How Does Proof-of-Activity Prevent a 51% Attack?
Proof-of-Activity increases the difficulty of a 51% attack by requiring an attacker to control a majority of both the network's hash rate (PoW) and the circulating coins (PoS). In a typical PoW system, an attacker only needs a majority of the hash rate.
With PoA, even if an attacker mines a block, they would also need to be selected as a validator to approve it. The random selection of validators makes it statistically improbable for an attacker to both mine a block and have enough stake to be chosen to validate it.
This dual requirement significantly raises the cost and complexity of a successful attack.
Glossar
Dark Pool Activity Impact
Activity ⎊ Dark Pool Activity refers to the execution of large-volume cryptocurrency transactions and derivatives block trades away from public order books, often through over-the-counter (OTC) desks or private matching engines.
Consensus Algorithm Security
Attestation ⎊ Consensus algorithm security, within cryptocurrency and derivative markets, centers on verifiable trust establishment, mitigating systemic risk inherent in decentralized systems.
Illicit Market Activity
Manipulation ⎊ Illicit market activity encompasses actions designed to artificially influence the price of a financial instrument.
Suspicious Trading Activity
Pattern ⎊ Suspicious Trading Activity, within cryptocurrency, options, and derivatives, often deviates from established statistical norms, signaling potential market manipulation or illicit activity.
Retail Trader Activity
Behavior ⎊ Retail trader activity is characterized by high-frequency, speculative behavior often driven by market sentiment and social media trends rather than fundamental analysis.
Crypto Market Activity
Transaction ⎊ Crypto Market Activity encompasses the aggregate volume and frequency of executed trades across spot and derivatives platforms for digital assets.
Order Book Activity Analysis
Analysis ⎊ : This involves the systematic examination of the limit order book's state ⎊ specifically the quantity and pricing of resting bids and offers ⎊ to infer immediate supply/demand dynamics and potential price direction.
User Activity Determinants
Determinant ⎊ Determinants are the quantifiable and qualitative factors that drive the volume, frequency, and nature of user interaction with crypto exchanges and derivative protocols.
Malicious Activity
Exploitation ⎊ Malicious activity within cryptocurrency, options trading, and financial derivatives frequently manifests as exploitation of vulnerabilities in protocols, market structures, or participant behavior.
Visible Market Activity
Activity ⎊ Visible market activity refers to the publicly available data on trading volume, order book depth, and price movements.