How Does a “Long Range Attack” Specifically Target Older PoS Systems?
A Long Range Attack exploits the fact that in some older PoS systems, the entire history of the blockchain is not economically secured. An attacker who sold their stake long ago can use their old keys to sign a fraudulent, alternative history of the chain starting from a very old block.
Since the network only tracks current stakers, it might accept this longer, old chain. Newer PoS systems mitigate this with "checkpointing" or "economic finality," which prevents reorgs beyond a certain, recent point in time.
Glossar
Target
Precision ⎊ A target, within cryptocurrency derivatives and financial markets, denotes a predetermined price level or state serving as a focal point for trading strategies and risk management protocols.
PoS Systems
Consensus ⎊ Proof-of-Stake systems represent a class of blockchain consensus mechanisms where block creation and validation are determined by the quantity of cryptocurrency a participant holds and is willing to ‘stake’ as collateral against malicious behavior.
Long Range Attack
Horizon ⎊ The concept of a Long Range Attack, particularly within cryptocurrency derivatives and options trading, signifies a strategic maneuver exploiting temporal asymmetries inherent in market microstructure.