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What is a 51% Attack?

A 51% attack arises within the field of blockchain technology and, at its core, involves an entity or individual gaining control of over half of a networks hashrate the total mining power utilized to confirm transactions on the network.

When this control is achieved, the integrity of the blockchain can be undermined and manipulated, leading to invalidated transactions and potential double-spending of coins.

Every blockchain maintains a sequence of blocks that record transactions (the distributed ledger).

These blocks are cryptographically linked, and the process of adding them involves solving complex puzzles, especially in Proof-of-Work (PoW) systems.

However, should an entity secure more than 50% of a networks hashrate, they gain the power to modify the transaction history, potentially double-spending coins.

In Proof-of-Stake (PoS) systems, a similar risk arises when an attacker controls over 50% of staked tokens.

Within the annals of blockchain history, several coins have fallen prey to this devastating strategy, underscoring the need for robust security mechanisms and constant vigilance in the ever-evolving world of cryptocurrency.

Some of the most notable 51% attacks over the years includes:

Other victims include Feathercoin (FTC), Vertcoin (VTC), and Verge (XVG).

The common factor? Lower hashrates relative to their algorithm family, making them vulnerable targets.

The very essence of blockchain technology rests on its promise of security and immutability, however, as with every technological innovation, vulnerabilities exist.

One of the most discussed threats to a blockchains integrity is the 51% attack.

Fortunately, with evolving technology and proactive strategies, there are measures that can be taken to fortify a network against such attacks.

In essence, the prevention of a 51% attack is crucial to maintaining the trust and validity of a blockchain network.

With the right blend of technology, community vigilance, and proactive measures, blockchain ecosystems can ensure their resilience against such threats, thereby safeguarding the interests of their users and the sanctity of their data.

While Satoshi Nakamoto might not have envisioned the feasibility of a 51% attack in Bitcoins early days, the vast economy of altcoins today has shifted the paradigm.

The intricacies of blockchain, and the economic incentives intertwined with it, mean that networks must remain vigilant against exploits and attacks from bad actors.

The decentralized ethos of cryptocurrencies necessitates robust checks, balances, and ongoing evolution to ensure they remain resilient against such vulnerabilities.

One thing is certain; as the cryptocurrency market matures and evolves, so too must its defences against potential threats.

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What Is a 51% Attack in Crypto? Definition and History - Techopedia

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You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Our society is constructed on the foundations of various centralized entities, including governments, corporations, and a wide variety of religious and community groups. Top-down command and control, as an organizing principle, have enabled us to make tremendous gains as a society globally. It has helped us to build a great civilization.

Unfortunately, our great civilization does not serve 99% of us as well as it can. But fortunately, our societal development has brought us to the point technologically where we're enabled to build a society -a more decentralized society- that serves nearly everyone well.

In 2008, Satoshi Nakamoto built something profound that has the power to transform life on our planet. A mechanism that enables us to build far better alternatives to the legacy systems. Alternative structures for economic, social, and political systems that could exist on a foundation that could not be improperly manipulated. It is a new kind of global ledger, the blockchain, and through this invention a revolutionary new higher-powered form of trust has emerged: decentralized trust.

Over the years, the internet has undergone a remarkable evolution, shaping the lives of individuals and society as a whole. It all began with the pre-web protocols, the internet protocols developed in the '80s. Building upon those foundations, Web 1.0 emerged, offering static text and images interconnected through hyperlinks.

Then came Web 2.0, where we find ourselves today, introducing interactivity, e-commerce, mobile connectivity, and social media. While Web 1.0 represented an extraordinary breakthrough, the advent of Web 2.0 was the one that truly transformed society on a global scale. Yet, in many ways, the business model of Web 2.0 so far has been a hangover from the dominant business model of the 20th century: manufacture products for sale, and advertise to create (often artificial) demand.

Related: Boomtown On The Blockchain: Where Old-School Finances Meet The Wild West Of Web3

Web3, or the decentralized web, is what we are merging into. It serves as a key component of a new paradigm shift that humanity is currently undergoing, moving from the age of silos to the age of collaboration, where opportunities are more widely distributed and accessible. Web3-based systems are forging new ways of interacting, innovative business models, and entirely new industries.

The Web3 paradigm shift starkly contrasts the business models of the last millennia, where corporations operated in adversarial relationships with their customers, extracting as much as possible in exchange for as little as possible. In the face of these exploitative practices, we have observed over the years how the power that currently resides within centralized corporations is becoming distributed through the diverse creativity of the growing Web3 ecosystem via progressive decentralization.

