Bitcoin, the pioneering cryptocurrency, operates on a decentralized, trustless system secured by a network of miners. These miners dedicate computational power to validate transactions and add new blocks to the blockchain. But this very system, while revolutionary, is vulnerable to a potential threat known as a 51% attack. Understanding this threat and the security mechanisms in place to mitigate it is crucial for comprehending Bitcoin’s long-term viability.
Understanding the 51% Attack
A 51% attack occurs when a single entity or a collaborative group gains control of more than 50% of the Bitcoin network’s hashing power. With this dominant control, the attacker can manipulate the blockchain by:
- Double-spending: Reversing transactions they initiated, allowing them to spend the same Bitcoins multiple times.
- Preventing transaction confirmations: Blocking legitimate transactions from being added to the blockchain.
- Controlling block generation: Dictating which transactions are included in new blocks and re-ordering existing blocks.
While an attacker cannot create new Bitcoins out of thin air (violating the protocol’s rules) or alter past transactions
