What Is 51% Attack In Bitcoin? Can Crypto Mining Pools Invade A Majority Attack On Bitcoin?

The concept of 51% Attack in Bitcoin, Basically it refers to attack on Blockchain when network that requires an extremely high amount of hash rate.
Published by

 

As the cryptocurrency mining is becoming less profitable for the small miners with rising electricity costs and a shrunken market due to big commercial miners pool, these pools pose a risk of a 51% attack to the cryptocurrency.

Advertisement

Understanding the concept of 51% attack

A 51 percent or majority attack is an attack on the network that requires an extremely high amount of hash rate. This kind of attack can also happen while someone is waiting for his confirmation. By acquiring the majority of the hash rate of the network, one can revise the transaction history and prevent the confirmation of new transactions as well.

Bitcoin miners basically utilize powerful computers in order to verify the transactions. Usually, there are mining pools which have groups of miners to combine their mining power and be more efficient. However, if someone gets more than 50 percent of network’s mining power, they can use it to manipulate the system as per their personal needs.

Bitcoin mining: Small independent miners & large commercial miners

In most of the American states, it costs more than $3,000 to mine a single bitcoin. For profitability, miners need to purchase powerful hardware chips but the powerful a computer is, the more electricity it would consume and the more it will cost. For a small scale crypto miner, electricity cost is a significant concern.

Earlier in the days, when the hash difficulty of the bitcoin mining increased to great levels resulting in decreasing the profitability, smaller crypto miners came together to combine their computing resources that resulted in the formation of mining pools.

It wasn’t long before these mining pools started dominating the crypto mining space. Furthermore, companies started manufacturing the customized mining hardware that helped in boosting their profits. Bitmain and ASIC miner are a few popular names that mines on a commercial scale. Reportedly, these companies made profits of about 3 to 4 billion dollars from mining.

Also, read: Cryptojacking: How Hackers Are Using Your Computer To Mine Cryptocurrencies?

Is 51% attack a possibility?

It is quite unlikely that someone gets the majority of the mining resources for a cryptocurrency and threaten their security with a 51 percent attack. When it comes to bitcoin, it operates on a proof-of-work consensus mechanism where individual transactions are verified by the miners. If the majority of mining powers gets into the hand of a single miner, that entity can pose a severe threat to bitcoin.

Once such example is Ghash.io which is one of the largest pools of bitcoin miners that has come close to obtaining the majority of bitcoin network’s hashing power twice in 2014.

If the pool had been able to obtain the 51 percent of network power, it would have been able to do the double spending, prevent any transaction for confirming and reverse past transactions among a number of other things.

Another point worth noticing is having a large number of pending transaction in mempool means miners can benefit from high mining fees.

With the threat of a 51% attack rising with big mining pools gaining more power, it has become essential for cryptocurrencies to find the solution to this problem ASAP.

How do you think the problem of majority attack can be addressed and solved?

Advertisement

Share
Stan Peterson

A USA-based blockchain enthusiast deeply involved in diverse crypto projects. With a knack for insightful reviews, I navigate the dynamic crypto landscape, offering a unique perspective on ICOs, DeFi, and NFTs. Let's connect and explore the limitless possibilities of digital transformation! Reach me out @ : stonehedge.miner@gmail.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH

Ethereum’s fundamentals continue to strengthen as major investors and analysts signal renewed confidence in the…

October 27, 2025
  • News

Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000

Bitcoin (BTC) has climbed above $113,000 as optimism grew ahead of President Donald Trump’s meeting…

October 26, 2025
  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025
  • News

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House crypto czar David Sacks has shown his support for Donald Trump's nomination of…

October 25, 2025
  • News

Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role

Crypto firm Ripple has revealed that it is exploring new ways to use XRP within…

October 25, 2025
  • News

Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms

Kyrgyzstan has made a significant move in the adoption of digital finance. It has now…

October 25, 2025