Vitalik Buterin, founder of Ethereum ($ETH), and a closely followed figure in the crypto market, has released a new statement.
In an interview with Wu Blockchain, Chinese crypto journalist Vitalik Buterin claimed that Binance’s 51% attack on Ethereum would fail, resulting in billions of dollars in losses.
A 51% attack occurs when a single entity gains control of a large portion of a network’s mining hash rate (PoW) or tokens at stake (PoS).
Vitalik said there were 51% attacks. $ETH Building a network by a major service provider like Binance will likely fail, but if it succeeds it will cost them billions of dollars.
“Even if Binance were to attempt a 51% attack on the Ethereum network, it would fail. Even if it were successful, it would cost billions of dollars, although the probability is very low.”
Buterin said his argument is based on the basic workings of Ethereum’s proof-of-stake (PoS) consensus mechanism, known as Beacon Chain.
At this point, Buterin pointed out that a 51% attack is much more difficult on PoS systems than on Proof-of-Work systems, where you need to control a large portion of the computing power.
According to Buterin, a potential 51% attack on PoS systems requires controlling a majority of the stake. $ETH To be successful. As a result, an attacker would need to accumulate and control over 16.8 million pieces of data. $ETHis worth tens of billions of dollars to succeed.
In this regard, Mr. Buterin said: $ETH The staking model contributes to network security and states that in the event of a 51% attack, mechanisms such as minority soft forks, penalties, and inactive leaks can instantly consume billions of dollars and harm attackers.
Buterin said about 30 million people $ETH The current bet is that a 51% attack is theoretically possible with 10 million. $ETHrealistically you would need 15 million controls $ETH. This represents a cost of billions of dollars.
From a monetary value perspective, Buterin argued that Ethereum currently maintains an almost excessive level of security.
Vitalik Buterin’s clear rejection of the possibility of a 51% attack on Ethereum led by Binance highlights the strength of the network’s cryptoeconomic design.
*This is not investment advice.
