Why have DDoS attacks become a threat to cryptocurrency exchanges?

As cryptocurrencies gain popularity, they become an attractive target for cyber attacks. A DDoS attack is one of the most common methods used by attackers to disrupt the operation of online platforms and web services. After the launch of the Bitcoin Gold project, the platform immediately became the victim of a large-scale DDoS attack that disabled its website for several hours. This incident clearly demonstrates that even technologically advanced platforms are not immune to these threats.

What exactly is a DDoS attack and how does it work?

A DDoS attack (, or distributed denial of service, differs from a classic DoS attack in that instead of a single source of attack, it coordinates malicious computers from multiple locations. This distributed nature makes DDoS attacks much more effective and harder to trace. Attackers use a coordinated network of devices to overwhelm the target server with a massive number of requests, thereby putting pressure on the target's infrastructure.

While a classic DoS attack comes from a single computer and is relatively easy to identify, a DDoS attack initiated from multiple points brings new challenges. Hackers only need to control a small fraction of hashing power or computational capacity to disrupt services. This is precisely why malicious actors increasingly prefer this strategy.

Various Forms of DDoS Attacks Targeting Online Services

Attackers do not have a unified tactic. In the case of buffer overflow, they send a volume of requests to the target that exceeds the planned capacity of the system. The ICMP flood ), often known as “ping of death”( exploits misconfigured devices to spread spoofed packets across the network. The SYN flood, on the other hand, targets open ports of the web server through unverified connection requests.

These attacks can last from minutes to several days and cause huge financial losses for the targeted organizations. Companies without implemented measures to mitigate their impacts are particularly vulnerable.

Blockchain as a Natural Defense Against DDoS Attacks

Blockchain technology offers a revolutionary way of defense. The decentralized nature of blockchains creates a natural resilience against DDoS attacks and similar cyber threats. Even if some nodes stop communicating or go offline, the network continues uninterrupted in processing and verifying transactions.

Bitcoin, as the oldest and largest blockchain, has an unparalleled level of security. The number of nodes and the network's hash rate directly determine the level of protection. The Proof of Work algorithm ensures that all data is secured by cryptographic proofs. To alter already verified blocks, one would practically have to decrypt the entire history of the chain - a task virtually impossible even for the most powerful computers.

Even in a 51% attack scenario, where the attacker controls the majority of the hashing power of the Bitcoin network, the protocol would quickly respond with an automatic update. A DDoS attack in this case could temporarily disrupt several recently added blocks, but permanent damage to the blockchain network remains practically impossible.

As cryptocurrencies and decentralized networks continue to expand, understanding these security mechanisms is critical for all market participants. DDoS attacks will persist, but the technological transparency of the blockchain ecosystem remains one of its greatest advantages.