The anonymous cryptocurrency Grin (GRIN) is currently very vulnerable to a 51% attack. An unknown group of miners now control more than half of the network’s hashrate.
Grin risks 51% attack
As a reminder, the 51% attacks generally concern blockchains that use Proof-of-Work. They can occur when an entity controls more than half of the network hashrate. The latter can then reorganize the chain and the blocks to profit from them or censor transactions. This is why the occurrence of a 51% attack on Grin can be extremely problematic for the altcoin.
Grin’s second mining pool, 2Miners, issued an alert yesterday , reporting that an unknown mining pool was handling 57% of the payment network hashrate . Grinscan data also shows that the share of hashrate controlled by this unknown entity has since increased: it has risen to 58% today:
What are the risks for Grin users?
We can already note that a block was reorganized by the unknown entity, on the day of November 7. While for now the network does not appear to be otherwise affected , this can be of concern to Grin users, who now have a sword of Damocles hanging over their blockchain.
That said, an entity can have this power over an altcoin without ever doing anything with it. For the Grin network in particular, the sparkpool mining pool had already controlled more than 60% of the network hashrate , without using the possibilities it gave it.
However, the occurrence of these vulnerabilities is no coincidence: the hash rate of the GRIN has dropped drastically for more than a year, which made it more vulnerable to attacks by 51%:
Less confidence = falling GRIN price?
Another real risk is of course the erosion of confidence in the security of the Grin network. This could have direct consequences on the price of GRIN , which was already not in great shape in recent months.
It exceeded 0.60 dollars in August but has fallen steadily since to reach 0.23 dollars this morning. For the week, it loses nsaids i 16% , with a more marked fall since the announcement of the vulnerability yesterday:
Over the past twelve months, the GRIN has lost 79% of its value. Its market cap has now fallen to $ 13 million, which places it at 324th in the ranking of cryptocurrencies by market capitalization.