Blockchain Advantages
and Disadvantages
Beginner
Published Dec 12, 2018Updated Feb 9, 2023
5m
TL;DR
Most blockchains are designed as a decentralized database
that functions as a distributed digital ledger. These blockchain
ledgers record and store data in blocks, which are organized
in a chronological sequence and are linked through
cryptographic proofs. The creation of blockchain technology
brought up many advantages in a variety of industries,
providing increased security in trustless environments.
However, its decentralized nature also brings some
disadvantages. For instance, when compared to traditional
centralized databases, blockchains present limited efficiency
and require increased storage capacity.
Advantages
Distributed
Since blockchain data is often stored in thousands of devices
on a distributed network of nodes, the system and the data are
highly resistant to technical failures and malicious attacks.
Each network node is able to replicate and store a copy of the
database and, because of this, there is no single point of
failure: a single node going offline does not affect the
availability or security of the network.
In contrast, many conventional databases rely on a single or a
few servers and are more vulnerable to technical failures and
cyber-attacks.
Stability
Confirmed blocks are very unlikely to be reversed, meaning
that once data has been registered into the blockchain, it is
extremely difficult to remove or change it. This makes
blockchain a great technology for storing financial records or
any other data where an audit trail is required because every
change is tracked and permanently recorded on a distributed
and public ledger.
For example, a business could use blockchain technology to
prevent fraudulent behavior from its employees. In this
scenario, the blockchain could provide a secure and stable
record of all financial transactions that take place within the
company. This would make it much harder for an employee to
hide suspicious transactions.
Trustless system
In most traditional payment systems, transactions are not only
dependent on the two parties involved, but also on an
intermediary - such as a bank, credit card company, or
payment provider. When using blockchain technology, this is
no longer necessary because the distributed network of nodes
verify the transactions through a process known as mining.
For this reason, Blockchain is often referred to as a 'trustless'
system.
Therefore, a blockchain system negates the risk of trusting a
single organization and also reduces the overall costs and
transaction fees by cutting out intermediaries and third parties.
Disadvantages
51% Attacks
The Proof of Work consensus algorithm that protects the
Bitcoin blockchain has proven to be very efficient over the
years. However, there are a few potential attacks that can be
performed against blockchain networks and 51% attacks are
among the most discussed. Such an attack may happen if one
entity manages to control more than 50% of the network
hashing power, which would eventually allow them to disrupt
the network by intentionally excluding or modifying the
ordering of transactions.
Despite being theoretically possible, there was never a
successful 51% attack on the Bitcoin blockchain. As the
network grows larger the security increases and it is quite
unlikely that miners will invest large amounts of money and
resources to attack Bitcoin as they are better rewarded for
acting honestly. Other than that, a successful 51% attack
would only be able to modify the most recent transactions for
a short period of time because blocks are linked through
cryptographic proofs (changing older blocks would require
intangible levels of computing power). Also, the Bitcoin
blockchain is very resilient and would quickly adapt as a
response to an attack.
Data modification
Another downside of blockchain systems is that once data has
been added to the blockchain it is very difficult to modify it.
While stability is one of blockchain’s advantages, it is not
always good. Changing blockchain data or code is usually
very demanding and often requires a hard fork, where one
chain is abandoned, and a new one is taken up.
Private keys
Blockchain uses public-key (or asymmetric) cryptography to
give users ownership over their cryptocurrency units (or any
other blockchain data). Each blockchain address has a
corresponding private key. While the address can be shared,
the private key should be kept secret. Users need their private
key to access their funds, meaning that they act as their own
bank. If a user loses their private key, the money is effectively
lost, and there is nothing they can do about it.
Inefficient
Blockchains, especially those using Proof of Work, are highly
inefficient. Since mining is highly competitive and there is just
one winner every ten minutes, the work of every other miner is
wasted. As miners are continually trying to increase their
computational power, so they have a greater chance of finding
a valid block hash, the resources used by the Bitcoin network
has increased significantly in the last few years, and it
currently consumes more energy than many countries, such
as Denmark, Ireland, and Nigeria.
Storage
Blockchain ledgers can grow very large over time. The Bitcoin
blockchain currently requires around 200 GB of storage. The
current growth in blockchain size appears to be outstripping
the growth in hard drives and the network risks losing nodes if
the ledger becomes too large for individuals to download and
store.