Web3 empowers communities with economic, social, and political agency while enabling individuals to exercise self-sovereignty. In Web3, we are not just passive consumers (or worse, products monetized by social media companies); we are active builders. Regardless of the specific activities individuals are engaged in, whether it's creating non-fungible tokens (NFTs), building collections of them, developing decentralized applications (dApps), participating in decentralized autonomous organizations (DAOs), shaping policies, or designing protocols, we all contribute as builders to the next generation of the web.

Builders are not only developers, researchers, and entrepreneurs, but also artists, writers, musicians, educators, and more. Each brings a unique perspective to form the collective essence and, ultimately, wisdom, at the core of this paradigm shift to the more decentralized future. By harnessing the transformative power of Web3, we can collectively build the world we want to live in, firmly rooted in this new trust foundation. The builder spark is alive in each and every one of us. It is existential: I build, therefore I am.

To dive deeper into the future of Web3 and the decentralized web, read our full report on Opportunities in Web3 by clicking here.

This article was originally published on Lucidity Insights, a partner of Entrepreneur Middle East in developing special reports on the Middle East and Africa's tech and entrepreneurial ecosystems.

Related: From Ethereum to Consensys: Joseph Lubin's Visionary Journey

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With Web3, We Can Build The World We Want To Live In - Entrepreneur

Kurt Wuckert Jr. appeared on the Morgan Report to discuss Ordinals and Bitcoins role in revitalizing the non-fungible token (NFT) market. Of course, he covered more ground than that in this latest interview.

NFTs on BTCthanks, Casey Rodarmor!

Morgan begins by noting that Wuckert was the most requested guest to return to the podcast by viewers. He says he intentionally held off on having him back as he wanted to make the podcast as valuable as possible and was waiting for the right moment.

Wuckert dives right in, saying that the NFT craze is the big thing that made Ethereum blow upsome of them were selling for millions of dollars. He points out that, on Ethereum, users cant store theirNFTswhich have to sit on separate servers due to the technical limitations of that blockchain.

After the frenzy, people presumed the NFT market had gone away, and in many ways, it did, Wuckert says. However, theres a lot of potential utility to NFTs that this immature market hasnt yet explored.

More recently, BTC developerCasey Rodarmor came up with Ordinals inspections on the BTC blockchain. He realized he could inscribe artwork directly on satoshis, storing it on the blockchain and making it immutable.

Now your artwork is as immutable as the blockchain itself, he says, noting that this has caused a huge stir, and many are asking fundamental questions about tokens, NFTs, and whats possible on Bitcoin again.This is causing tensionbetween those whosee BTC as digital goldand those who are interested in what else it can do.

A brief look at the wider digital currency industry

Morgan then asks Wuckert for his thoughts on the recent BTC price move upwards and the value of XRP. He is interested in both and wants to hear Wuckerts opinion.

Handling the BTC price move first, Wuckert believes its a suckers rally. He cant see where the money is coming from to kick off a bull market when interest rates are so high, BRICS nations are attacking the dollar, and were on the precipice of a major global conflict. In short, the macro conditions arent favorable to a new bull market right now, and the maximalists calling for it have a track record of being wrong.

What about XRP? Wuckert notes that Ripple (the company) preceded Bitcoin and was even mentioned by Satoshi Nakamoto in the early days. However, while he thinks Ripple has some interesting technology, he doesnt see the need for XRP, which has done little other than enrich Ripple executives,hence the lawsuit with the SEC. He says that Bitcoin should try to compete with Ripple in the areas they are interested in, such as remittances, settlements, and small payments.

Having said this, Wuckert notes that BTC is incapable of competing with Ripple in the aforementioned areas. Hes a miner onBitcoin SV, which has much faster payments with lower fees. If any blockchain can compete, its BSV, and Wuckert is betting with his reputation and his money that it will.

Are the regulators taking crypto-friendly banks down?

Morgan notes the recent failure of banks like Signature, Silvergate and Silicon Valley Bank and wonders if theres a conspiracy to get crypto out of the way.

Wuckert asks a return question, who are the banks? He notes that there are factions, and banks like JP Morgan (NASDAQ: JPM) can hardly be classified as the same as the others. He notes that the same factions exist within the regulator camps, with different agencies stating different opinions. For example, theCommodity Futures Trading Commission (CFTC) has said Ethereum is a commodity, whereas the SEC is leaning towards classifying it as a security.

Wuckert also points out that, as the traveling circus of crypto goes from town to town, robbing people blind, it makes it more difficult for libertarians such as himself to make a case for a light-touch or relatively hands-off approach to the industry. Likewise, as the years roll by, the chance forBitcoin to disrupt paymentsand create change is slipping away; whereas it was compelling in 2008, its now facing competition from a multitude of apps like Venmo.

Speaking briefly oncentral bank digital currencies(CBDCs), Wuckert says they have only entered the conversation because Bitcoin has failed to disrupt payments meaningfully. For him, CBDCs are the worst of both worlds.

