Infinite Mint Attack
An infinite mint attack is a type of attack associated with cryptocurrency networks that use the proof-of-stake (PoS) consensus algorithm. It occurs when an attacker holds a significant amount of coins in their wallet and uses them to generate additional coins without any limit, thereby devaluing the existing currency and weakening its trustworthiness. The result is inflationary pressure on the network, resulting in a decrease in purchasing power for holders of the affected coin.
The concept was first introduced by computer scientist Emin Gün Sirer in 2016 as part of his research into PoS security models. In this case, an attacker can gain control over a large portion of the total supply by creating new blocks faster than other users through continuous minting – essentially printing more money from thin air. This allows them to manipulate market prices and increase their own wealth at everyone else’s expense.
There are several ways to prevent or mitigate these attacks:
– Setting up economic incentives such as transaction fees or burning mechanisms that discourage attackers from continuously minting new coins;
– Installing safeguards such as checkpoints which limit block creation;
– Utilizing strategies such as stacking or delegation which increases security against malicious actors;
– Increasing node decentralization to reduce centralization risk and make it harder for attackers to acquire enough stake for majority control over network resources;
– Implementing protocols like Simplicity, Ethereum 2.0 Casper FFG, Ouroboros Praoswhich have been proven effective at preventing 51% attacks on blockchain networks .
