Ethereum co-founder Vitalik Buterin has downplayed any concerns about a possible 51% attack on the upcoming ETH 2.0 upgrade of the network.
Agricultural lockups create concerns
After earnings aggregator Yearn Finance launched its YETH vault earlier this week, the log attracted over 137,000 ETH on the first day. The vault pays out income to those who freeze their holdings on the platform – from the income generated from the interest of the ETH that is blocked on various platforms.
But Eric Wall, chief of intelligence at Arcane Assets, expressed concern about the unusually large amount that is being kept under lock and key. He wrote in a tweet that, due to their sheer size, the YETH vaults could theoretically control and launch an unprecedented 51% attack on the Ethereum network.
„We came up with funny ways how YETH-Tresor strategists can exploit the fact that Bitcoin Trader will probably control more than enough stakes to attack the ETH 2.0 PoS with 67%“
However, Buterin emphasizes that the risks associated with 51% attacks on the upcoming upgrade are unfounded, as the malicious actor „could attack once“ but would quickly lose control of the network through the actions of the other participants :
“In Proof Of Work, on the other hand, a successful attacker can simply attack over and over again without the possibility of deleting his hardware without deleting everyone else’s hardware. This is a major underrated fundamental advantage of PoS over PoW. “
Ethereum fork suffers third 51% attac
Only days earlier, the Ethereum fork Ethereum Classic was hit by the third 51% attack in the last few weeks alone. The security of the network has been heavily criticized since then.
Yesterday, the parent company of Ethereum Classic said it would file a lawsuit to track down the attackers and bring them to justice. However, this step is controversial – there is no regulation around blockchains – and every weak point can be exploited without legal backlash.
Meanwhile, Sebastian Moonjava, an analyst with Real Vision, believes the risk of a 51% attack should decrease over time, due to increased DeFi competition:
At the moment the DeFi market is booming like no other. Uniswap, the decentralized exchange, has started trading over a billion dollars daily as coins like SUSHI and YFII hit new highs.