Data from UltraSoundMoney on May 20 shows that two million ethereum (ETH), worth about $3.6 billion, are ready to stake to further strengthen the security of the Ethereum network.
Enough ETH to “attack 51%” of Bitcoin
This sizeable reserve has inspired fascinating hypotheses, including the possibility of using this ethereum reserve to carry out a 51% attack on the Bitcoin network.
Hypotheses have also focused on the probability that the reserve will be used to buy more bitcoin (BTC).
Because ethereum and bitcoin use separate blockchains and different consensus procedures, it is not feasible for the two networks to interact directly, making the attack theoretically impossible.
However, the monetary value represented by the accumulated ethereum can be used to purchase the required amount of bitcoin to possibly carry out such an attack.
Some light on what a 51% attack is
To provide some background, a 51% attack is the acquisition by a person or organization of control of more than 50% of the mining power or hash rate of a blockchain network. Outside of this, an attacker could modify transactions and engage in double spending, undermining the reliability and security of the network.
While this type of attack can be carried out against a proof-of-work blockchain, doing so in practice is more complex. Acquiring a significant volume of bitcoin to acquire majority control would cause a large increase in the price of bitcoin due to increased demand.
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This price increase would require even more resources, making it harder to attack in its current form. Furthermore, the technology behind blockchain is based on the ideals of openness, security, and trust.
Therefore, an assault on 51% of the total network resources goes directly against these values. It would have a significant negative impact on the network’s reputation and, as a result, its overall value.
Based on this, despite the huge pool of ETH ready to stake on Ethereum’s proof-of-stake Beacon Chain, the possibility of using it to launch a hypothetical 51% attack on Bitcoin remains entirely speculative and highly unlikely. .
