Why Ethereum Fx is Great for Miners: Preventing 51% Attacks
Ethereum Fx is a highly profitable, expertly developed cryptocurrency forked from the Ethereum blockchain. Not only is it profitable for miners, but it is an extremely secure blockchain. The reason for this security is the ability to prevent 51% attacks. This ability to prevent a 51% attack comes from the use of PirlGuard, an innovative solution which ensures no attacks on the network occur. In this post we’ll take a look at what a 51% attack is exactly and why Ethereum Fx’s solution is great for miners and holders.
Understanding Mining on Ethereum Fx
When a holder of a coin wants to send a transaction to someone else, they sign it off with their private key and it’s ready to be sent. However, this transaction is not sent immediately. It is put into a pool of unconfirmed transactions. In order to confirm that these transactions are legitimate, miners need to validate that they are correct. On the Ethereum Fx network, these miners add blocks of transactions to the blockchain through finding a solution to a challenging mathematical problem using computational power. As Ethereum Fx is a Proof of Work system, this process is known as hashing. The more power that a miner can generate, the higher the chances they will find a solution to the mathematical problem. Once this problem has been solved, a miner can broadcast this to other miners on the Ethereum Fx blockchain. The other Ethereum Fx miners will verify it if the transactions inside the block are valid according to their record of blockchain transactions.
What is a 51% Attack?
The Ethereum Fx blockchain, just like the Ethereum blockchain, consists of a long chain of transactions made between people. Miners will always follow the longest version of the blockchain, due to the blockchain governance model. Sometimes, a malicious miner can mine with more computational power than the main, honest blockchain. The malicious miner can process their own separate version of the blockchain. This can result in a longer blockchain than the rest of the honest miners in the network. As the chain is longer, this will be recognized as the “true” blockchain, and any transactions not included in this longest chain can be reversed. If this malicious miner wants to spend their coins on something, but doesn’t include this transaction in their own privately mined chain, the transaction will be reversed once this version becomes the true blockchain. Therefore, they can spend their coins twice.
A 51% attack is named so, because a malicious miner needs 51% of the network’s hashing power to add their own version of the blockchain faster.
How Ethereum Fx Protects & Defends Against 51% Attacks
Ethereum Fx uses the innovative PirlGuard solution to prevent 51% attacks from occurring on the network. As explained, a malicious miner would need to create their own, longer chain to create their own version of the blockchain using more hashing power than malicious miners. Once they do that, the malicious miner would need to broadcast this longer chain to the network. In a normal blockchain, this longer chain would be accepted as true. However, Ethereum Fx guarantees this would not happen, as PirlGuard penalizes malicious miners by sentencing them to mine penalty blocks for creating their own version of the blockchain privately. Ethereum Fx ensures that bad miners have no incentive to mine their own version of the blockchain to double spend Ethereum Fx coins, which incentivizes miners to mine honestly instead. Ethereum Fx ensures that the risk of malicious mining is extremely low, meaning honest miners are protected on the Ethereum Fx blockchain. Ethereum Fx’s commitment to the highest security standards makes it a world-class blockchain.