Author: Ruben Somsen 2019-09-09 06:53:28
Published on: 2019-09-09T06:53:28+00:00
A discussion between Ruben and ZmnSCPxj on the security of using SPVs, or Simplified Payment Verification, in Bitcoin transactions has highlighted that valid Proof of Work (PoW) is required to fool nodes in both full node and SPV situations. However, in the event of a Sybil attack, the difference between the two is that full nodes will stall and think the blockchain has no more miners, while an SPV will follow the false blockchain. Automated payment processing systems that use full nodes will refuse to acknowledge any incoming payments during a Sybil attack, which alerts them of the potential attack. A timeout system could be implemented to warn higher-layer management systems if the full node cannot see a new block for a given amount of time. In contrast, automated payment processing systems that use SPVs with PoW fraud proofs may not notice a Sybil attack, leading to double-spending and a loss of money for the victim.
Updated on: 2023-06-13T21:17:12.342426+00:00