User:Erel Segal/Bitcoin economics

Bitcoin weaknesses

The 51% attack
Category:Bitcoin theft
 * 7 answers
 * 1 answer
 * movie

Detection

 * How can we detect whether a dictator has covertly taken control over the bitcoin network?
 * "I think a hypothetical 51% attack, needs some preconditions to be actually launched. I mean there will be 'signs' before the actual launching. ASIC chips production and distribution statistics, business news and evidences, will generate alarms and precautions. It is not a pure mathematical subject and should be considered as a socioeconomic threat. When alarms are triggered, players will participate in preventive protocols more willingly and a lot of a such preventing protocols will be presented. I personally do not take this attack as serious threat."

Prevention

 * : "Maybe we don't actually need a "currency" maybe all we need is a transaction. Maybe there can be a super layer on top of multiple competing crypto currencies that quickly and automatically switches your money back and forth between the best suitable mix of currencies and investment funds. After all what you really care about is how your salary is exchanged into goods and future promises. ".
 * Can we use a repeated game with a punishment strategy in order to prevent the creation of large mining pools?
 * What if we deliberately create random decenralized mining-pools, allowing each miner to join several pools in parallel?

Application

 * Using the blockchain infrastructure for other things, such as: land registries, loans, health insurance and marriage registration, by adding "colors" to coins.
 * Using bitcoins for voting, as in Nxt.
 * Making the proof-of-work itself useful, such as requiring miners to find prime numbers or to give free rides.

Alternatives

 * Proof-of-stake instead proof-of-work.