Hybrid approach to minimize 51% attack in Cryptocurrencies

Abstract

The implementation of Cryptocurrency came into play after the resolution of double spending problem. After a decade of its conceptual inspection there are lots of cryptocurrencies being developed and used in today's market. Even though the cryptocurrencies win the confidence of stakeholders using their decentralized and cryptographic algorithms they always had a possible downfall which is quoted as practically impossible and stated theoretically. One of the major problems is 51 % attack on the blockchain of the cryptocurrency. The solution from centralized banks printing fiat currencies and causing inflation was decentralized miners mining and getting rewarded for their work However democratic the networks reward system seem they will always be dependent on any one factor which may allow a majority resource holder in PoW based system and majority stake holder in a PoS system to manipulate the blockchains consensus once they own 51 % of the mentioned. This problem will remain practically impossible for most of the cryptocurrencies that exists because of their vast network and resources. This is practically possible problem for cryptocurrencies that are new to the market and they face a vulnerable position since their network and resource is not yet distributed enough. To avoid such an attack the currencies should start with a rewarding system that is validated based on PoW and PoS but the miner from the list is declared on a random basis. Even if a malicious attacker holds 51 % of the resource and 51% of asset and cleared PoW and PoS which practically impossible still the rewarding systems random miner mechanism should restrict the same user from manipulating the whole chain and take control over it.