UltraSoundMoney data on May 20 shows that 2 million Ethereum (ETH), worth approximately $3.6 billion, is ready to be stacked to bolster the security of the Ethereum network.
Enough ETH for a “51% attack” on Bitcoin
This huge reserve has inspired fantastic hypotheses, including the possibility that this Ethereum stock could be used to carry out a 51% attack on the Bitcoin network.
Hypotheses also focused on the possibility of using the reserves to buy more Bitcoin (BTC).
Since Ethereum and Bitcoin use separate blockchains and different consensus procedures, it is not possible for the two networks to interact directly, which makes an attack theoretically impossible.
However, the monetary value represented by the accumulated Ethereum can be used to purchase the required amount of Bitcoin to carry out such an assault.
Some light on the attack of 51%
To provide some background, a 51% attack is the acquisition by a person or organization of controlling more than 50% of the mining power or hash rate of a blockchain network. Out of this, the attacker can modify transactions and engage in double spending, thus undermining the credibility and reliability of the network.
Even if this type of attack is carried out against a proof-of-work blockchain, it is much more complicated to do it in practice. Having a large amount of bitcoin to gain majority control will lead to a huge rise in the price of bitcoin due to increased demand.
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This price increase will require more resources, making the attack more difficult in its current form. Additionally, the technology behind the blockchain is based on the ideals of openness, security, and trust.
Therefore, the attack of 51% of the total network resources directly contradicts these values. It would greatly negatively affect the network’s reputation and, as a consequence, its overall value.
Accordingly, despite the huge stock of ETH ready to be risked on the Beacon Chain for Proof-of-Stake Ethereum, the possibility of it being used to launch a hypothetical 51% attack on Bitcoin remains entirely speculative and highly unlikely.