51% attack in cryptocurrency
How are you?Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah.....
Today the topic of my discussion is 51% attack so I would get you know that what is this and how it is working and at last I would be here with you with conclusion of my post.
We all know that at blockchain mining can occur and 51% attack in a cryptocurrency is a situation when 1 miner or group of miners have more than 50% of their mining power at a specific Blockchain. Due to 51% attack Malaysia activities because 51% attack let those miners to have significant control over a blockchain.
I want to give you guys detailed understanding about 51% so for that reason first of all mining concept should be clear in your mind that it is a process of verification and validation of new transactions that are being added at a blockchain. When miners solve complex mathematical problems and new block add at the chain then as a reward they also receive newly minted coins.
Miners are spread at globe and no single person or single miner can have extra control at a particular blockchain because blockchains are always decentralized and that's why they make cryptocurrency more safe and secure so if there is a miner who is taking control of more than 50% mining power then there could be very high chances that minor is trying to manipulate the system and carrying a 51% attack.
Here I'm explaining in detail that how 51% attack is working.
Double spending
If I talk about normal transactions then when a specific or a particular transaction occurs and once it at the blockchain then it cannot be reversed in normal cases because it becomes irreversible but if there is someone who is trying to manipulate the blockchain then he would try to create an alternative version of blockchain in which he would try to spent same coins but in different way. For making blockchain version longest he would try to use his own mining power and in this way he would effectively erase the original transaction and permit the blockchain to spent same coins again. This is one of the major risk of 51% attack that in this way double coins are spend.
Transactions reversal
I have already discussed it in about point of double spending that and attacker before manipulation always try to create an alternative version of blockchain at which he over control transactions and transactions that have been confirmed already attacker maybe able to reverse those transactions.Manipulator or attacker can do it by overwriting of the original blocks so that it may look like that transactions have not occurred.It leads to chaos at blockchain and then people consider it difficult to trust at blockchain.
Network halting
When attacker over control the mining power then he deny to include transactions in block that he mined so in this way it brings the blockchain or network towards halting and cause the blockchain to standstill. Due to this significant financial losses may occur and there could be a lot of crisis at the blockchain.
Through all this discussion that I have with you today about 51% attack it is very clear that it's a negative thing but plus point is this it's not very easy to do because there is a significant need of computational and financial power as well as of electricity so it is not manageable by everyone but if someone is doing this and trying to manipulate a particular blockchain then there should be penalty for that.
Hopefully my today's discussion would be fruitful for all of you and today you have learned many more from my post.
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Regards,
@theentertainer
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