A stunning 2 million Ether (ETH), or around $3.6 billion, are apparently waiting in queue to strengthen the Ethereum network, proving once again how powerful Ethereum is. This astonishing number has inspired several fascinating hypotheses: A 51% assault on the Bitcoin network could hypothetically be carried out with this amount of Ethereum.
First, it’s important to stress that a similar assault on Bitcoin using Ethereum is not theoretically possible. Ethereum cannot directly affect Bitcoin’s operations since these are two independent blockchains with different consensus procedures. But the amount of money represented by the Ethereum in issue is sizable enough to buy the Bitcoin required to plan such an attack.
A 51% assault happens when one entity controls more than half of a blockchain network’s hash rate or mining power, for context. The attacker could be able to modify transactions and double-spend coins with this control, compromising the network’s trustworthiness. As a proof-of-work blockchain, Bitcoin is technically open to such an assault.
Though it would not be as easy as it seems, turning this hypothetical potential into reality would be difficult. Due to increased demand, buying a sizeable amount of Bitcoin to take control would probably cause its price to skyrocket. The practicality of the attack would be complicated by this abrupt price increase, which would demand additional resources.
Furthermore, ensuring transparency, security, and trust is the core purpose of blockchain technology. These tenets are in conflict, and a 51% assault would have disastrous effects on the network’s reputation and value as a result.
Even while the huge amount of Ethereum that is sitting in anticipation of protecting the Ethereum network is remarkable, its application for a fictitious 51% attack on Bitcoin is only theoretical and far from feasible.