Security Considerations
Understand key blockchain security considerations by exploring the 51% attack threat in Proof of Work and Proof of Stake systems. Learn how consensus mechanisms maintain trust and prevent double-spending, while grasping the challenges and rarity of successful attacks on blockchain networks.
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By using cryptography and consensus mechanisms, blockchains provide a secure and reliable way to share data and transactions without the need for a third party. However, we have to remember that "secure" does not mean "invulnerable."
51% attack
The primary and most common risk for a blockchain is the so-called 51% attack. It allows the attacker to potentially manipulate the blockchain’s ledger by reversing confirmed transactions, double-spending coins, and preventing new transactions from being confirmed. This attack is considered one of the most serious security threats for any blockchain because it can lead to a complete breakdown of the network’s trust and reliability. Despite the severity of the attack, its occurrence is fortunately quite rare.
A 51% attack is a type of attack that is specific to the blockchain platform. The most common goal of this attack is to successfully spend crypto twice (double-spending). But how can this happen?
Let’s look at a brief example for clarification. If a luxury watch shop accepts crypto payments (let’s say Bitcoin), an attacker could buy the watch and transfer 20 Bitcoin to the ...