Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Proof-of-work blockchain networks rely on decentralized mining for consensus and for protection from double-spending. Bad actors may try to gain a large proportion of the network hashpower to engage in what’s known as a 51% Attack. By controlling a majority of hashpower the double-spending protection can be overcome. We review proof-of-work mining and the ways that blockchains can remain safe from 51% attacks.
Let’s step back a moment and review the structure and workings of a permissionless, distributed, proof- of-work blockchain to learn how 51% attacks are possible.
Distributed blockchain networks consist of many computers running the same code while connected to each other via the Internet. Each computer is called a node and nodes can be located anywhere in the world.
The biggest networks have thousands of nodes with each node carrying a full copy of the entire blockchain. All nodes are in constant communication with...