What Is a 51% Attack, and How Does It Work?

In the world of crypto — abundant with hacks, social engineering, malicious software, and even fraudulent on-chain transfer requests — one threat stands out for its scale, targeting an entire blockchain ecosystem: the 51% attack. A 51% attack on a blockchain network refers to a type of exploit when an individual or a group controls over half — at least 51% — of network consensus. Usually, this kind of attack refers to blockchains that use proof-of-work (PoW) consensus where miners validate transactions, like Bitcoin (BTC) or Ethereum Classic (ETC). In the case of a PoW chain, a 51% attack entails controlling the majority of mining power, letting the attacker manipulate the chain.The possibility of such an attack is tied to the very nature of crypto — decentralization. Unlike a traditional financial system, like a bank, where a central authority controls and verifies all transactions, blockchains rely on decentralized networks of miners or validators to maintain consensus, a system where the majority agrees on which transactions are valid.To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io