[2014-07-05 Zero hedge/bugs Recent happenings and algos

[qwerty555]

http://www.zerohedge.com/news/2014-07-05/recent-happenings-digital-coin-world

Of more concern is the pooling of this faster crypto algo power in the hands of a smaller group of high speed coin traders.  One of the vulnerabilities of a coin network is the so called "51% problem".  The coin networks operate by consensus - a transaction is valid if most of the network calculates it to be valid.  If a small group of high speed coin operators reach the 51% level they can tamper with the consensus.  This could break a coin - ruining the slower players that are holding it.

Fortunately Bitcoin seems to be actively working to prevent this.