Security Model

Understanding Bitcoin's security assumptions and defensive strategies

Bitcoin's Security Foundation

Bitcoin's security is built on cryptographic principles and economic incentives. The network's resistance to attacks depends on the computational cost required to overcome the honest majority of miners.

51% Attack Resistance

The network remains secure as long as honest miners control more than 50% of the total hashrate, making attacks economically unfeasible.

Immutability

Once transactions are buried under several blocks, the computational cost to reverse them becomes exponentially higher.

Decentralization

A distributed network of miners prevents any single entity from controlling the network or censoring transactions.

Attack Vectors and Mitigation

Understanding potential attack vectors helps in developing effective defensive strategies:

Double Spending Attacks

An attacker attempts to spend the same Bitcoin twice by creating a longer chain that excludes their original transaction. Defense requires sufficient confirmation depth and monitoring for chain reorganizations.

Selfish Mining

Miners withhold blocks to gain an unfair advantage. This strategy becomes profitable when controlling more than 25% of hashrate, highlighting the importance of maintaining decentralization.

Censorship Attacks

Miners could potentially censor specific transactions or addresses. A diverse mining ecosystem with many independent operators reduces this risk.

Defensive Mining Strategy

Large Bitcoin holders can enhance network security through strategic mining deployment:

Security Metrics

Key metrics for evaluating network security:

Hash Rate

Total computational power securing the network. Higher hashrate means greater security but also higher attack costs.

Mining Difficulty

Adjusts every 2016 blocks to maintain 10-minute block times. Rising difficulty indicates growing network security.

Nakamoto Coefficient

Measures decentralization by counting the minimum number of entities needed to control 51% of hashrate.

Threat Modeling Framework

Effective defensive mining requires systematic threat assessment:

  1. Asset Identification: Catalog Bitcoin holdings and their security requirements
  2. Threat Analysis: Identify potential attackers and their capabilities
  3. Vulnerability Assessment: Evaluate current security gaps
  4. Risk Calculation: Quantify potential losses from successful attacks
  5. Mitigation Planning: Design defensive hashrate allocation strategy
  6. Monitoring: Continuously track network conditions and threat landscape

Ready to model your security strategy?

Back to Home View Cost Analysis