A researcher from Brazil has calculated that it would cost $55 Million to hack a major cryptocurrency network for around $1 Billion in profits.
Husam Abboud of FECAP University in São Paulo used Ethereum Classic (ETC) as an example, demonstrating the hackable nature of cryptocurrency networks using Proof-of-Work (PoW) algorithms.
“We can safely estimate the Cost of a 51% attack on Ethereum Classic today to be between 55 to 85 million [USD] (averaged $70 million),” Abboud said, in a report from TNW last May 22nd.
His findings contradict previous assumptions that conducting such an attack on a network would be too expensive and has the chance of making the attacked currency worthless.
“Well if you have all that hashing power you’re better off mining coins than attacking the network!” Abboud summarizes the previous argument.
Now, however, the situation has changed. The barrier of entry in terms of equipment cost removed makes it possible to achieve a considerable profit on such an attack, the researcher adds.
“The intention of this article is to raise the awareness of this attack vector so that we can take appropriate measures to increase our networks’ robustness before it gets exploited,” Abboud concludes, providing various solutions to stop such an attack including upgrading to Proof-of-Stake (PoS).