The Privateum Solution-Research Breakthrough 2
When it comes to the security and integrity of a Blockchain, nothing is quite as scary as the prospect of a 51% attack.
Broadly speaking, a 51% attack is essentially a ‘hack’ of a Proof-of-Work (PoW) blockchain that allows hackers to do a variety of malicious activities which in the short term may be financially beneficial but will ultimately destroy a cryptocurrency and plummet the price. In other words, an attacker or a group of attackers gain control of 51% or more of the computing power or network’s mining hash rate and reverse transactions that have already taken place, in a blockchain, in what has come to be known as ‘’double spending’’.
Blockchain is programmed in such a way that it always follows the longest chain, which is always perceived as the legitimate blockchain. It means, whoever has the most hashing power/computing power is likely to add blocks to a chain much faster, resulting in the longest blockchain which would end up being seen as the most legitimate. Thus, an attacker will try to add blocks to his chain at a much faster rate in a bid to make it longer to be considered as the legitimate chain. Once the corrupted blockchain attains the threshold to be considered the longest one, an attacker, in this case, would broadcast it to the network as part of the 51% attack initiation process. The rest of the network on detecting the newly corrupted blockchain will cease using the original legitimate blockchain and switch to the new one. As soon as the corrupted blockchain is considered as the truthful chain, protocol dictates that all transactions not included in it be reversed. In this case, an attacker would end up getting a refund on all his digital coins spent on the previous blockchain that is now considered illegitimate.
This is what is commonly referred to as ‘’double spending’’ attack or 51% attack.
However, Privateum Unique Ghost Network Technology uses completely different consensus algorithms, which ensures that even if hacked, attackers will not be able to control transaction data and perform fraud operations.
Sustainable management of our environment is more efficient through a mix of technologies, including blockchain itself and high-level security and monitoring systems.
Privateum architects team is constantly researching ways to improve the Blockchain ecosystem and is looking for solutions to the major current Blockchain architecture fundamental issues (e.g. constant growth of the transaction cost).
We are looking for an opportunity to improve blockchain technology to make it more effective and secure for the entire community.
Get yourself linked to the initiative of well-balanced legal privacy enhancement: