Author: Natanael 2015-06-30 00:51:58
Published on: 2015-06-30T00:51:58+00:00
In this context, there is a concern about the centralization risk caused by large payment providers who are willing to enter legal contracts directly with large miners to ensure their transactions get mined. This may lead to a situation where small miners cannot enter into these contracts and moving their hashing power to larger pools will result in higher profits from hashing power contracts. If payment providers secure a majority of hashing power with these contracts, there will be a temptation to kick non-compliant miners off the network with a 51% attack. The person responding to this concern criticizes the idea of reactive security and unverifiable security mechanisms, suggesting instead the implementation of multisignature notaries or payment channel-based hub-and-spokes for verifiable behavior and incentives to tell the truth. They argue that trusting the P2P network is futile, as the P2P nodes are powerless to stop an actual attack and their reputations are meaningless and irrelevant in this case.
Updated on: 2023-06-10T01:41:01.314135+00:00