Key Points
- New research suggests that Satoshi Nakamoto might have initiated a 51% mining attack on Bitcoin’s network in 2009.
- These alleged attacks were likely stress tests and not for financial gains as Bitcoin had no value at the time.
New findings propose that Satoshi Nakamoto, the pseudonymous creator of Bitcoin, may have executed a 51% mining attack on the network during its inaugural year.
A 51% attack is a potential exploit in a cryptocurrency project by any entity or group that holds over 50% control of the network. This level of control allows the entity to modify the blockchain.
Unraveling the Connection between Patoshi and Satoshi Nakamoto
The speculation arose following a comprehensive data review of blocks mined by an individual known as “Patoshi” in 2009. Patoshi is a moniker given to a regular miner who incorporated a non-standard use of ExtraNonce within Coinbase transaction data.
The analysis indicated that hash power was possibly used to reorganize Bitcoin’s blockchain. Pete Rizzo, a Bitcoin historian, explained that Patoshi periodically took breaks from mining. During these breaks, their computer restart was so powerful that it overwrote blocks discovered by other miners.
This scenario resembles a 51% attack where an entity attempts to take over miners and gain control of new transaction confirmation. Regrettably, no other miner could perform enough hashing work to stop them from regaining control during Patoshi’s mining breaks.
There are some in the crypto community who believe that Patoshi and Satoshi Nakamoto are the same person. Both were actively mining Bitcoin in 2009, and it’s likely that only Satoshi Nakamoto owned the computer connected to the network at the time.
A detailed study by Wicked Smart Bitcoin suggests that Patoshi might have conducted a 51% mining attack in 2009, building on earlier research by Sergio Demian Lerner.
Nakamoto’s 51% Attack Was Not for Financial Gains
It’s important to note that the suspected 51% attack from 2009 was not for financial gains but likely a stress test. This is because Bitcoin had no value at the time, making the term “51% attack” a mischaracterization of the event.
Wicked Smart Bitcoin suggested that Satoshi Nakamoto may have conducted real-world stress tests, including the reorgs in May 2009 and a purposeful downward difficulty adjustment in May 2010, to check the integrity and robustness of the system.
The truth of Satoshi Nakamoto’s alleged 51% attack on Bitcoin remains unconfirmed. However, crypto analytics firm Coin Metrics has stated that a recurrence is unlikely. In February, the firm released research results, stating that 51% attacks on the Bitcoin and Ethereum blockchains are no longer viable for nation-states.
The firm cited the prohibitive costs of conducting such attacks. It estimated that a 51% attack on Bitcoin would require a whopping 7 million ASIC mining rigs, totaling an estimated cost of around $20 billion.
