How Does a ‘51% Attack’ Relate to Network Security?
A 51% attack occurs when a single entity or group gains control of more than half of the network's mining hash rate (PoW) or staked coins (PoS). This control allows them to potentially block new transactions, reverse confirmed transactions (double-spending), and prevent other miners/validators from completing blocks.
It fundamentally compromises the integrity of the blockchain.
Glossar
Staked Coins
Yield ⎊ Staked coins represent a capital deployment strategy within decentralized finance, where cryptocurrency holdings are actively utilized in network consensus mechanisms, generating passive income for participants.
51% Attack
Control ⎊ : This event materializes when a single entity or coordinated group amasses over fifty percent of a Proof-of-Work network's total computational power, effectively gaining unilateral authority over block creation and ordering.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Economic Cost
Cost ⎊ Economic Cost, within the framework of cryptocurrency and derivatives, represents the total expenditure, both explicit and implicit, associated with participating in decentralized financial markets or attempting to manipulate the underlying blockchain.