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Ethereum: Is your ETH safe? New data raises some Qs for you…

2min Read

Analysts delved into security issues surrounding Ethereum.

Ethereum security

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  • Security concerns around Ethereum were explored by analysts.
  • Activity on the Ethereum network remained high, and interest in NFTs fell.

Ethereum [ETH] is known for its reliability and hasn’t faced any major issues. However, questions were raised about the network’s security recently.

Looking into the security aspect

According to the findings of crypto analyst Christine Kim, Ethereum’s security model poses certain vulnerabilities. Her analysis delves into potential exploits that attackers might employ against Ethereum’s proof-of-stake consensus protocol.

It examines scenarios such as reorganizations and finality delays, particularly concerning attackers with varying proportions of the total staked ether.

A key insight is that attackers with more significant stakes wield greater influence, as their stake translates into voting power, enabling them to sway the contents of future blocks.

As the attacker’s stake reaches certain thresholds, their power escalates, leading to outcomes like finality delays, double finality, censorship, and control over both the blockchain’s past and future.

However, attacks involving 34%, 51%, or 66% of staked ether might necessitate out-of-band social coordination for resolution. While this could pose challenges for the community, the Ethereum social layer serves as a robust defense mechanism.

Any technically successful attack could potentially be neutralized by the community’s agreement to adopt an honest fork.

This dynamic creates a race between the attacker and the Ethereum community, where swift social coordination could render the attacker’s investment futile.

Source: X

How is Ethereum doing?

Despite these security concerns, it was business as usual on the Ethereum network. AMBCrypto’s analysis of Santiment’s data revealed that the gas usage on the Ethereum network had remained consistent over the last month.

This indicated that activity on the network had remained the same. However, interest in the NFT sector declined significantly during this period.

The declining NFT trades on the network suggested that the rising activity on the Ethereum network wasn’t driven by interest in NFTs on the network.

Source: Santiment


Read Ethereum’s [ETH] Price Prediction 2024-25


Coming to ETH’s price, it was trading at $3,522.12 and its price had declined by 1.92% in the last 24 hours. Moreover, the network growth of ETH had also plummeted indicating that new addresses had started to lose interest in the token.

Additionally, the velocity at which ETH was trading at had also fallen, implying that the trading frequency of ETH had decreased.

Source: Santiment

 

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Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
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