Why Is a 51% Attack More Economically Feasible on Smaller, Less Popular Cryptocurrencies?
A 51% attack is more feasible on smaller cryptocurrencies because the total hash rate securing the network is much lower. This means an attacker needs to acquire significantly less computing power to gain a majority.
The cost to rent or purchase the necessary hash rate is often low compared to the potential profit from a successful double-spend, making the attack economically viable.
Glossar
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Market Capitalization Influence
Valuation Influence ⎊ Market Capitalization Influence describes the degree to which the total outstanding value of a cryptocurrency affects the pricing and perceived risk of derivatives referencing that asset.
Smaller Cryptocurrencies
Asset ⎊ Smaller Cryptocurrencies, often termed altcoins or micro-caps, possess significantly lower market capitalization and liquidity compared to established assets like Bitcoin or Ethereum.
Consensus Mechanism
Validation ⎊ Consensus mechanisms, within cryptocurrency, represent the procedural logic ensuring state agreement across a distributed network, critical for preventing double-spending and maintaining data integrity; their design directly impacts network security and scalability, influencing transaction throughput and finality times, particularly relevant in decentralized finance applications.