What Is a 51% Attack and How Does It Affect a Cryptocurrency Network?
A 51% attack occurs when a single entity gains control of more than half (51%) of a blockchain's total mining or staking power. This control allows them to exclusively order transactions and reverse previously confirmed transactions, leading to double-spending.
The primary effect is the loss of trust, network instability, and financial damage due to the successful reversal of transactions, which is critical for exchanges and users.
Glossar
Financial Damage
Loss ⎊ Financial damage in the context of cryptocurrency and derivatives represents the direct loss of capital resulting from adverse market movements or security breaches.
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.