The problem with the recentralization of Bitcoin explained



Bitcoin is facing re-centralization. The cryptocurrency mining is becoming centralized and it’s due to a major design flaw in Bitcoin’s core protocol that still …

40 Comments

  1. This money is imaginary, you'll wake up one day to lose, wail, any currency that's not supported by gold or silver, it's just a worthless number.

  2. Can somebody explain how burst coin work? 3blue1brown did explain bitcoin math but not burstcoin. You mine Burst coin with Hard drives which doesn't make sense for me

  3. Even if China mines the majority of bitcoin it means nothing. They're just strengthening the system by helping strengthen the network. Double spending crypto is virtually impossible, but that's the theory and being an authoritarian gov. it threatens them to thier core. However, quantum computing will be a game changer. This will render most current cryptos useless within 1-2 years after implementation. The first crypto implemented after that jump with sufficient complexity to allow intrinsic security will become the new standard. I don't see that being bitcoin, after all, how do you update something no one owns? You can't. That's the rub. Let this be the trial run, let bitcoin be the beta. When quantum comes into play. The real game starts.

  4. looks like a pyramid scheme like everything else. anyone who is there first and has large amount of money get rich, the rest eats the crums. Save stuff not currency…

  5. Two months ago when this virus pandemic lock down started, I have been so worried on how to overcome the next global recession and also the next economic crash, and I took a big step and action finding more details on how to make money from online, and I came across ‘how to make money easily with Bitcoins” so I saw a post where a lot of reviewers commented and recommended an expert trader Mr. James Carlson , and I try him out and to my surprise i recorded a good amount of profit from investing 2 BTC and turn out to be 7 BTC in just a period of 2 weeks. Right now i have invested more coin and hoping to earn more profit at the end of this month, all thanks to Mr James, and I recommend him to everyone also, you can easily get in touch with him on Whats App ( +447723542287 ) or Tele gram (james51) for inquiries into profitable trading systems..

  6. Bitcoin mining is not profitable until you find the right way to invest, I lost almost all my btc last year, but this 2020 has been a profitable year for me, I just withdrew 2.6 btc last week working with a bitcoin professional trader, Mr Paul. It feels good to be out of a 'Novice zone contact @software_team via instagram

  7. I cannot imagine the depth of the brain it took invent the idea of blockchaining. Even rewinding this video over and over again I cannot begin to grasp its profundity.

  8. Bitcoin is not centralized, end of the story. And if you don't understand this you are behind and losing the opportunity to get a piece of the pie now while you still can make a difference in your life. Fiat currencies are useless long term and only designed to make a few people richer and a lot of people poorer wake up

  9. If the chinese communists are involved in it – what ever "it" is – I will not participate. In my opinion anyone, be it an individual or western democratic nation, who trades with communist china is committing treason.

  10. So, you're mad because electricity is cheap enough to mine bitcoin in China. And you're mad that the Chinese were smart enough to figure it out. 😆

  11. @the hated one you misunderstand mining and mining pools. china can't 51% attack bitcoin, if mining pools go bad there is incentive to switch to "well behaved" mining pools or form new ones. if the chain is attacked, full nodes also guard enforcement of rules, and as we saw in 2017 in the big blocker attack full nodes defended Bitcoin. basically bcash was the attempt of chinese miners (bitmain etc) to take over Bitcoin, and it failed. Bitcoin is the most decentralized cryptocurrency, and game theory ensures it will remain so.

    watch Andreas Antonopolous for more information.

  12. Weird that when bitcoin is represented physically is always a gold coin, and they have used the word “mining” (when we all know it’s not really mining) to resemble it to a physically mining a precious metal… like gold for example.

  13. It doesn't matter who mints bitcoin, it only matters that only a certain amount can be minted every so often, and overtime that amount decreases. That was the purpose of bitcoin, not controlling who has the most access to minting bitcoin, but how the minting itself is regulated. That is what makes it decentralized, because there is no person or persons no matter what that can mint more than the regulated amount of bitcoin without universal consensus.

    Also, 51% attacks are not 51% of mining power attacks, it is 51% of consensus acceptance. If 51% of consensus changed it would just fork off from the original bitcoin consensus. i.e Ethereum Classic.

    The biggest issue bitcoin faces, is that it has already become exactly what a bank was. It takes weeks to download a standalone bitcoin wallet because of the ever-increasing database size, currently 160+ GB. Most people hold their coins on some wallet hosting or exchange site. One sweeping regulation and all the wallet hosting sites could be shutdown making it nearly impossible or rather impractical for users to use bitcoin.

  14. This is a misunderstood subject I think. Keep in mind that although many major mining pools are located in or owned by people from China, this does not mean that all these miners are located in China. China does probably not have more than 50% of the miners. So yes, if these big pools chose to cooperate with each other and mess up the blocks, then that's a bit bad, but then people will basically stop mining for those pools. People will immediately stop mining for those pools when they figure they are fooling around. Then they cannot continue to mess up because they are way under 50% of the hashrate. In addition, the messed up blocks can simply be ignored if most of the remaining miners agree to ignore them. Please correct me if I'm wrong 🙂

  15. A general question about this 51% attack: Were Bitcoin destroyed by such an attack how would its destruction affect other cryptocurrencies such as Etherium?

  16. Flag: disinformation
    Boldface lies interspersed with naive factual info.

    No nation on Earth can 51% attack it, never mind rewrite the blockchain.

  17. This cool but I will advice not to enter into Bitcoin market without basic knowledge, Bitcoin is a zero sum coin game, it's complex expecially the way it's fluctuating now so you need maths Skills to understand the trends and different algorithm an you can only achieve this with the guidance and information of well experienced trader's who are in the market for sure updates.

  18. TLDR; Wait 6+ confirmations (Bitcoin Best Practice). 144+ confirmations if you are super paranoid.

    1) country of origin for mining pools does not really matter. A mining pool represents multiple miners.
    2) Invalid blocks would get stopped by the nodes. A malicious miner can waste hashes and submit invalid blocks but it would not be successful. Nodes is what you want most decentralized.
    3) You only have to worry about the mining pools colluding together to re-org the blockchain.
    3a) A re-org would only take transactions out of a block.
    3b) Miners cannot change "Alice pays Bob".
    4) Thus malicious miners could only double-spend their transactions.
    5) Easy mitigation, wait 6 confirmations (best practice).
    6) Re-organizing a re-org of the malicious miners' own blocks, 6 blocks back, would become exponentially more difficult and less probable of succeeding.

  19. Mining pools are gamed by their users. It's a misrepresentation to state that they can act against their customers will as most pools allow miners which aren't on location to connect to their protocol to leverage hash rate for the benefit of the group. Also, there are an immense number of ways for nodes to mitigate this risk for any user who has even a basic understanding of the protocol. Looking at the code from a foundational level, the cost to keep a double spend chain running would cost more then the defense budget of all nation states. The risk of even holding success for long enough to turn that capital into Fiat currency is so small that it's likely lower on the list then say taking over a country for it's resources. This is the point of cryptocurrency. Decentralization to the detriment of any attempt at centralization. Even if all the Chinese were against the world the ROI will never really be there compared to other options

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