Sirwin
Sirwin

Elon Musk :- DANGERS of MINING COUNCIL

By useless_stark | Game Theory | 7 Jun 2021


Alright, so I actually wanted to write a part 2 of my previous article but since anon released a video, I'll deviate from the part 2 for now.
Okay, coming to the topic for today which is Elon Musk and Bitcoin. One of the very interesting thing that anonymous had mentioned in their video was Bitcoin Miner Council. Now, for an average person who saw the video and didn't really understand the seriousness of the issue. I am going to help you out.

So what are the repercussions of having a bitcoin miner council, well, obviously centralized money flow would take place if that happens. But how does having a mining council lead to centralization. If you don't know the reasons, this is going to be completely about that, and how your money would be highly unsafe in this scenario. Anyone who comes across the term blockchain knows that blockchain is a chain of blocks which is connected together(layman). So most of you must know what is meant by mining right by now, if you don't think of it as mining gold (layman).

Now, what exactly happens in pool mining is a lot of individuals like you and me come together to solve complex math problems to build a block/validate the payment just like workers coming together to mine gold. Now, there are many ways in which you could possibly cheat this pool mining to earn more bitcoin but I am not going in-depth on every way except for two ways which concerns the topic for today which are punitive forking and feather forking.

Punitive Forking:- Imagine you are person A who wants to send person B some amount of Bitcoin. If person B knows at least 51% of miners of bitcoin, person B could completely restrict person A's every transaction and not allow the person to even use it.
How this happens is somewhat like this. First, person B would ask every miner not to include person A's transaction thereby blacklisting, now even if the rest of the miners(i.e. the rest 49%) do include person A's transactions, these would lead to delays and inconveniences to these other miners as person B's miners would be forking every transaction made by person A forcing other miners to follow person B's mining block, thereby making person A's account null. We can at least confirm for now that having 51% of miners on a side is not feasible, but who knows.

Now coming to the second way which is quite dangerous and might apply to ELON MUSK, feather forking, you don't even need 51% of hashing power to do this, you could even do this with 10% of the hashing power and if ELON MUSK is successful in making the council active, he could easily achieve this. So what happens in this is actually very similar yet quite different to punitive forking. In punitive forking what the person is doing is blocking out every transaction made by the other, but in here the person is isn't actually blocking every block, the person is simply blocking a few blocks, now what this does is it increases the transaction fees(again layman) of the sender so high that it won't be feasible for the person. Like the transaction fees could go as high up to $15k for just $1.

This is something ELON could actually achieve, and if he does this then there is no point of even holding bitcoin, if it is centralised. On the other hand, I also do believe anon could also do this cause of their vast network of friends. I am not going to discuss here on what anon could do here, I am just showing you all the power ELON would have over bitcoin if he gets control of 10% miners of Bitcoin. Personally, I like Elon Musk for his contributions towards the growth of science and tech, but I don't know anything about his ethical side.

Invest your money wisely, security concerns are a real thing, do not neglect it. Philosophy does matter. That's it for now. Do the usual shiz, like the article if you liked it, do comment, I do appreciate feedbacks, if you learned something do buy me a cup of coffee
(PS:- A feather forking could be done by any other random person and if one has good luck.)

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useless_stark
useless_stark

Nerd. Analyst. Philosophy Helps. Blockchain Enthusiast. Lazy.


Game Theory
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