Author: Alex Mizrahi 2014-04-23 15:04:00
Published on: 2014-04-23T15:04:00+00:00
The author of the context states that zero-confirmation double-spending is a small issue and has possible solutions such as a trusted third party or multi-sig addresses for small-value transactions. However, implementing protocol changes may have game-theoretical implications that are hard to understand. The security property of Bitcoin relies on the majority of hashpower being honest and working to stop double spending. The author argues that Bitcoin should work even if miners are only individually rational and trying to maximize their pay-offs without colluding with others. The word "honest" can have different meanings, which may cause confusion. It can mean not trying to destroy Bitcoin or following rules that are not required by the protocol.
Updated on: 2023-06-08T20:49:37.644207+00:00