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Litecoin Creator Agrees with Greg Maxwell's Take on Bitcoin's Susceptibility to 51 Percent Attack

  • Alex Dovbnya
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    Litecoin creator Charlie Lee seems to be on the same page with Greg Mawell when it comes to Bitcoin's 51 percent attack being a trade-off for decentralization

Litecoin Creator Agrees with Greg Maxwell's Take on Bitcoin's Susceptibility to 51 Percent Attack
Cover image via news.u.today
Contents

In his recent tweet, which addresses a Reddit post by Bitcoin Core developer Greg Maxwell, Charlie Lee claims that one cannot fix the 51 percent flaw without making the Bitcoin network more centralized. According to the Litecoin creator, this is essential to understand for those who want to understand the O.G. cryptocurrency and the concept of decentralization. 

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A needed trade-off 

The OP who started a heated discussion asks whether it is possible to make the Bitcoin network less vulnerable by rewriting the software to cap a miner's percentage of the hash rate. In his lengthy comment, Maxwell explains why it's impossible to eliminate the possibility of a 51 percent attack without turning Bitcoin into a centralized system like Ripple, EOS, or IOTA. Using computing power to vote (instead of relying on a centralized party) makes it possible to achieve decentralization.  

A decentralized system like Bitcoin uses a public election. But you can't just have a vote of 'people' in a decentralized system because that would require a centralized party to authorize people to vote. Instead, Bitcoin uses a vote of computing power because it's possible to verify computing power without the help of any centralized third party.

As reported by U.Today, Binance CEO Changpeng Zhao suggested reorganizing the Bitcoin Blockchain after a $40 mln hack in May, but he quickly backpedaled on his plan after facing relentless criticism from the crypto community.      

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The bigger problem

Nearly 70 percent of the hash rate is controlled by China. Considering that its authoritarian government has already banned Bitcoin, this concentration of power raises many questions about the future of Bitcoin.    

However, according to Maxwell, a hypothetical attack on the Bitcoin Blockchain by a group super-powerful miners is not the biggest problem faced by the top cryptocurrency. He states that it would be far riskier if the coin's users never cared to protect its decentralization properties. 

A far bigger risk to Bitcoin is that the public using it won't understand, won't care, and won't protect the decentralization properties that make it valuable over centralized alternatives in the first place.        

Meanwhile, Bitcoin's hashrate continues to print new highs, thus making the network more robust.   

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The Blockchain trilemma

Numerous cryptocurrency projects have tried to solve the so-called "Scalability Trilemma" to no avail. IOTA has moved there a tad further by managing with the Coordicide upgrade, but it's not clear when exactly it will implement this solution and completely get rid of the centralized Coordinator.     

What's your take on the hypothetical 51 percent attack? Feel free to leave your comment!      

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
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    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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