Supported cryptocurrencies:
BTC BTC
BCH Bitcoin Cash
NANO NANO
0.0006 BCH
EnglishCan a coordinated roll back played out in an event of a massive exchange hack? Attacker starts with one block confirmation.

Say for example a tier one exchange gets hacked for 10.000 Bitcoin. (About $200.000.000) Exchanges immediately coordinate and bribe miners with at least 51% hashrate to pick a block just before the hack and start a new chain from there. Hacker on the meantime can also bribe miners and encourage them to continue on the original chain with the hacked funds. Is there any other plan? What contingency plans could they have on such event to annul the hack?

greedyman 1 month ago
    Tags:
  • Bitcoin
  • Exchanges
question_image


Retard 1 month ago
https://news.bitcoin.com/bitcoins-software-has-been-rolled-back-before/
This should answer your question.

What I think-
Chain reorganization is a client-local phenomenon; the entire bitcoin network doesn't "reorganize" simultaneously. Which only emphasizes how important decentralization is. If one or two people controlled the majority of mining, yeah the hacker could maybe pull it off. But in reality there are over a million bitcoin miners. Said hacker would probably only be able to bribe a percentage of those miners, in order to still be in the money with his 10k bitcoin hack, and hope the rest of the miners go along with the majority, similar to what happened in 2013. (This is on the contingency that all the miners are not aware of 10k bitcoins being hacked, which, it is their job to know, so they'll probably know.) Bitmain, the worlds biggest mining company, made 2.5 billion in 2017, so I do not think they, or any other mining companies, are interested in any bribes. I would say it is impossible to do this through bribing miners because of how decentralized the mining world has become.
Retard 1 month ago
My username is retard.
hope you do not think I titled this retard.
Lol
Zai mohamed 1 month ago
Good question the same was going through my mind
Miss Mike 1 month ago
Sorry, I don't speak Turkish like my Dad did but I agree with you in both English and Turkish. No way is the entire blockchain phenomena going to go anywhere but globally sovereign. They would rather 'pull the plug'. I don't care how many politicians try to instill sides in this greedy free-for-all. It isn't happening. So let's try to play well together, children.
Gracious Interests 1 month ago Correct
There are a few problems.
Firstly, in order to perform a 51 attack the amassed hasingpower needs to be more than half of the current 131.51M TH/s (for Dec 03 2020). A generic antminer has about 9 - 15 TH/s that can be put out.
Quick calculation implies you will (at least) need 4,471 million miners to take over the network. THAT is a cost which surpasses the 200.000.000USD$ already. Not withstanding the cost of electricity and maintenance and manpower needed to pull it off.

Unlike what is thought, exchanges HAVE NO SAY in what the blockchain does. They are merely platforms with their own unique wallets that hold coins. They have no involvement in the mining process nor can they bribe miners.

The blockchain has reached this amount of strength through individuals dedicating their hashing power on individual basis (or through congregation called "mining pools"). They all work on and of their own accord. There is no central authority which dictates what happens and what should be done. This is the power of decentralization.

Furthermore is the blockchain set up in such a way that double-spending is prevented. Nodes who aim to corrupt and do as told in your fictional example will quickly be invalidated. Should the node persist and continue mining (despite the corruption) a local fork is created which no longer pertains to the original chain. The rewards gotten are no longer to be considered "Bitcoin". They are devoid of value (unless used as stand-alone or as support for a new project making use of the Bitcoin blockchain).
greedyman 1 month ago
Nice answer, Thank you.
Bennie 1 month ago
Good answer seems to be okay
Bennie 1 month ago
Good answer seems to be okay