How Does the Difficulty Adjustment Mechanism Affect the Cost of a 51% Attack?
The difficulty adjustment mechanism (DAM) is designed to keep the average block time consistent despite changes in total network hashrate. If an attacker suddenly introduces a large amount of hashrate for a 51% attack, the DAM will eventually increase the difficulty, making the attack more expensive to sustain over time.
However, the DAM is usually slow, meaning the initial cost is the primary barrier, but the ongoing cost is continuously inflated.
Glossar
Difficulty Adjustment Mechanism
Algorithm ⎊ The core of a Difficulty Adjustment Mechanism (DAM) within cryptocurrency networks, particularly proof-of-work systems, is a dynamically adjusting function designed to maintain a consistent block generation rate irrespective of fluctuating computational power.
Bitcoin Difficulty Adjustment
Adjustment ⎊ The Bitcoin Difficulty Adjustment is a core mechanism ensuring network stability and security within the proof-of-work consensus protocol.
Difficulty Adjustment
Calibration ⎊ Difficulty Adjustment represents a core algorithmic mechanism within proof-of-work cryptocurrency networks, dynamically modulating the computational effort required to mine new blocks.