BitcoinMachine
TECHNICAL_DOC // BLOCKCHAIN / 51-PERCENT-ATTACK
51%
ATTACK
A 51% attack occurs when a single entity controls more than half of Bitcoin's total hashrate, enabling them to mine blocks faster than the honest network in expectation. This allows double-spending confirmed transactions and selectively excluding transactions, but cannot create coins from nothing, steal from unrelated addresses, or forge signatures.
ATTACK CAPABILITIES — WITH >50% HASHRATE
✓ Double-spend confirmed transactions: 1. Send tx to victim (gets N confirmations on public chain) 2. Secretly mine alternative chain excluding that tx 3. Release longer chain → public chain reorgs → original tx gone 4. Attacker keeps goods received + coins ✓ Block specific transactions: Refuse to include targeted addresses in mined blocks ✓ Earn more block rewards: By mining selfish mining strategies (see selfish mining) ✗ Cannot steal from arbitrary addresses (no signing key) ✗ Cannot create new bitcoins beyond coinbase reward ✗ Cannot change the total supply or protocol rules ✗ Cannot reverse transactions buried under many blocks (probability decreases exponentially with depth)
Cost of Attack on Bitcoin (2024)
ECONOMIC SECURITY
The cost of acquiring 51% of Bitcoin's hashrate makes attacks economically irrational against the main chain — the attacker would lose more than they could steal.
Bitcoin hashrate (2024): ~600–700 EH/s To attack: need ~300–350 EH/s of additional hardware ASIC hardware cost (Antminer S21, ~200 TH/s): ~$5,000 per unit To achieve 350 EH/s: 1.75 million units × $5,000 Hardware cost: ~$8.75 billion Plus: Power: ~35 GW = massive infrastructure cost Opportunity cost: no block rewards while attacking Market impact: Bitcoin price would likely collapse Smaller PoW chains (ETC, BCH) have been successfully 51%-attacked at far lower cost — hashrate is security.
Confirmations as Security
PRACTICAL DEFENSE
Waiting for more block confirmations makes double-spend attacks exponentially more expensive. Satoshi's original paper quantified this probability.
Probability attacker can catch up from N blocks behind (attacker has q fraction of hashrate): p = 1-q (honest), q (attacker) If q < p: probability of catching up → 0 as N grows Satoshi's formula (q=0.1, 6 confirmations): P(attacker succeeds) ≈ 0.00024 (0.024%) Practical confirmation thresholds: 0 confirmations (0-conf): high risk, accept for small amounts only 1 confirmation: low risk for small amounts 6 confirmations: standard — extremely low risk 100 blocks: coinbase maturity requirement
TERMINOLOGY_INDEX
51% Attack
Control of majority hashrate enabling double-spend of confirmed transactions via private longer chain.
Double Spend
Spending the same coins twice by invalidating a confirmed transaction via a chain reorg.
Hashrate Security
The total network hashrate determines attack cost. Bitcoin's enormous hashrate makes attacks prohibitively expensive.
Confirmation Depth
Number of blocks mined after a transaction's block. Each additional block exponentially reduces reorg probability.