top | item 29254959

What Is Blockchain: Computers That Can Make Commitments

2 points| sprafa | 4 years ago |a16z.com

4 comments

order

1cvmask|4 years ago

If you control the computing you control the commitments.

The 51% attack:

https://coinmarketcap.com/alexandria/article/what-happens-in...

sprafa|4 years ago

This has demonstrated itself to be very unlikely to happen in large blockchains such as ETH because of cryptoeconomics - ie game theory 101 - if you do a 51% attack on a blockchain you're actually devaluing the entire chain.

It's like robbing a bank where if you take enough money you cause hyperinflation.

So it appears to become less common over time as the chain gains enormous amounts of value. Proof of Stake will also lead to this sort of attack being less likely, I'd think, since it's virtually impossible for a single individual to get 51% of a well-distributed token.

It's telling that the attack here listed happened in BSV, a sort of failed fork of BTC with relatively low adoption.