51% attacks in blockchain networks – is there a threat?

Blockchain networks are not simply networks, but rather distributed databases. In this regard, blockchain networks are the most secure distributed databases there are – but even in the most secure networks, there are sometimes security vulnerabilities. A 51% attack on a blockchain network is an example of such a security risk. This happens when a user on the blockchain network gains control of more than 50% of the mining power of a particular blockchain network

As a result, this attacker could make many more changes than a normal user. He can mine faster than anyone else, he can stop orders from other users, and he can prevent confirmation of new transactions. Thus, previous transactions can also be reversed, which means that coins could also be spent twice. With such a majority, it would also be possible to rewrite parts of the blockchain’s security protocols and affect the blockchain in many other ways.

Here’s how a 51% attack works
Cryptocurrencies run on a blockchain system that acts as a kind of database. It is a database that records all transactions that have ever been made on that blockchain. This means that all transactions that have ever been made on this blockchain are available for anyone to see and review by the public. This makes it nearly impossible for someone to issue or execute a coin or transaction with the same values twice. Each block of the blockchain network records every completed transaction and contains some details such as the amount of cryptocurrency sent, the address of the sender and the receiver, and even the timestamp.

For a large cryptocurrency like Bitcoin, a new chain or chained is created about every nine minutes. Once a block is created, it cannot be altered by fraudulent users, as this would be easily detected.

However, when a 51% attack occurs, the computing power of that particular blockchain network is controlled by the attacker. This allows him to control the blockchain, manipulate blocks, and prevent other users from mining new blocks and receiving rewards. He can also reject other users’ transactions and reverse their transactions.

This vulnerability could lead to double spending, which is the digital equivalent of spending counterfeit money in the financial market. This could have a negative impact on cryptocurrency, as it could lead to a loss of confidence among investors who have turned to cryptocurrency. A blockchain network that loses the trust of its users and investors is bound to fester.

Although such an attack is called a 51% attack, one does not necessarily need to have more than 50% of the network’s mining power to launch such an attack, but the chances of success here would be significantly lower.

All cryptocurrencies are vulnerable to 51% attacks, but the chances of success are low for Bitcoin and Ethereum networks. Attackers tend to target smaller and newer networks, although in 2018 there was an attack on Bitcoin that resulted in the loss of $18 million in exchanges. in 2019, there was another attack on the Ethereum blockchain in which over $1 million was stolen.

However, there is currently no actual threat from this theoretical attack possibility.