Buterin reveals why a 51% attack on ETH 2.0 would not be fatal

September 3, 2020   Ethereum

A 51% attack on Ethereum 2 would not be fatal according to Vitalik Buterin, amid concerns the yETH vault could amass enough Ether to launch an attack. Ethereum co-founder Vitalik Buterin has dismissed concerns that a 51% attack on Ethereum 2.0 would be ‘fatal’. 

The scenario emerged as a result of the burgeoning popularity of Yearn.finance’s yETH vault which has already amassed more than 137,000 ETH on its first day. Arcane Assets’ Chief Intelligence Officer Eric Wall suggested this mean the yETH vault admins will probably end up controlling enough Ether to theoretically launch an attack on Ethereum 2.0:

ITT: We come up with fun ways yETH vault strategists can take advantage of the fact that yETH is probably going to control more than enough stake to 67%-attack ETH 2.0 PoS

But Buterin downplayed the risks associated with 51% attacks targeting ETH 2.0, a  Proof-of-Stake (PoS) network, asserting that the malicious actor “could attack once”, but would be quickly slashed or soft-forked and lose control over the coins needed to maintain the attack.

Taking the opportunity to compare PoS to Proof of Work (PoW), Buterin emphasized the heightened risk that 51% attacks pose to PoW networks (like Bitcoin and Ethereum 1) since there are no staked coins to take and there is “no possible way to delete their [the attacker’s] hardware without deleting everyone else’s hardware.” He finished the post by stating:

This is an underrated key fundamental advantage of PoS over PoW”


Ethereum Classic (ETC) which uses PoW has been hit with three 51% attacks in the past month, prompting major concerns over the network’s security.

However, many in the crypto community remained skeptical over Buterin's explanation due to how difficult it would be to identify the correct fork and the fact that the attacker would continue to control the main chain. 

However Sebastian Moonjava of social finance platform Real Vision explained that the risk of a 51% attack should decrease over time due to more competition in DeFi. This would make it increasingly difficult for the yETH vault to obtain more than 51% of Ether.

Competition will be fierce. Free market will probably dampen the likelihood of this being existential. More people building. More use cases = less risk of this.

The yETH vault enables users to lock Ethereum, and the protocol then automatically switches to the highest yield or interest rate strategy. Yearn Finance, the company behind yETH is the sixth-most popular DeFi project with $876 million locked according to DeFi Pulse.

Source

Share
Pin
Send
Share
Share

Related Crypto News and Promotions




Top upcoming ICOs

ICOs Rating Days left
1 2local 5 32
2 PointPay 5 145
3 Geco.one 4.9 1
4 Pawtocol 4.9 1
5 Ledder 4.9 31
6 DogData 4.9 32
7 Tycoon 4.9 62
8 SerenitySource 4.9 62
9 Curate 4.9 92
10 IdeaFex 4.9 475

ICOs rating

Top Cryptocurrencies

Сryptocurrency CVIX Price Change, 24h
Bitcoin 78 $48 019.68 4.74%
Ethereum 68 $1 517.64 3.92%
Cardano 87 $1.35 33.38%
Binance Coin 83 $235.41 9.00%
Tether 1 $0.999700 0.02%
Polkadot 83 $34.29 17.69%
XRP 70 $0.446500 5.42%
Litecoin 72 $178.39 6.99%
Chainlink 73 $25.77 6.91%
Bitcoin Cash 72 $501.07 5.92%

Cryptocurrencies rating

Top Crypto Brokers

Broker Status
1 FIBO Group information
2 OctaFX information
3 101investing information
4 T1Markets information
5 easyMarkets information
6 Orbex information
7 XM information
8 LH Crypto information
9 USGFX information
10 LiteForex information

Brokers rating

Top Crypto Exchanges

Exchange Volume change, 24h
1 Binance 0.65%
2 Coinbase Pro 11.29%
3 Kraken 8.05%
4 Bitfinex 6.32%
5 KuCoin 14.20%
6 Venus 5.12%
7 Binance.KR 17.13%
8 EtherFlyer 41.08%
9 HBTC 3.17%
10 Dsdaq 1.84%

Exchanges rating