Closing Thoughts
Despite the downsides, blockchain technology presents some
unique advantages, and it is definitely here to stay. We still
have a long road to mainstream adoption, but many industries
are getting to grips with the advantages and disadvantages of
blockchain systems. The next few years will likely see
businesses and governments experimenting with new
applications to find out where blockchain technology adds the
most value.
Further Reading:
What’s a Blockchain Bridge?
What Is the Blockchain Trilemma?
Blockchain Layer 1 vs. Layer 2 Scaling Solutions
Blockchain Use Cases:
Remittance
Beginner
Published Aug 11, 2019Updated Dec 11, 2023
5m
Community Submission - Author: Igor Davidov.
Introduction
In short, remittance can be defined as the transfer of money to
a distant location, usually between individuals that live in
different countries. In most cases, it consists of an immigrant
worker sending money to their home country. Today,
remittances represent the largest flow of funds into the
developing world, surpassing foreign direct investments and
official development assistance. According to the World Bank
Group, the remittance industry experienced significant growth
in the past years, up 8.8% in 2017 and 9.6% in 2018.
Some developing economies are heavily dependent on cash
that comes from abroad, making remittances a substantial
component of their economy. As such, migrant workers’
transfers are now one of the main sources of income for many
countries. For example, Haiti received international
remittances that accounted for roughly 29% of its GDP in
2017. The percentage raised to 30.7% in 2018.
The problem
The World Bank estimates that the current cost for sending a
$200 remittance is around 7% (global average). Considering
that worldwide remittances made up to $689 billion in 2018,
7% would count for roughly $48 billion paid in operational
costs.
In addition to the high fees, most remittance solutions rely on
third-party services and financial institutions. The need for
multiple intermediaries makes the current system highly
inefficient. Not only because the services are expensive but
also because transfers may take days or even weeks.
In this context, blockchain technology may provide viable and
more efficient alternatives to the remittance industry. This
article introduces some of the possibilities and existing
solutions, along with a few examples of companies working in
the space.
Is blockchain the solution?
The main goal of blockchain remittance companies is to
simplify the entire process, removing unnecessary
intermediaries. The idea is to provide frictionless and nearly
instant payment solutions. Unlike traditional services, a
blockchain network doesn’t rely on a slow process of
approving transactions, which usually goes through several
mediators and requires a lot of manual work.
Instead, a blockchain system can perform worldwide financial
transactions based on a distributed network of computers.
This means that several computers participate in the process
of verifying and validating transactions - and this can be done
in a decentralized and secure way. When compared to the
traditional banking system, blockchain technology can provide
faster and more reliable payment solutions at a much lower
cost.
In other words, blockchain technology may solve some of the
major problems faced by the remittance industry, such as high
fees and long transaction times. The operational costs can
drop substantially simply by reducing the number of
intermediaries.
Use cases
Mobile Application
Many companies are now experimenting with blockchain
technology to deliver new payment solutions. Some
mobile crypto wallets allow users to send and receive digital
assets worldwide and to quick exchange between crypto and
fiat currencies.
Coins.ph is one example of a mobile wallet app that provides
multiple features. Users are able to do international
remittances, pay bills, buy game credits, or simply trade
Bitcoin and other cryptocurrencies. Also, some financial
services don’t require a bank account.
Digital platforms
Some companies are operating an infrastructure that interacts
directly with the traditional financial system. For instance,
BitPesa is an online platform that deploys blockchain
technology in Africa. Founded in 2013, they are providing
payment solutions and currency exchange at lower rates and
increased speed.
The Stellar protocol is another example of a blockchain
platform serving the remittance industry. Stellar was founded
in 2014 with the alleged goal of promoting financial access,
connecting people and financial institutions worldwide.
The Stellar network counts with a distributed ledger that has
its own currency, named Stellar lumens (XLM). Their native
token can be used as a bridge currency, facilitating global
trades between fiat and cryptocurrency assets. Similar to
BitPesa, users and financial institutions can use the Stellar
platform to send and receive money with reduced transaction
costs.
ATMs
Along with mobile applications and online platforms, the use of
ATMs may provide an interesting solution for sending and
receiving money worldwide. Such an approach may be
especially useful in underdeveloped areas that still lack a good
Internet connection or banking system.
Companies like Bit2Me and MoneyFi are developing new
remittance systems that combine blockchain technology with
ATMs. Their goal is to issue prepaid cards that support
multiple functionalities.
