Why Ethereum Proof-of-Stake Secures It Better Than Bitcoin

Why Ethereum’s Security Beats Bitcoin

In the world of cryptocurrencies, two of the biggest names are Bitcoin and Ethereum. Both are digital money systems running on blockchains — special kinds of computer networks that keep records safe and secure.

But they protect themselves in very different ways, and this affects how easy or hard it is to attack them.

What is Proof of Work, and how does Bitcoin use it?

Bitcoin uses something called Proof of Work (PoW). Imagine a big race where computers compete to solve tough puzzles. The first one to solve the puzzle gets rewarded, and this process keeps the network safe. However, to take control of Bitcoin’s network, someone would have to own or control more than half of all the computers racing — a massive and costly task.

Experts estimate that it might cost about 10 billion dollars to do this, which is huge but still possible.

Justin Drake, a researcher involved with Ethereum, explains:

“A 51% attack on Bitcoin costs around $10 billion, which sounds a lot, but in the crypto world, it’s not impossible.”

What is Proof of Stake, and why does Ethereum use it?

Ethereum, on the other hand, switched to a different method called Proof of Stake (PoS). Instead of solving puzzles, people prove they own a big amount of Ethereum coins. The more coins you have “staked,” or locked up as a guarantee, the more influence you have in securing the network. Because there are millions of Ethereum coins staked worth almost 90 billion dollars, trying to control more than half of these coins to attack the network would cost roughly 45 billion dollars — much harder and more expensive than Bitcoin’s attack.

Justin Drake adds:

“Ethereum’s Proof of Stake requires about $44.8 billion to control 51% of the network, making an attack much less likely.”

How does Ethereum’s “social layer” help protect the network?

But Ethereum’s security doesn’t stop there. It also has a “social layer.” This means the Ethereum community can work together to spot bad behavior and punish attackers, for example, by taking away some of their coins — something Bitcoin’s system can’t do. This social defense makes Ethereum even stronger against attacks.

Justin Drake explains:

“The social layer is a unique defense — the community can detect malicious actions and react by penalizing attackers, something Bitcoin can’t do.”

Grant Hummer, co-founder of Ethereum-focused company Etherealize, shares a concern about Bitcoin:

“Bitcoin’s security budget is declining as mining rewards decrease. If the cost to attack drops below 2 billion, a 51% attack could become inevitable.”

Matan Sitbon, CEO of Lightblocks, comments on Ethereum’s security:

“Ethereum’s security is cryptographic, but it truly relies on the support of the community.”

Pavel Yashin adds:

“If Ethereum’s network becomes centralized, the community can fork the network, isolating any compromised parts.”

Hassan Khan, CEO of Ordeez (a Bitcoin liquidity protocol), says:

“A 51% attack on Bitcoin is theoretically risky, but the huge energy needed makes it unlikely in practice.”

Why is Ethereum considered safer overall?

So, if you’re thinking about which system is safer, Ethereum’s Proof of Stake combined with its community defense creates a powerful shield that makes it much harder for hackers to take over.