[2014-06-08] CryptoCoinsNews: 4 Lines of Defence Against a 51% Attack

[bryant.coleman]

http://www.cryptocoinsnews.com/news/4-lines-defence-51-attack/2014/06/08

Ghash has not yet responded to requests for comments. However, in a press release issued in January 2014 to alleviate fears of 51% control of the total hashrate, Ghash, whose hashrate is stated to consist of approximately 45% BitFury ASIC based miners and 55% independent miners, publicly stated in clear terms that: “GHash.IO does not have any intentions to execute a 51% attack… it could risk our investments in physical hardware and we see no benefit from having 51% stake in mining”.

[fryarminer]

The very fact that there is a pool with that much hash rate is a deterrent to people joining bitcoin. Whether the superpower pool intends to make an attack or not.
There is much talk about a 51% attack when new people learn about bitcoin, and all they need is to look at the piechart and say: "Hey, GHash.io can make that attack at any time!" That's enough of an argument to make them seriously question the feasibility of starting bitcoin.

[Ron~Popeil]

The very fact that there is a pool with that much hash rate is a deterrent to people joining bitcoin. Whether the superpower pool intends to make an attack or not.
There is much talk about a 51% attack when new people learn about bitcoin, and all they need is to look at the piechart and say: "Hey, GHash.io can make that attack at any time!" That's enough of an argument to make them seriously question the feasibility of starting bitcoin.

The fear mongering about this does far more damage than the actual remote threat that something could happen. Your average new user sees people screeching about this all over the forums long before they understand the true nature of the perceived threat.

[Kosta#]

This article is complete bullshit. I have both technical and non-technical arguments to prove that.

Point #1, technical.

How does this pie chart even come to life? I mean, how do we know that ghash.io has 47%? Because that's what they report themselves? If not, how does somebody knows - for example - that these 10 and only these 10 IP addresses are ghash.io?

Point #2, non-technical.

There are bunch of entities on this pie chart. How do we know that there is no such pair of them that is controlled by the same individual or entity? Because if there is, they already have 50+%.

[okthen]

But what would anyone have to win with a 51% attack?
People would get scared as hell, it would be bad for everyone.

[Kosta#]

But what would anyone have to win with a 51% attack?
People would get scared as hell, it would be bad for everyone.

you are equating "51% attack happened" and "everybody knows it happened". however, these are two separate events, each with it's own timeline. moreover, second event may even not happen at all if the first one is of limited scale. and if second event happens, it happens later, when all proceeds of the first event are already cached out.

[bryant.coleman]

Point #1, technical.

How does this pie chart even come to life? I mean, how do we know that ghash.io has 47%? Because that's what they report themselves? If not, how does somebody knows - for example - that these 10 and only these 10 IP addresses are ghash.io?

Not sure about that.

Point #2, non-technical.

There are bunch of entities on this pie chart. How do we know that there is no such pair of them that is controlled by the same individual or entity? Because if there is, they already have 50+%.

Right now, the unknown fraction is quite small, and it is mostly consisted of solo miners and other smaller pools.

[okthen]

But what would anyone have to win with a 51% attack?
People would get scared as hell, it would be bad for everyone.

you are equating "51% attack happened" and "everybody knows it happened". however, these are two separate events, each with it's own timeline. moreover, second event may even not happen at all if the first one is of limited scale. and if second event happens, it happens later, when all proceeds of the first event are already cached out.

Even so. I think everyone has much more to gain in the long run if all goes well with bitcoin.
The growth perspectives indicate greater further gains than the attack could generate now.

[Kosta#]

But what would anyone have to win with a 51% attack?
People would get scared as hell, it would be bad for everyone.

you are equating "51% attack happened" and "everybody knows it happened". however, these are two separate events, each with it's own timeline. moreover, second event may even not happen at all if the first one is of limited scale. and if second event happens, it happens later, when all proceeds of the first event are already cached out.

Even so. I think everyone has much more to gain in the long run if all goes well with bitcoin.
The growth perspectives indicate greater further gains than the attack could generate now.

really? you truly think so? that's so amazing that you think everyone, in every bitcoin niche, has the same to gain and the same time horizon.

in fact, miners have no intrinsic long-term motivation at all, since the equipment they own today will consume more electricity than earn bitcoins a year from now.