The combined use of blockchain ledgers with ATMs has the
potential to greatly reduce the need for intermediaries. Users
won’t need a bank account, and ATM companies will likely
charge a small fee in the process.
Current challenges and limitations
While it’s clear that blockchain technology can bring many
advantages to the remittance industry, there is still a long way
to go. The following are some of the potential barriers and
major limitations, along with possible solutions.
Crypto-fiat conversion. The worldwide economy is still based
on fiat currencies, and converting between crypto and fiat is
not always an easy task. In many cases, a bank account is
required. Peer to peer (P2P) transactions can remove the
need for a bank, but users will likely need to convert from
crypto to fiat in order to use the money.
Mobile and Internet dependence. Millions of people living in
underdeveloped countries still lack access to the Internet,
and many don’t have a smartphone. As mentioned,
blockchain-compatible ATMs may be part of the solution.
Regulation. Cryptocurrency regulation is still in its very early
stages. It is either unclear or inexistent in several countries,
especially the ones that rely on foreign cash inflow. But
further adoption of blockchain technology will certainly push
regulation forward.
Complexity. Using cryptocurrencies and blockchain
technology requires certain technical knowledge. Most users
still rely on third-party service providers because running
and using blockchain autonomously is not an easy task.
Also, many crypto wallets and exchanges still lack
educational guides and intuitive interfaces.
Volatility. Cryptocurrency markets are still immature and
subject to high volatility. As such, they are not always
suitable for everyday use, as their market value may change
very quickly. Other than that, highly-volatile currencies are
not ideal for people that just want to transfer money from
one place to another. This problem is less concerning,
though, and stablecoins may offer a viable solution.
Closing thoughts
The remittance industry experienced significant growth in the
past decade and will probably continue to expand in the
following years. The increased immigration rate of people in
search of work or educational opportunities is likely one of the
main causes. According to the World Migration Report 2018,
there were an estimated 244 million international migrants in
2015 - about 57% more than the 155 million estimated in
2000.
However, the remittance space is still troubled by
inefficiencies and limitations. As a consequence, more
companies are harnessing blockchain technology to provide
more efficient alternatives, and we will likely see greater
adoption by immigrant workers in the near future.
Blockchain Use Cases:
Digital Identity
Beginner
Published Jul 7, 2019Updated Dec 11, 2023
5m
TL;DR
Among the many emerging use cases of blockchain
technology, digital identity management and verification is
perhaps one of the most promising. In 2018 alone, billions of
people were affected by personal data breaches, all around
the world. There is an undeniable need for more secure
methods of storing, transferring, and verifying sensitive
information. In this context, blockchain systems may bring
valuable solutions to some of the difficulties faced by most
centralized databases.
How can blockchain apply to digital
identity systems?
In essence, when a file is recorded on a blockchain system,
the authenticity of its information is ensured by the
many nodes that maintain the network. In other terms, a
“batch of claims,” from multiple users, supports the validity of
all recorded data.
In such a scenario, the nodes of the network can be controlled
by authorized agencies or governmental institutions,
responsible for verifying and validating the digital records.
Basically, each node can “cast a vote” regarding the
authenticity of the data so that the files can be used just like
an official document, but with increased levels of security.
The role of cryptography
It’s crucial to understand that a blockchain-based identity
system doesn’t require the direct or explicit sharing of
sensitive information. Instead, digital data can be shared and
authenticated through the use of cryptographic techniques,
such as hashing functions, digital signatures, and zero-
knowledge proofs.
Through the use of hashing algorithms, any document can be
converted into a hash, which is a long string of letters and
numbers. In this case, the hash represents all the information
used to create it, acting as a digital fingerprint. On top of that,
governmental institutions or other trusted entities can provide
digital signatures to give the document an official validity.
For instance, a citizen could provide their document to an
authorized agency so they can generate a unique hash (digital
fingerprint). The agency can then create a digital signature
that confirms the validity of that hash, meaning that it can be
used as an official document.
Other than that, zero-knowledge proofs make it possible for
credentials or identities to be shared and authenticated
without revealing any information about them. This means that
even if data is encrypted, its authenticity can still be verified. In
other words, you could use ZK proofs to prove you are old
enough to drive or enter a club without revealing the exact
date of your birth.
Self-sovereign identity
The concept of self-sovereign identity refers to a model where
each individual user has full control over their data, which
could be stored in personal wallets (similar to crypto wallets).
