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What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍 What is 51% Attack?

 

 One of the terms frequently heard in the cryptocurrency world is the 51% attack. So, what is this attack and how does it happen? In this article, we will explain what the 51% attack means and how it affects the security of cryptocurrencies. The 51% attack is when a group of miners who hold the majority on a cryptocurrency's blockchain attempt to manipulate transactions on the network. Blockchain technology needs miners to verify and record transactions. Miners compete with each other to confirm transactions, and in return they receive cryptocurrency rewards. In the process, they follow the longest blockchain of the network and this chain is also the most reliable. However, if a group of miners controls more than half of the network, then they can change the blockchain as they wish. For example, they can cancel previous transactions, block rewards from other miners, or spend the same cryptocurrency multiple times. In this way, the reliability and value of the cryptocurrency can be severely damaged. It takes a lot of processing power and resources to make a 51% attack. Therefore, this attack is very difficult or impossible for major and popular cryptocurrencies. However, for small and little-known cryptocurrencies, this attack can be carried out more easily. Therefore, when investing in cryptocurrencies, it is necessary to pay attention to factors such as the security and decentralization of the blockchain. The 51% attack is one of the biggest threats to the cryptocurrency world. To prevent this attack, cryptocurrencies can take different measures. For example, they can adjust the mining difficulty, use different consensus mechanisms, or increase the decentralization of the network. Cryptocurrency users can also protect themselves by choosing trusted exchanges and wallets or waiting for their transactions to be verified.

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