The Rindex :: cryptocurrencies robustness and 51% attack resistance-weighted Index. Robustness & Computational Power-weighted benchmarks, as an alternative to traditional Market-Capitalization weighted modalities
In the crypto universe, it all boils down to one word Security. So many factors are important for cryptocurrency adoption and price market value from the cryptographic algorithm, system features and functionalities, which could all add or subtract value in accordance with participant perception.
However, out of all internal and external factors Security remains at the core with substantially greater value, if not the greatest. Arguably all other factors’ relative values (and subsequently the price) will diminish to approach zero if a cryptocurrency security is being jeopardized for an extended period.
That being said, measuring the system robustness and how it’s secured against vulnerabilities such as the ‘double spending attack’ and others shall be the genesis block of any valuation framework.
Currently Rindex is benchmarking robustness of PoW cryptocurrencies, (quantification of the robustness of PoS, DPoS and other consensus mechanism has completely different measurements, and will be introduced soon in coming update)
On Rindex each constituent represented by its 51% attack cost as a percentage of all index constituents 51% attack cost.
While 1st version calculated the 51% attack cost from the cost of miners aquisition, this current v2.0 version calculate the cost from hashing-power leasing cost, and that normalize it to:
51% Attack Cost = Total mining Rewards
mining rewards per any unittime, ex. 51% attack per day = mining rewards per day
The theorem says: Miners of a cryptocurrency employ their hashing power, paying overhead costs (electricity, security, payroll, maintaining etc) in order to receive R rewards of coins. Paying that R rewards to 51% of those miners, in exchange for their hashing power, is the exact cost of 51% attack.
While you may not be able to effectively negotiate with that 51% of miners of that cryptocurrency, you can rent that hashing power from the open market. Due to market efficiency hashing power being priced in the marketplace (like Nicehash) at miner rewards $, however, introducing this new hashing power would increase the cost of 51% attack from 51% of total miner reward up to 100% of miner reward. on Rindex v2.0 we calculate attack cost based on 100% of miner rewards.
check this blog post for further explanations
The first version of Rindex (which had the name Model B) on the original paper, calculate the cost of 51% attack on what know today as “classic model” which is based on the cost of miners acquisition
Total Network Hashrate / Efficient Miner Hashrate = Miner Units needed >
Miner Units needed * Miner Unit Cost + Electricity = 51% Attack cost
for further informations about v1.0 visit this blog post Rindex :: The Robustness Index
Currently, we benchmark major PoW cryptocurrencies, soon we will be adding soon all