In this context, one could decide when and how their
information is shared. For instance, someone could store their
credit card credentials in a personal wallet and then use their
private key to sign a transaction that sends that information
out. This would allow them to prove they are the true owners
of that credit card.
While blockchain technology is mostly used to store and
exchange cryptocurrencies, it can also be used to share and
validate personal documents and signatures. For example, a
person might have a government agency sign off on their
status as an accredited investor, then transfer confirmation of
that fact to a brokerage via a ZK proof protocol. As a
consequence, the brokerage could be sure the investor was
properly accredited, even though they have no detailed
information about their net worth or income.
Potential advantages
The implementation of cryptography and blockchain in digital
identity may provide at least two major benefits. The first is
that users can have better control over how and when their
personal information is used. This would greatly reduce the
dangers associated with storing sensitive data in centralized
databases. Also, blockchain networks can provide higher
levels of privacy through the use of cryptographic systems. As
mentioned, zero-knowledge proof protocols allow users to
prove the validity of their documents without the need to share
details about them.
The second advantage is the fact that blockchain-based digital
ID systems can be more reliable than the traditional ones. For
instance, the use of digital signatures could make it relatively
easy to verify the source of a claim made about a user. Other
than that, blockchain systems would make it harder for a
person to falsify a piece of information, and could effectively
protect all sorts of data against frauds.
Potential limitations
As with many use cases of blockchain, there are some
challenges involved in using the technology for digital
identification systems. Arguably the most difficult problem is
the fact that these systems would still be vulnerable to a type
of malicious activity known as synthetic identity theft.
Synthetic identity involves combining valid information from
different individuals to create an entirely new identity. Since
each piece of information used to create a synthetic identity is
accurate, some systems may be tricked into recognizing the
fake ones as authentic. This kind of attack is widely used by
criminals in credit card frauds.
However, the problem can be mitigated through the use of
digital signatures so that made-up combinations of documents
won’t be accepted as records on a blockchain. For instance, a
governmental institution could provide individual digital
signatures for each document but also a common digital
signature for all documents registered by the same individual.
Another point of attention is the possibility of 51 percent
attacks, which is more likely in small blockchain networks. A
51 percent attack has the potential to reorganize a blockchain,
essentially changing its records. This problem is particularly
concerning in public blockchains, where anyone can join the
process of verifying and validating blocks. Fortunately, private
blockchains can reduce the likelihood of such attacks as they
would only include trusted entities as validators. However, this
would represent a more centralized and less democratic
model.
Closing thoughts
Despite the drawbacks and limitations, blockchain technology
has great potential to change the way digital data is verified,
stored, and shared. While many companies and startups are
already exploring the possibilities, there is a lot to be done.
Still, we’ll certainly see more services focused on digital ID
management in the coming years. And most likely, blockchain
will be a central part of it.
Blockchain Use Cases:
Charity
Beginner
Published Feb 14, 2019Updated Aug 7, 2023
5m
Blockchain for charities: an introduction to
crypto-philanthropy
Charitable organizations often encounter barriers to success
due to a lack of transparency, accountability issues, and limits
to the ways they can accept donations. Crypto-philanthropy
(or the use of blockchain technology to facilitate charitable
contributions) offers an alternative solution, with decentralized
and direct transactions that may help these organizations
receive donations and raise funds more efficiently.
Blockchain basics
The creation of blockchain systems brought up many benefits
in a variety of industries, as they allow for increased
transparency and data security. Although the concept existed
long before the creation of Bitcoin, it was only recently that
blockchain’s potential started to be acknowledged on a
broader scale.
Blockchain is a fundamental component of nearly all
cryptocurrency economic networks. It was formerly devised
by Satoshi Nakamoto as the digital ledger behind Bitcoin, but
the technology has since been applied to a variety of other
scenarios and has proven to be quite useful not only for digital
currencies but for many other types of digital communication
and data sharing.
The Bitcoin blockchain operates as a distributed ledger
technology (DLT), which is protected by cryptography and
maintained by a huge network of computers (nodes). Such a
framework allows for peer-to-peer (P2P) borderless
transactions within a trustless environment. Trustless means
there is no need for users to trust each other because all
participating nodes are required to follow a predefined set of
rules (outlined by the Bitcoin protocol).
