Sybil Attacks: What are they and how do blockchains mitigate them?
Crypto attacks have been on the rise in recent times. According to Chainanalysis, October was the biggest month for crypto hacking activity, with more than $760 million lost during the 31-day period and over $3 billion syphoned off this year alone. One of the reasons for this spike is the ever-increasing number of methods hackers are using to infiltrate crypto platforms. However, perhaps the most feared type of exploit, known as a Sybil Attack, has been around for years and could prove disastrous for a blockchain network if successfully carried out. A Sybil Attack is an online exploit where hackers infiltrate a network by controlling multiple computers or accounts. Such attacks aim to gain majority control of a network and use it to influence transactions and other functions of the network. In the world of Web3, these attacks typically refer to a malicious entity operating multiple nodes to gain control of a blockchain network. The aim of carrying out a Sybil attack is to gain significant influence over the network to carry out illegal activities while still adhering to the fundamental rules and regulations of the system. A single computer or entity can create multiple IP address-based user accounts, which to an external observer will appear as original unique identities, although they are not.