51% Attack

A 51% attackA 51% attack (or majority attack) is a potential attack on a blockchain network where a single entity or group of entities gains control of... (or majority attack) is a potential attack on a blockchainThe blockchain is a digital ledger that records transactions in a secure and decentralized manner. Think of it like a shared spreadsheet that is constantly... network where a single entity or group of entities gains control of 51% or more of the network’s hash rateWhen mining cryptocurrency, hash rate refers to the speed at which your computer can complete a specific calculation to validate a block on the blockchain.... This would allow the attacker to have control over the network and perform various malicious activities such as double-spending, preventing transactions from being confirmed, and excluding or modifying transactions.

The attack is considered bad because it violates the fundamental principles of decentralizationPlatforms in the crypto industry may go decentralized to remove intermediaries and create a trustless environment, allowing for greater security and privacy for users. Decentralization... and immutability of blockchain technology. It can undermine the security and trust of the entire network, leading to a loss of confidence and value in the affected cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain....

In addition, the attack can have severe economic consequences, such as destroying the value of the cryptocurrency, making it difficult for legitimate users to transact, and causing a significant loss of confidence in the blockchain network. Therefore, it is important for blockchain networks to have mechanisms in place to prevent such attacks and maintain the integrity and security of the network.