The Bitcoin ledger used for these transactions does not reside
on any single data center or server. Instead, the blockchain is
distributed and replicated across a myriad of computer nodes,
spread around the world. This means that every time a
transaction is confirmed or data is changed, each participant
has to update its own version of the blockchain, in accordance
with those events (they have to reach consensus in regards to
every change).
As mentioned, blockchain is often used as a distributed
ledger, and the advantages provided by this unique
technology are serving several philanthropy organizations and
charity foundations. The Binance Blockchain Charity
Foundation (BCF) is one notable example.
Cryptocurrency donations
There is still a long way to go until cryptocurrencies get
globally adopted, and this route is particularly long when it
comes to charity. Currently, there is a small but growing
number of charitable organizations that have already
embraced cryptocurrency as a donation method.
Donors that intend to use cryptocurrency to make their
contributions may have to either confine their efforts to the few
organizations that support them or donate large enough
amounts as an attempt to persuade their favorite charities into
accepting crypto payments.
Before a charity starts receiving cryptocurrency donations, it
needs to have a process in place for managing and
distributing the funds in a transparent and efficient way.
Understanding the basics of cryptocurrencies and blockchain
technology - and how the donations can be converted into fiat
currency - is crucial for an effective implementation strategy.
Potential benefits of crypto-philanthropy
Crypto-philanthropy promises some notable advantages for
charitable organizations and donors, which include:
Total transparency: each cryptocurrency transaction is
unique, which means that it is also easily tracked through
the blockchain. The higher level of transparency and public
accountability can ease donors' minds and encourage them
to give while also reinforcing the charity's reputation for
integrity.
Global and decentralized: most blockchain networks present
high levels of decentralization, meaning that they do not
need to rely on a centralized government or other
institutions. Thus, funds can move directly from donors to
charities, and the decentralized nature of blockchain makes
it uniquely suitable for international transactions.
Digital agreements: blockchain makes it easier to share and
store digital data, and may also be used to ensure that
important documents or contracts cannot be modified
without the approval of all involved members.
Reduced expenses: blockchain technology has the potential
to simplify the way charities are managed, automating parts
of the process and reducing the overall costs by requiring
fewer intermediaries.
Reduced taxes: considering a US-based donor as an
example, if a contribution is made with Bitcoin, the charity
will get the full donated value (no capital gain taxes).
Moreover, the donor would be able to claim a higher tax
deduction towards governmental agencies.
Concerns and limitations
Despite the potential advantages, there are some potential
concerns to be considered when adopting crypto-philanthropy:
Volatility: besides stablecoins, most cryptocurrencies are
being traded on highly volatile markets, and often suffer
large swings in value.
Security: if the private keys that give access to donated
funds are lost, there is no way to recover them. Likewise, if
the keys are not managed and secured properly, a malicious
entity may end up accessing the wallets and stealing the
funds.
Public awareness and understanding: most people find
blockchain quite difficult to explain, and many potential
donors don’t understand the basics of cryptocurrencies well
enough to trust the system or make use of it for charitable
donations.
Real-world cases
Crypto-philanthropy has been taken up by some high-profile
charitable organizations in recent years. In 2017, for example,
the global philanthropic organization Fidelity Charitable
received the equivalent of $69 million in cryptocurrency
donations. The same year, an anonymous donor known as
Pine distributed around $55 million in Bitcoin donations to
various organizations worldwide via the Pineapple Fund.
As previously presented, the Blockchain Charity
Foundation (BCF) is another notable example of crypto-
philanthropy. The BCF is a not-for-profit organization aiming to
transform philanthropy through the use of a decentralized
charity platform.
Closing thoughts
Crypto-philanthropy remains a relatively new means of giving,
accepting, and distributing donations. But as the blockchain
technology grows more widespread and familiar, charities and
donors alike may come to embrace it as one more attractive
way to help those in need. It seems only sensible to assume
that as the public continues to adopt this form of giving,
charitable organizations will ramp up their cryptocurrency
operations.
What Is a 51% Attack?
Intermediate
Published Nov 27, 2018Updated Apr 20, 2023
5m
Introduction
Before diving into the 51% attack, it is crucial to have a good
understanding of mining and blockchain-based systems.
One of the key strengths of Bitcoin and its underlying
blockchain technology is the distributed nature of building and
verifying data. The decentralized work of the nodes ensures
that the protocol rules are being followed and that all network
participants agree on the current state of the blockchain. This
means that the majority of nodes need to regularly reach
consensus in regards to the process of mining, to the version
of the software being used, to the validity of transactions, and
so forth.
