Home News Crypto Developer Predicts 2019 will be the ‘Year of the 51% Attack’

Crypto Developer Predicts 2019 will be the ‘Year of the 51% Attack’

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One crypto developer believes 2019 will be remembered as the yr of the 51% assault. | Source: Shutterstock

The co-founder and CEO of decentralized cloud storage community Sia, David Vorick, has predicted that 51% assaults will enhance dramatically in 2019. This comes sizzling on the heels of Ethereum Classic suffering such as an attack, as CCN just lately reported.

Sia Dev Portends Increasing Number of 51% Attacks

According to Vorick, who can be Sia’s lead developer, 51% assaults – the place a gaggle of miners positive aspects management of greater than 50% of the computing energy of a community – at the moment are a danger for main cryptocurrencies and never simply small cap-coins.

Vorick has blamed basic weaknesses in the protocols of the focused cash for the success of the assaults. Specifically, the protocols are usually not incentive-compatible, as is the case with Bitcoin:

Bitcoin builders try for one thing referred to as incentive compatibility. If a protocol has incentive compatibility, it implies that the optimum resolution for every particular person from their very own perspective can be the optimum resolution for the group as an entire. When protocols are incentive-compatible, people can be fully egocentric as a result of these egocentric actions will profit the group as effectively.

Bitcoin’s Protocol Design

bitcoin mining rig
Vorick says Bitcoin has incentive compatibility, however many different crypto networks don’t. | Source: Shutterstock

So why not simply copy Bitcoin’s protocol design if it’s that safe? According to Vorick, the majority of the cryptocurrencies have executed that, however then they made adjustments which broke the incentive compatibility.

Among the largest errors altcoin builders have made, per Vorick, consists of making it potential to make use of shared {hardware}. This is as a result of when the similar {hardware} is used to mine a number of cash, incentive compatibilities break down. Incentive compatibility additionally breaks down when there’s a shared algorithm amongst a number of cryptocurrencies:

When a number of cryptocurrencies share the similar proof of work algorithm, the similar {hardware} (even when that {hardware} is specialised) is ready to goal any of the cryptocurrencies and this disrupts the incentive compatibility in lots of of the similar ways in which ASIC resistance does.

Factors which have enabled 51% attacks embody the maturing of hashrate marketplaces, as this has allowed attackers easy and fast access to computing energy when trying to assault.

Reduced Cost of Attacking

Prior to the existence of hashrate marketplaces, attackers would have required an equal quantity of the graphics processing items (GPU) that have been defending a cryptocurrency. Expenses incurred to hold out such an assault have been prohibitive, and this ensured that GPU cash remained largely protected. The improvement of hashrate marketplaces has, nonetheless, made it potential to rent GPUs for a pair of hours at a fraction of the price.

Another improvement that has made shared {hardware} cash extra insecure is the development of giant mining farms. This has significantly been the case for cryptocurrencies whose hashrate contains a number of hundred thousand GPUs.

As an answer for the 51% assaults, Vorick has proposed that cryptocurrency exchanges enhance affirmation occasions for deposits. Additionally, Vorick has urged exchanges to undertake extra stringent danger administration measures whereas exercising extra diligence in selecting the cash they listing.

Featured Image from Shutterstock

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