Bitcoin, Crypto currency, Blockchain

How to protect yourself Altcoins against 51% attacks?

839f21a5a492dbb96f147ca5070957d4 - How to protect yourself Altcoins against 51% attacks?

While the “big” decentralized crypto-currencies such as Bitcoin and Ethereum to ensure the security of your Blockchain by Proof of Work the matter for smaller Blockchain projects is more difficult.

While Bitcoin can be immune to be due to the extremely high Hashrate is pretty safe from 51% attacks, so this is not for Altcoins, they usually have a much lower Hashrate than Bitcoin, and can often be attacked with a fraction of the Hashpower of the Bitcoin network. This can be quite lucrative, it was expected by earlier more often.

Even today, it always comes back to successful 51% attacks, such as, for example, in September 2018 as a Bitcoin Gold victim of such an attack. However, have removed this type of attacks in recent times tend to be. A few years ago it was still very much wide of the Altcoins spread to do with 51% attacks “flat”.

So what has changed since then?

1. Token no Coins

Particularly popular is it is today, his projects on other platforms. Only the least-projects to build today your own Blockchain. The vast majority just write a Smart Contract with a Token-function. As a result, the created Token will be secured automatically by the “mother”-the Blockchain, you can save having to Worry about the safety more or less. It is, however, also dependent on the scalability and functionality of the “mother”-the Blockchain. Striking the is in the Top 20 projects relatively few Token projects. Within the Top 100 but a few. Token means that this smart project Contract is based, and Coin means that this project uses a Blockchain

2. Alternatives to Proof of Work will be popular

Other projects will back up your projects before 51% attacks, in that they just give up on Proof of Work. Altcoins have thought of as a “green Alternative” to Proof of Work, the most diverse consensus Algorithms. How useful and safe they are, it was now time to go. Nowadays, there are Proof of Authority, Proof of Stake, delegated Proof of Stake, Proof of Burn, and many more. Very noticeable is that in the Top 20 projects (delegated) Proof of Stake seems to be gaining ground.

Also Vitalik Buterin is a big Fan of Proof of Stake and is planning to have in the future Proof-of-Work for always Ethereum.

3. Centralized projects can not be (from the outside), chopped

Not to make, while totally absurd, a crypto-currency project Central but, unfortunately, quite Commonplace. Many projects have adopted a “decentralization”s thoughts, in the meantime, complete and manage their Blockchain in a closed System. You can make a stop…

4. Delayed Proof-of-Work

What can, however, do projects, want to run your own Blockchain, decentralized want to be, and the best Proof of Work want to leave? For these projects, there is now a solution: Delayed Proof of Work.

Simplified, it is said in the case of delayed Proof of Work is the Altcoin with the Hashpower of the Bitcoin network protected. The Status of the “small” Blockchain is stored every 10 minutes in a Bitcoin Block. Someone is now trying to perform the “small” Blockchain reorganize a double-spent, then it is first looked up as the Status in the last Bitcoin Block was. This speaks to the last Bitcoin Block, then the reorganization is rejected. Thus, a Hacker will remain so only 10 minutes time to a double-spent, which is more or less impossible. To drive a successful attack, he should be able to also reorganize the Bitcoin Chain is aware of what is unlikely.

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