The Bitcoin consensus algorithm (Proof of Work) is what
assures that miners are only able to validate a new block of
transactions if the network nodes collectively agree that the
block hash provided by the miner is accurate (i.e. the block
hash proves that the miner did enough work and found a valid
solution for that block’s problem).
The blockchain infrastructure - as a decentralized ledger and
distributed system - prevents any centralized entity from
making use of the network for its own purposes, which is the
reason why there is no single authority on the Bitcoin network.
Since the process of mining (in PoW-based systems) involves
the investment of huge amounts of electricity and
computational resources, a miner’s performance is based on
the amount of computational power he has, and this is usually
referred to as hash power or hash rate. There are many
mining nodes in various locations and they compete to be the
next to find a valid block hash and be rewarded with newly
generated bitcoins.
In such a context, the mining power is distributed over
different nodes across the world, which means the hash rate is
not in the hands of a single entity. At least it is not supposed to
be.
But what happens when the hash rate is no longer distributed
well enough? What happens if, for example, one single entity
or organization is able to obtain more than 50% of the hashing
power? One possible consequence of that is what we call a
51% attack, also known as a majority attack.
What Is a 51% Attack?
A 51% attack is a potential attack on a blockchain network,
where a single entity or organization is able to control the
majority of the hash rate, potentially causing network
disruption. In such a scenario, the attacker would have
enough mining power to intentionally exclude or modify the
ordering of transactions. They could also reverse transactions
they made while being in control - leading to a double-
spending problem.
A successful majority attack would also allow the attacker to
prevent some or all transactions from being confirmed
(transaction denial of service) or to prevent some or all other
miners from mining, resulting in what is known as a mining
monopoly.
On the other hand, a majority attack would not allow the
attacker to reverse transactions from other users nor to
prevent transactions from being created and broadcasted to
the network. Changing the block’s reward, creating coins out
of thin air, or stealing coins that never belonged to the attacker
are also deemed impossible events.
How Likely Is a 51% Attack?
Since a blockchain is maintained by a distributed network of
nodes, all participants cooperate in the process of reaching
consensus. This is one of the reasons they tend to be highly
secure. The bigger the network, the stronger the protection
against attacks and data corruption.
When it comes to Proof of Work blockchains, the more hash
rate a miner has, the higher the chances of finding a valid
solution for the next block. This is true because mining
involves a myriad of hashing attempts and more
computational power means more trials per second. Several
early miners joined the Bitcoin network to contribute to its
growth and security. With the rising price of Bitcoin as a
currency, numerous new miners entered the system aiming to
compete for the block rewards (currently set as 6.25 BTC per
block). Such a competitive scenario is one of the reasons why
Bitcoin is secure. Miners have no incentive to invest large
amounts of resources if it is not for acting honestly and striving
to receive the block reward.
Therefore, a 51% attack on Bitcoin is rather unlikely due to the
magnitude of the network. Once a blockchain grows large
enough, the likelihood of a single person or group obtaining
enough computing power to overwhelm all the other
participants rapidly drops to very low levels.
Moreover, changing the previously confirmed blocks gets
more and more difficult as the chain grows, because the
blocks are all linked through cryptographic proofs. For the
same reason, the more confirmations a block have, the higher
the costs for altering or reverting transactions therein. Hence,
a successful attack would probably only be able to modify the
transactions of a few recent blocks, for a short period of time.
Going further, let’s imagine a scenario where a malicious
entity is not motivated by profit and decides to attack the
Bitcoin network only to destroy it, no matter the costs. Even if
the attacker manages to disrupt the network, the Bitcoin
software and protocol would be quickly modified and adapted
as a response to that attack. This would require the other
network nodes to reach consensus and agree on these
changes, but that would probably happen very quickly during
an emergency situation. Bitcoin is very resilient to attacks and
is considered the most secure and reliable cryptocurrency in
existence.
Although it is quite difficult for an attacker to obtain more
computational power than the rest of the Bitcoin network, that
is not so challenging to achieve on smaller cryptocurrencies.
When compared to Bitcoin, altcoins have a relatively low
amount of hashing power securing their blockchain. Low
enough to make it possible for 51% attacks to actually
happen. A few notable examples of cryptocurrencies that were
victims of majority attacks include Monacoin, Bitcoin Gold and
ZenCash.
https://academy.binance.com/en/articles/what-is-a-51-percent-attack
