Cryptocurrencies have recently been subjected to 51% attack where the attackers maliciously engaged in double spending. Recently, a website has been created to make an estimation of the cost involved in the double spending attack. The site developer has commented:
“There was an attack against Bitcoin Gold a few days ago, which made me curious what the cost of an attack would be with rented hashing power. I did the math and was honestly kind of shocked – someone could attack a cryptocurrencies worth close to a billion dollar for < $10k an hour and even less than that if you include the block rewards.
This got me to calculate the same figures for other coins, and again it was cheaper than I thought it should be. The goal of the site is to drive more attention to what I see as a pretty glaring problem with these smaller coins. Hashing power is easily retargetable, so not only can people rent hashing power, the larger mining pools can redirect hashing power at smaller coins for a few hours to attack them.”
However, in contrast to this website, others have higher cost estimation involved in the 51% attack. The costs of the crypto mining rigs are very high. The necessary hardware to orchestrate the attack on any cryptocurrency is massive. It requires the consumption of large amount of electricity and server farms filled with top-tier rigs. An attack on bitcoin network using a hardware would cost around $1 billion with an electricity cost exceeding $500,000.
The service from NiceHash can be accessed for renting the hashing power. Xur 17 of Crypto51.app stated that it is already equipped with the required hardware for bringing altcoins together. Nicehash is characterised by 2% of the necessary hardware to attack the bitcoin network. It clearly indicates that the hardware can easily attack networks like Bytecoin, Bitcoin Private, MonaCoin and Bitcoin Gold and others.
Only a week before, both Bitcoin Gold and Verge encountered 51% attack, whereby, the former lost $18 million due to this event.
The domain of crypto news erupted due to this major successfully accomplished double spending attack. There are speculations regarding crypto heist being the master mind behind this astronomical operation. As per the views of Crypto51.app, it is feasible to make use of NiceHash for taking over hashrate of Bytecoin. It has a net worth more than $1 billion for each hour. However, Litecoin’s Charlie Lee is one of those entities who is seriously concerned about the numbers visible on the website.
BCFocus has recently reported the entire event involved in the 51% double spending attack on Bitcoin Gold.
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