Author: symphonicbtc 2023-08-14 14:07:19+00:00
Published on: 2023-08-14T14:07:19+00:00
Two papers have been criticized for making incorrect assumptions about the security model of Bitcoin. The assumption that constructs like oracles or altchains can enable "trustless" out-of-band payments is deemed unrealistic and compromises security. This assumption also fails to acknowledge that Bitcoin's security relies on maintaining a nash equilibrium between miners. Miners are disincentivized from engaging in censorship, as they can be replaced by node-runners at any time. Additionally, miners have no interest in reorganizing the chain due to transactions being censored by an anonymous miner. Sustained censorship would indicate a compromised Bitcoin network, requiring a change in proof-of-work algorithm. LN-like protocols with sufficient CSV can prevent such attacks. The inclusion of most forms of covenant does not address these attacks, as they are based on assumptions that render them ineffective.
Updated on: 2023-08-15T01:52:23.335277+00:00