Bitcoin
Bitcoin (BTC)
$67,079.00 0.19526
Bitcoin price
Ethereum
Ethereum (ETH)
$3,515.66 -0.07758
Ethereum price
BNB
BNB (BNB)
$594.01 0.03392
BNB price
Solana
Solana (SOL)
$173.72 2.69303
Solana price
XRP
XRP (XRP)
$0.5960630 3.50275
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000181 1.31161
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000122 -3.98624
Pepe price
Bonk
Bonk (BONK)
$0.0000309 -2.10232
Bonk price
Bitcoin
Bitcoin (BTC)
$67,079.00 0.19526
Bitcoin price
Ethereum
Ethereum (ETH)
$3,515.66 -0.07758
Ethereum price
BNB
BNB (BNB)
$594.01 0.03392
BNB price
Solana
Solana (SOL)
$173.72 2.69303
Solana price
XRP
XRP (XRP)
$0.5960630 3.50275
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000181 1.31161
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000122 -3.98624
Pepe price
Bonk
Bonk (BONK)
$0.0000309 -2.10232
Bonk price
Bitcoin
Bitcoin (BTC)
$67,079.00 0.19526
Bitcoin price
Ethereum
Ethereum (ETH)
$3,515.66 -0.07758
Ethereum price
BNB
BNB (BNB)
$594.01 0.03392
BNB price
Solana
Solana (SOL)
$173.72 2.69303
Solana price
XRP
XRP (XRP)
$0.5960630 3.50275
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000181 1.31161
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000122 -3.98624
Pepe price
Bonk
Bonk (BONK)
$0.0000309 -2.10232
Bonk price
Bitcoin
Bitcoin (BTC)
$67,079.00 0.19526
Bitcoin price
Ethereum
Ethereum (ETH)
$3,515.66 -0.07758
Ethereum price
BNB
BNB (BNB)
$594.01 0.03392
BNB price
Solana
Solana (SOL)
$173.72 2.69303
Solana price
XRP
XRP (XRP)
$0.5960630 3.50275
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000181 1.31161
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000122 -3.98624
Pepe price
Bonk
Bonk (BONK)
$0.0000309 -2.10232
Bonk price

BTC and ETH safe from 51% attacks, Coin Metrics cites using cost barriers

btc-and-eth-safe-from-51-attacks-coin-metrics-cites-using-cost-barriers
Edited by
News
BTC and ETH safe from 51% attacks, Coin Metrics cites using cost barriers

Crypto intelligence firm Coin Metrics has revealed in its latest research that it has become impractical for nation-states to dismantle the BTC and ETH network through 51% attacks, given the prohibitive expenses involved.

A 51% attack involves gaining majority control over a network’s hash rate in proof-of-work systems like Bitcoin or staking in proof-of-stake networks such as Ethereum, allowing for possible manipulation of the blockchain.

The study, conducted by Lucas Nuzzi, Kyle Waters, and Matias Andrade of Coin Metrics, introduces the “Total Cost to Attack” (TCA) metric to estimate the expenses involved in such malicious activities. Their findings suggest that attacking either Bitcoin (BTC) or Ethereum (ETH) would not be financially feasible or profitable for attackers, essentially nullifying the incentive for such actions.

For Bitcoin, the attempt to gain control would necessitate acquiring around 7 million ASIC mining rigs, an investment of about $20 billion. However, the market lacks the availability of such a vast number of ASIC rigs, and even if a potential attacker decided to manufacture them, the cost would still exceed $20 billion.

BTC and ETH safe from 51% attacks, Coin Metrics cites using cost barriers - 1
Producing S9 mining rigs would incur costs exceeding $20 billion | Source: Coin Metrics

The scenario renders the attack not only impractical but also economically inefficient, with the most advantageous double-spend attack yielding a mere 2.5% return on a hypothetical $40 billion expenditure to gain $1 billion.

Ethereum faces a similar situation with its transition to a proof-of-stake model, where the report evaluated the feasibility of a 34% attack by Lido validators. The analysis concluded that any attempt to compromise the Ethereum network using Liquid Staking Derivatives (LSDs) would be both costly, exceeding $34 billion, and time-consuming, taking up to six months due to the churn limit, which restricts immediate stake deployment.

BTC and ETH safe from 51% attacks, Coin Metrics cites using cost barriers - 2
Attacking Ethereum with LSDs would cost over $34 billion | Source: Coin Metrics

Additionally, the logistical challenge of managing over 200 nodes and incurring significant expenses, such as $1 million on Amazon Web Services, further diminishes the plausibility of such an attack.

Nic Carter, a partner at Castle Island Ventures, commended the report for providing a detailed and empirical examination of the impracticality of 51% attacks on these leading cryptocurrency networks.

He noted that previous analyses lacked the concrete, data-driven approach seen in Coin Metrics’ research, marking it as a pivotal contribution to understanding the security and resilience of Bitcoin and Ethereum against potential nation-state-level threats.