Recently, a link shared on Reddit unveiled a site that estimates the expense for a 1-hour 51% attack on various proof-of-work cryptocurrencies such as Bitcoin and Ethereum. Shockingly, it shows that some smaller PoW networks can be overrun at a cost of $0. This has raised security concerns about PoW's reliability for smaller cryptocurrencies.
Crypto community in shock
The site demonstrates how mining might can be misused to dominate smaller networks, image provided by pixabay.com
The site, crypto51.app was just shared on Reddit a few hours ago by user xur17. The platform aims to spotlight certain limitations in PoW systems, particularly when the hash rate is lower.
Bitcoin For illustration, has a massive hash output of 33,633 PH/s. Ethereum follows with its own impressive hash rate of 215 TH/s, given its complex mining technique.
The interesting part begins as we delve deeper down the list. Projects like Ethereum Classic have a significantly lower hash rate, just 6 TH/s compared to Ethereum's 215. Consequently, the estimate to attack ETC for an hour is pegged at $10,500.
Bytecoin , a privacy-centric cryptocurrency, initially one of the first of its kind, can be compromised for a mere $613. Monero A tiny project called Catcoin, with only a gigahash of hash power using Scrypt, could theoretically be hit for nothing, despite its $11 million market cap.
Calculating the attack costs
How does the site arrive at these attack costs?
Per the site's account, it relies on public data from NiceHash, a service offering short-term rental of extensive mining hardware for almost any cryptocurrency, enabling immense computational power. hash rate can be procured for competitive prices.
Typically, NiceHash is employed to lease hash power and direct it to a desired mining pool, yielding its users the pertaining output. However, with so much available power, it seems NiceHash and similar services could potentially be used to assault smaller networks effectively.
NiceHash-able?
Beyond attack costs, the site includes a percentage named 'NiceHash-able'. According to the creator, this reflects how much power NiceHash could generate compared to the network. A higher percentage increases the likelihood of a successful attack.
Bitcoin and Ethereum's rates remain low at 2% and 3%, making a weaponized NiceHash attack infeasible on them. However, Ethereum Classic has an extraordinarily high 95% NiceHash-able rate, while Bytecoin's is at 219%—meaning success is almost certain.
And what about smaller projects? The figures look even more alarming. An X11 project like Cream, valued at $557,368, boasts an overwhelming 1,910,730% NiceHash-able rate (at no cost). Earlier mentioned Catcoin is similarly precarious with a NiceHash-able rate of 1,419,281%.
Notable mid-range projects include Dash with 39%, Zcash at 23%, Bitcoin Gold soaring to 333%, Bitcoin Private towering at 1,085%, and Dogecoin at 6%.
Why do this?
This clarifies the site's intention on its about page :
The site aims to raise awareness of the risk of 51% attacks on lesser-known cryptos, not to incite or aid in doing so, but to stimulate discussion about the issue and possible solutions.
The site's creation was sparked largely by a recent attack on Bitcoin Gold, with losses allegedly reaching $18 million.
The site outlines ways to mitigate such risks, suggesting shifts to proof-of-stake models or using ERC-20 and similar token systems that forego PoW mining.
The community largely values the site's effort in highlighting this attack pathway. Redditor ThomasVeil remarks:
Seems to predict the downfall of PoW except for major networks, hinting that smaller ones are vulnerable to power shifts.
Time to reflect
It might be time for smaller crypto projects to reconsider PoW's suitability, image sourced from pixabay.com
While the website doesn't claim that PoW is inherently flawed or obsolete, it questions its fit for smaller initiatives that attract less hash power compared to prominent networks. It's uncertain how these projects will respond, but it undeniably prompts reflection.
