- Security concerns regarding Ethereum have been investigated by analysts.
- Activity on the Ethereum network remains high, and interest in NFTs has declined.
Ethereum [ETH] is known for its reliability and has not faced any major issues. However, recently questions have arisen about network security.
If we also look at the security aspect,
According to research by crypto analyst Christine Kim, there are certain vulnerabilities in Ethereum's security model. Her analysis delves into potential exploits that attackers could use against Ethereum's proof-of-stake consensus protocol.
In particular, we investigate scenarios such as reorganization and finality delays for attackers with varying proportions of the total ether staked.
The key insight is that an attacker with a more significant stake can wield more influence as that stake translates into voting rights and can influence the content of future blocks. .
When an attacker's stake reaches a certain threshold, their power increases, leading to consequences such as delayed finality, double finality, censorship, and control over both the past and future of the blockchain.
However, attacks involving 34%, 51%, or 66% of staked Ether may require out-of-band social coordination for resolution. Although this can be a challenge for the community, Ethereum's social layer acts as a robust defense mechanism.
A technically successful attack can be neutralized by community agreement to adopt honest forks.
This dynamic creates competition between attackers and the Ethereum community, and quick social adjustments can drain an attacker's investment.
Source:X
How is Ethereum doing?
Despite these security concerns, it was business as usual on the Ethereum network. AMBCrypto’s analysis of Santiment data reveals that gas usage on the Ethereum network has remained consistent over the last month.
This indicates that activity on the network has not changed. However, during this period, interest in the NFT sector decreased significantly.
The decline in NFT transactions on the network suggests that the increase in activity on the Ethereum network is not driven by interest in NFTs on the network.
Source: Santiment
read ethereum [ETH] Price prediction for 2024-2025
As for the price of ETH, it was trading at $3,522.12, and its price decreased by 1.92% in the past 24 hours. Additionally, ETH’s network growth was also plummeting, indicating that new addresses were starting to lose interest in the token.
Additionally, ETH trading speed has also decreased, suggesting that ETH trading frequency has decreased.
Source: Santiment
