the Risk of a Hashrate-Based Attack? ⎊ Path

How Can a Smaller Coin Mitigate the Risk of a Hashrate-Based Attack?

Smaller coins can implement several strategies to mitigate hashrate attack risk. They can adopt "merge mining," piggybacking on the security of a larger chain like Bitcoin or Litecoin.

They can also use delayed block finality mechanisms, requiring more confirmations to deter double-spends. Another method is to modify the Proof-of-Work algorithm to be ASIC-resistant, favoring commodity hardware.

Finally, increasing the network's inherent difficulty through community support is key.

How Do Futures Contracts on Mining Hardware Relate to the Long-Term Security of a PoW Network?

How Do Merged Mining and Auxiliary Proof-of-Work (AuxPoW) Help Secure Smaller Coins?

Define ‘Basis Risk’ as It Relates to a Derivatives Contract Settled with a Delayed TWAP

What Is the Gordon Growth Model and Its Applicability to Crypto Terminal Value?

What Mitigation Strategies Can Smaller PoW Coins Employ against Hashrate Rental Threats?

What Is an ASIC-resistant Algorithm and How Does It Promote Decentralization?

In What Scenario Would a Developer Rent Hashrate for a New Coin Launch?

How Does a Delayed Block Finality Mechanism Help Defend against Double-Spends?

Glossar

Hashrate

Measurement ⎊ Hashrate is the quantifiable measure of the total computational power dedicated to solving the cryptographic puzzle required to mine a new block on a Proof-of-Work blockchain.