The Network Attack That Could Ruin Bitcoin

A 'selfish mining' group in Cornell broke the system

   

The Network Attack That Could Ruin Bitcoin

Bitcoins can be used to make a lot of money in an honest way but it appears that some have found a way to beat the system and cash out at the expense of others.

BBC reports that some Bitcoin mining groups could be attacking the system by withholding information. Bitcoins are computer-generated coins that people cash out on by solving complicated cryptographic puzzles in a process called ‘mining’ because it resembles the idea of mining through piles of junk before finding some gold. Whenever a coin is found, the news is made public to everyone involved and mining groups start working on the next puzzle.

However, there are selfish mining groups that does not inform the rest of the groups when the puzzle has been solved. There is a group in Cornell that managed to control the entire pool by doing so because they had an advantage when it came to solving the next puzzle.

As rewarding and honest as Bitcoins can be, some have found ways to exploit this highly valuable currency.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/network-attack-ruin-bitcoin/.

©2014 InvestorPlace Media, LLC

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