Author: Corey Haddad 2022-07-07 22:02:08
Published on: 2022-07-07T22:02:08+00:00
The conversation revolves around the issue of Bitcoin's security and how it is ensured. John argued that proof of work and difficulty adjustment already solve everything that is being discussed, making active economic governance by developers unnecessary. Corey disagreed with John's statement, stating that these mechanisms cannot ensure adequate security levels and do not provide proximate incentive-compatible feedback mechanisms. He explained that if the price falls, the hashrate may go down, making Bitcoin vulnerable to attack and causing a negative feedback loop. Conversely, a price rise may lead to a higher hashrate, making people think Bitcoin is more secure than before, causing a positive feedback loop. Corey further explains that PoW and the difficulty adjustments only hold block times at 10 minutes and keep coin issuance roughly on schedule. Without any force guiding the security budget towards an optimum or reasonable range, we are just lucky that Satoshi got it right. Corrections are needed to ensure that Bitcoin remains secure in the face of current and future threats.
Updated on: 2023-06-15T21:25:59.440438+00:00