Attack of the 51% Percent
Handing 100% to the State
It is the status quo when people elect governments: the party with
the majority of votes takes office and power. Nobody even considers that all the while the central bank (FED) and government combined have 100% power over transactions and the expansion of money.
In the world of Bitcoin this majority power grab has been
recognized has a severe danger to the core functionality of the Bitcoin system.
The 51% Bitcoin Attack
When it comes to Bitcoin it is not about votes but about
computing power shares that mine the new bitcoins. If one party could take over more than 50% of all
combined CPU’s involved in Bitcoin mining then this party could practically:
- Prevent some or all transactions
- Prevent some or all other miners from mining
One addendum for Bitcoin beginners: in the words of Bitcoin experts
it is not called a party but a pool of Bitcoin miners.
Applying it to the Real World
When we think about the real world we can apply the best practices of the Bitcoin community: Never let anybody gain more than 50% of the power of controlling money expansion and currency.
People who hear the first time about anarcho-capitalism often worry
about the emergence of monopolies, and the seasoned anarcho-capitalist is usually quick
to use arguments to invalidate the worries with the argument that the government and central bank have already a 99% monopoly of power and thus it could only get better in a more free world.
Here I would concede partially to the worried newcomer: we need to take precautions to keep any party from gaining a substantial percentage control over money.
The Bitcoin Wiki comes to the following conclusion regarding the dangers of 51% Bitcoin attacks:
“Since this attack doesn't permit all that much power over the network, it is expected that no one will attempt it. A profit-seeking person will always gain more by just following the rules, and even someone trying to destroy the system will probably find other attacks more attractive. However, if this attack is successfully executed, it will be difficult or impossible to "untangle" the mess created -- any changes the attacker makes might become permanent.”
Nonetheless it has become a voluntary code of conduct for Bitcoin miners to not join a party (pool) which is close to gaining 50% of computing powers. Thus avoiding a 51% attack by potentially malicious managers of a party (pool).
It is upon us philosophers to help “untangle” the real world mess that governments and central banks have created with their 100% attack on the control of money. I did not even mention the governments 99% control of force through army and police.
------------------------------------------------------------------------------------------------------------------------------
Here I would concede partially to the worried newcomer: we need to take precautions to keep any party from gaining a substantial percentage control over money.
Bitcoin Wiki Conclusion
The Bitcoin Wiki comes to the following conclusion regarding the dangers of 51% Bitcoin attacks:
“Since this attack doesn't permit all that much power over the network, it is expected that no one will attempt it. A profit-seeking person will always gain more by just following the rules, and even someone trying to destroy the system will probably find other attacks more attractive. However, if this attack is successfully executed, it will be difficult or impossible to "untangle" the mess created -- any changes the attacker makes might become permanent.”
Nonetheless it has become a voluntary code of conduct for Bitcoin miners to not join a party (pool) which is close to gaining 50% of computing powers. Thus avoiding a 51% attack by potentially malicious managers of a party (pool).
Conclusion
------------------------------------------------------------------------------------------------------------------------------
Further Reading:
The Daily Dot
"If there’s one structural flaw that could cause Bitcoin to collapse from within, it’s the network’s vulnerability to what’s called a “51 percent attack.”…" (Jun 13th, 2014)
http://www.dailydot.com/business/bitcoin-51-percent-attack/"If there’s one structural flaw that could cause Bitcoin to collapse from within, it’s the network’s vulnerability to what’s called a “51 percent attack.”…" (Jun 13th, 2014)
Bitcoin Wiki
"An attacker that controls more than 50% of the network's computing power can, for the time that he is in control, exclude and modify the ordering of transactions…"
https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_computing_power
Blockchain.info
Source data for info-graphic (Feb 15th 2016)
https://blockchain.info/pools?timespan=4days
No comments:
Post a Comment