On the pointlessness and absurdity of maximalism

Morgan states his opinion that maximalism of any kind is pointless. He wants to know Wuckerts thoughts on it.

Wuckert says hes a Bitcoin maximalist, but not in the typical way. In fact, many typical BTC maximalists would consider him a Judas and a traitor. He views Bitcoin as a valuable attestation tool and source of truth.

However, he agrees that BTC maximalism is absurd. The vision some of them promote is dystopian and cant exist unless the world collapses, and thats not to anyones benefit.

In summary, Wuckert says weve wasted a lot of time, but theres still time to pull off theBitcoin revolution. Hes deeply invested and hopes it works out, but he says its important to hedge and remember you might be wrong. In closing, he encourages everyone to invest in themselves and their skills because that way, youre never really out of the game.

Watch: On the very start of Bitcoin

New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

Link:

Bitcoin and NFTs collide: Kurt Wuckert Jr. talks to the Morgan Report - CoinGeek

In today's fast-paced and ever-changing world, achieving financial freedom is a dream that many aspire to. With the rise of digital currencies, such as Bitcoin, a new investment strategy has emerged: holding Bitcoin for the long term. This article will explore why holding Bitcoin can be the key to financial freedom and how it can revolutionize your approach to wealth-building.

Understanding Bitcoin

Bitcoin, often referred to as a digital or cryptocurrency, is a decentralized form of currency that operates on a peer-to-peer network. In 2009, it was created by an unknown individual or group using the pseudonym Satoshi Nakamoto. Based on blockchain technology, it aims to ensure transparency, security and immutability of transactions.

Over the years, Bitcoin has gained widespread adoption and has shown significant growth in value. As of this article, Bitcoin has reached an all-time high in terms of its market capitalization, surpassing traditional financial institutions and gaining recognition from major companies and investors.

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Concept of holding Bitcoin

Once you buy Bitcoin with a credit card, there are various approaches, including short-term trading, day trading or long-term holding. While short-term trading can be lucrative for some, it requires constant monitoring, technical analysis and a high tolerance for risk. On the other hand, holding Bitcoin for the long term can offer a more passive and strategic approach to building wealth.

Holding Bitcoin involves purchasing Bitcoin with the intention of keeping it for an extended period, typically years, rather than frequently buying and selling based on short-term market fluctuations. This strategy is based on the belief that Bitcoin has the potential for long-term appreciation in value, driven by its scarcity, utility and growing acceptance worldwide.

Why holding Bitcoin can offer potential benefits for long-term investment and wealth-building strategies

One of the main reasons why holding Bitcoin can be the key to financial freedom is its unique characteristics as a store of value. Unlike traditional fiat currencies, such as the U.S. dollar or the Euro, which can be subject to inflation and depreciation, Bitcoin's limited supply may offer protection against inflation and depreciation of fiat currencies. With a limited supply of 21 million Bitcoins, its scarcity and mathematical scarcity make it an attractive option for hedging against inflation and preserving wealth.

While short-term trading can be lucrative for some, it requires constant monitoring, technical analysis and a high tolerance for risk. On the other hand, holding Bitcoin for the long term can offer a more passive and strategic approach to building wealth. Bitcoin may offer potential benefits as part of a diversified investment portfolio, but investors should also consider the potential risks and uncertainties associated with this emerging asset class. These risks may include market volatility, regulatory uncertainty and potential security breaches, among others.

In addition, holding Bitcoin can offer diversification benefits to an investment portfolio. Traditional investment assets, such as stocks, bonds or real estate, are subject to market fluctuations and risks that can affect the overall performance of a portfolio. By adding Bitcoin to a diversified investment portfolio, investors can reduce the risk of over-reliance on traditional assets and potentially enhance their overall returns.

Overcoming common misconceptions about Bitcoin

Despite its growing popularity, Bitcoin still faces misconceptions and skepticism from some individuals. Concerns about its volatility, risks and legitimacy are often cited as reasons to avoid holding Bitcoin. However, it's important to note that Bitcoin has come a long way since its early days and has gained significant mainstream acceptance.

While it's true that Bitcoin can experience short-term price volatility, especially in an emerging and relatively unregulated market, its long-term trajectory has been positive. Many experts argue that the risks associated with Bitcoin can be mitigated through careful planning, education and risk management strategies. At the same time, it is important for investors to acknowledge that Bitcoin has faced criticism and concerns from some investors and regulators. It is crucial for investors to educate themselves about the potential risks and uncertainties of investing in this asset class. Some concerns may include its volatile price movements, the potential for fraud or market manipulation and the lack of a clear regulatory framework in some jurisdictions.

