What Is the ‘Cost of Attack’ and How Does Network Size Increase It?
The 'cost of attack' is the economic resource required to successfully compromise a blockchain, such as executing a 51 percent attack. For Proof-of-Work (PoW), it is the cost of acquiring sufficient hashing power.
As the network grows, the number of miners and the total hash rate increase, exponentially raising the cost of acquiring 51 percent. This increased security is a direct benefit of the network effect.
Glossar
Total Hash Rate
Computation ⎊ Total Hash Rate represents the collective computational power dedicated to a blockchain network, fundamentally influencing its security and operational efficiency.
Network Size
Metric ⎊ Network Size serves as a fundamental metric for assessing the security and decentralization characteristics of a cryptocurrency protocol.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Cost of Attack
Capital ⎊ The estimated financial outlay required for an attacker to acquire sufficient hash power or stake to successfully compromise the network's consensus rules represents the primary measure of this concept.