Cost and complexity of execution of 51% of attacks on Ethereum
Ethereum, one of the most commonly used blockchain platforms, has been at the center of several high hacks in recent years. The infamous “HIVE” attack in 2016 is often cited as an example of a successful 51% attack, where hackers have taken control of over 75% of the mining power of the network. Although it may seem unlikely to perform such an attack today, costs and complexity have made it more likely than ever.
What is the attack 51%?
Simply, 51% of the attack occurs when a group of miners who control more than half of the network hashrat (i.e., a computer power needed to confirm the transactions on blockchain) can control the network. It allows them to:
- Control the miner pool : miners who control more than half of the hashrat can manipulate a network by setting up a level of difficulty, which affects the block reward.
- Reworing the validity of transactions
: with a great enough hashrat, the attacker may affect the validation process, which potentially leads to the malicious transactions of priority competing.
How much would it cost to execute 51% of the attack on Ethereum?
Estimation of accurate cost of executing 51% of the attack on Ethereum is challenging because it depends on different factors such as:
- Hashrate : The more hashrata can control, the greater the potential value of the attack.
- Disabilities level : High level of difficulty can make it difficult to manipulate network.
- The size of a mining pool : larger mining pools with multiple members can increase the potential value of the attack.
As stated, some estimates suggest that the execution of 51% of the attack on Ethereum would cost anywhere from $ 100 million to over $ 1 billion Bitcoin (BTC) or other cryptocurrencies.
Simplified calculation
To provide a rough assessment, assume a hypothetical scenario in which the attacker controls:
- 70% hashrata
- Big enough mining pool with 10,000 miners (relatively small but amazing group)
- The level of difficulty that allows easy manipulation
Using these numbers, we can evaluate the potential value of the attack in Bitcoin as follows:
- Assuming that the block reward is on the entire network of 50 BTC per block and striker that controls 70% hashrat
- With 10,000 miners who contribute to the pool and a large enough level of difficulty
- Estimated cost: $ 500 million – $ 1 billion
Are there organizations that could perform a successful attack of 51% on Ethereum?
Although it is difficult to determine certain organizations with proven records on the execution of 51% of the attacks, several groups showed expertise in cryptocurrency mining and the manipulation of blockchain:
- Samsun Mining Group : Chinese group known for its aggressive mining operations.
- Bitmain : the same company behind the popular Mining Platform Antpool, which participated in various high hacks.
- Technologies parity
: Cryptum development company with relationships with several notable hacking, including attack on 2016.
Conclusion
Although the execution of a successful 51% attack on Ethereum today may seem unlikely, it is crucial to remember that the cost and complexity of such surgery have increased over time due to progress in cryptography and network safety. Organizations with significant mining operations or expertise in Blockchain manipulation can potentially use these weaknesses to perform a successful attack.
However, it is also worth noting that many exchanges of cryptocurrencies, wallets and other platforms have been implemented by strong security measures, which is increasingly difficult for malicious actors to perform 51% of the attacks. As the Ethereum network continues to develop, we can expect increased supervision of his safety and potential vulnerability.