Summary
On-chain crypto analytics firm CoinMetrics has released a research report that dismisses concerns about blockchain takeovers. The report states that the need for powerful mining rigs and the high cost of 51% attacks make takeovers impractical. The researchers estimate that a 51% attack on Bitcoin would require 7 million mining rigs, while Ethereum’s churn rate would require takeover attempts to last six months. The report also suggests that ideological attacks on Ethereum and Bitcoin would be thwarted by the high cost of manufacturing or purchasing the necessary mining machines. The upcoming Bitcoin halving is expected to cause a decline in hashrate, as less profitable miners exit the market. However, the report suggests that new, more powerful mining machines make takeover attempts increasingly difficult.
Key Points
1. CoinMetrics’ research report debunks fears of blockchain takeovers, stating that the need for more powerful mining rigs and the cost of 51% attacks make takeovers infeasible. This applies to both Bitcoin and Ethereum networks.
2. The report highlights that a 51% attack on Bitcoin would require 7 million mining rigs, while Ethereum’s churn rate limiting validators’ turnover would necessitate takeover attempts to last for six months.
3. The researchers estimate that mounting a 34% attack on Ethereum liquid staking protocols would cost over $34 billion in ETH, requiring the attacker to manage over 200 nodes and spend $1 million on cloud services for six months. They also mention that common crypto attack methods would be too expensive to be financially feasible.