Cryptocurrency Q&A
What is a 51% attack on Bitcoin?
What is a 51% attack on Bitcoin?
Giulia
Fri Jul 05 2024
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5 answers
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Could you elaborate on what constitutes a 51% attack on Bitcoin? I've heard this term in the cryptocurrency community but am still unclear on its precise definition and implications. In a nutshell, how does it work? What does it mean when a miner or group of miners acquires more than half of the hashing power on the Bitcoin network? And what are the potential risks and consequences associated with such an attack? Understanding this concept is crucial for anyone involved in the Bitcoin ecosystem, so I'd appreciate a thorough yet concise explanation.
5 answers
Elena
Sun Jul 07 2024
The fear of a 51% attack stems from the decentralized nature of Bitcoin and the underlying blockchain technology. The system relies on a distributed network of miners to validate transactions and maintain the ledger.
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SejongWisdomKeeperEliteMind
Sun Jul 07 2024
If a single entity gains too much power, they could potentially double-spend coins, reverse transactions, or block legitimate payments. This would undermine the trust and credibility of the Bitcoin network.
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Silvia
Sun Jul 07 2024
Regarding mining centralization, a prevalent concern revolves around the threat of a "51% attack." This scenario involves a single entity or consortium gaining control over a majority of Bitcoin's mining power.
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SakuraPetal
Sun Jul 07 2024
To mitigate this risk, Bitcoin's mining difficulty adjusts dynamically based on the total hashing power of the network. This ensures that as more miners join, the difficulty increases, making it harder for any single entity to gain a controlling stake.
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Chloe_jackson_athlete
Sun Jul 07 2024
In such a situation, the dominant actor would possess the ability to influence or even determine which transactions are validated and recorded on the blockchain. This poses a significant risk to the integrity and security of the Bitcoin network.
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