Author: Tier Nolan 2017-05-23 09:51:26
Published on: 2017-05-23T09:51:26+00:00
In an email exchange, Paul Sztorc discussed the potential security risks of implementing sidechains. He suggested that a majority of miners could go with the highest bidder and steal coins from the reserve, which could shake confidence in Bitcoin's future. While double spending can only get ownership of coins that were previously owned, BMM allows for taking the entire reserve. This leads to the concern that an attack is possible and only need to assume that the miners are indifferent. However, if an attacker fails after creating a fork that is 90% of the length required, it would discourage others from attacking. If an attacker succeeds, they reduce the block rate for the side chain and push up total fees per block, making their attack more expensive. There is also discussion about how a group with 25% of the money on the sidechain could try to outbid the attacker.
Updated on: 2023-06-12T01:01:12.289635+00:00