There are many concerns to take into account when dealing with cryptocurrency. One of the bigger threats to date is the 51% attack. Some websites and criminals specialize in this specific type of attack. One website portrays ho cheap it is is to cripple smaller-cap currencies.
If the recent Bitcoin Gold attack is any indication, a new wave of 51% issues will arise. Any cryptocurrency with a very small network is prone to such developments. This is especially true when the number of network nodes is rather low as well. Bytecoin, for example, could be subject to double spend attacks for $557 an hour.
More 51% Attack Options
While this is worrisome, it seems the worst has yet to come. There is no need for criminals to buy mining hardware these days. Instead, they can just rent it from various platforms, including Nicehash. This removes the electricity costs for attackers, effectively making their 51% attack more lucrative.
Although this website is information, the results are quite worrisome So many users rent out mining hardware these days. While that is positive in a way, it can also become a powerful weapon in the wrong hands. Major currencies such as Bitcoin and Ethereum will remain safe from harm, for the time being. Smaller currencies, such as Bytecoin, Bitcoin Private, ad MonaCoin are all cheap to attack.
The big question is whether or not an incentive exists to attack such currencies. None of the projects has a big market cap or any sort of popularity to speak of. As such, criminals would not benefit from double spending funds unless there are proper places accepting these altcoins. In the case of Bytecoin et al, the options to spend it remains fairly limited.
Header image courtesy of Shutterstock