Conclusion

Holding Bitcoin can be the key to financial freedom, offering the potential for wealth accumulation, diversification and a hedge against inflation. Despite misconceptions and risks associated with Bitcoin, its growing acceptance, increasing institutional adoption and historical price appreciation make it a compelling investment option for those looking to achieve financial freedom. By educating yourself, developing a strategic plan, practicing risk management and taking a long-term investment approach, you can unlock the potential of holding Bitcoin and embark on a path toward financial freedom.

This content is for informational purposes only and should not be construed as financial advice.

Lee Enterprises newsroom and editorial were not involved in the creation of this content.

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Exploring the benefits of holding Bitcoin for long-term investment - The Daily Progress

According to Michael Saylor, the co-founder and Executive Chairman of MicroStrategy, the company is not only aware of Ordinals but also intrigued by the protocols potential to spark software innovation. Saylor emphasized that the protocol, which has generated significant excitement within the Bitcoin community, has caught MicroStrategys attention as a possible catalyst for groundbreaking advancements in software development.

During an exclusive interview at Bitcoin 2023 in Miami, Michael Saylor revealed that MicroStrategy is actively examining Ordinals and evaluating its potential impact on application development. Saylor emphasized the companys focus on assessing how Ordinals could be leveraged to drive advancements in the field of software development.

Ordinals, which debuted in January, have gained popularity as a means to create Bitcoin-based assets similar to NFTs. Although the community has not fully embraced the protocol, it has sparked a fresh wave of experimentation with the original cryptocurrency, encouraging new possibilities and avenues for exploration.

A recent advancement in the field involves the utilization of Ordinals to develop a pioneering framework for constructing tokens on the Bitcoin network. This innovative approach was first introduced by an anonymous on-chain data enthusiast named Domo in early March. Since then, numerous other tokens known as BRC-20 tokens have emerged, with thousands being created in a short span of time.

The surge in transactions, partly attributed to the utilization of Ordinals, has contributed to increased transaction fees on the network. This development has proven advantageous for Bitcoin miners, as they earn transaction fees for securing the network. However, many community members have expressed concerns that these high fees hinder the use of Bitcoin as a peer-to-peer electronic cash system, as originally intended by Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

According to Saylor, the dialogue surrounding Ordinals holds significance because the long-term success of Bitcoin miners is crucial. Furthermore, he highlighted that the development of applications leveraging capabilities has the potential to enhance the overall adoption of the cryptocurrency by individuals, businesses, and even governments.

Although Michael Saylor did not explicitly mention the specific use cases that MicroStrategy is exploring with Ordinals, he acknowledged that the ability to store data on Bitcoins blockchain beyond traditional transactions holds immense potential for various applications. Saylor highlighted the concept of burning data on the blockchain, which opens up possibilities such as storing digital signatures, registrations, or even hashed documents.

This indicates that MicroStrategy is considering diverse applications that leverage the capability of Ordinals to incorporate and authenticate different types of data on the Bitcoin blockchain.

When discussing corporate security, Michael Saylor referred to DocuSign, a platform that enables secure agreement signing using electronic signatures for businesses and individuals. However, Saylor pointed out that such mega corporations currently rely on a proprietary database for their operations.

Saylor highlighted the disparity in security levels between enterprises and Bitcoin, stating that the existing security measures in enterprises are comparatively weaker. He suggested that innovative applications utilizing the worlds largest cryptocurrency could potentially introduce an unprecedented level of security, providing companies with enhanced protection that is currently unavailable to them. This implies that Bitcoin-based solutions have the potential to revolutionize corporate security and offer novel security measures not presently in existence.

Saylors recent statements follow his previous characterization of Ordinals as a catalyst for Bitcoin adoption during an episode of the PBD Podcast just a week ago. However, he also recognizes that Ordinals have been utilized for various frivolous purposes.

During the Miami event, Saylor emphasized the importance of allowing criticism for things that are considered silly, but without resorting to censorship. He suggested that while certain applications of Ordinals may not be widely appreciated, it is crucial to maintain an open dialogue and refrain from stifling innovation in the cryptocurrency space.

Saylor refrained from making predictions about the eventual triumph of any particular protocol. However, he strongly expressed his opposition to modifying Bitcoin in a way that would enable censorship of specific uses. This sentiment was in response to the actions of a group of core Bitcoin developers, led by Luke Dashjr, who considered Ordinals as spam and sought to filter them out of transactions.

According to Saylor, altering the Bitcoin protocol to restrict certain individuals from utilizing the cryptocurrency goes against the fundamental values of the community. He firmly believes in the concept of having rules without the need for rulers, emphasizing the importance of maintaining the decentralized and inclusive nature of Bitcoin.

Originally posted here:

Michael Saylor Highlights Bitcoin Ordinals' Role In MicroStrategy's App Development Vision - TronWeekly