Ok thanks. You seem to know the tech-details here, so I keep asking:
I heard there is some cryptocur that avoid the 51% threat, is that correct, and how do they do that?
Topic: Would faster block creation give lower security? - page 3. (Read 3136 times)
A different algorithm? Does that simply mean a lower difficulty for litecoin blocks?
No, it's actually a completely different algorithm. One that is much more dependent on memory usage in order to make it inefficient on GPUs. This didn't work though as GPUs are presently the fastest way to mine litecoins.
A different algorithm? Does that simply mean a lower difficulty for litecoin blocks?
Yes, it would be a huge security risk as eventually it would be so easy to generate a block that someone could generate multiple blocks at one time with their phone and double spend money.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
But how come litecoin transactions are much faster? Does it have lower security?
No, litecoin is basically the same as bitcoin except with a different mining algorithm and the average mining time adjusted to be 2.5 minutes instead of 10 minutes.
This is good and bad. The good part is that you don't have to wait as long for a confirmed transaction. The downside is that there will be 4 times as many blocks, so a much larger blockchain plus there is a greater risk of mining blocks at the same time so mining is more difficult.
Yes, it would be a huge security risk as eventually it would be so easy to generate a block that someone could generate multiple blocks at one time with their phone and double spend money.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
But how come litecoin transactions are much faster? Does it have lower security?
Yes, it would be a huge security risk as eventually it would be so easy to generate a block that someone could generate multiple blocks at one time with their phone and double spend money.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
Also there would be many more forks of the blockchain as multiple people would generate blocks at the same time and the network would have to figure out which is correct. This would result it lots of invalidated transactions. Business would have to wait even longer for the blockchain stabilize before accepting payment because they wouldn't be able to trust that a transaction is valid just because it's in a mined block.
Finally bitcoin would experience inflation at increasingly higher rates.
In short, it would be a disaster and completely kill bitcoin.
First, let me state how I understand the hashcash system and difficulty in block creation: The difficulty is adjusted to maintain a steady supply of block per unit time. The reward per block, i.e. new bitcoin created, is set to reduce exponentially with number of blocks, hence exponential decrease of money supply with time. For a transaction, each confirmation is actually a new block creation containg over the block that contain your transaction (?)
So then I wonder:
If difficulty was fixed, say to current level. Then with more miners and better equipment coming in as function of time, block creation would go faster. Would a faster creation of blocks represent a security issue for the chain integrity? (I do of course understand it would increase the speed of new coins created)
I ask of this for two reasons: First of all, faster block creation would giver faster confirmations. Secondly I believe that fixed difficulty and increased money supply would make a better system. The value of new money would be closely related to energy.
So then I wonder:
If difficulty was fixed, say to current level. Then with more miners and better equipment coming in as function of time, block creation would go faster. Would a faster creation of blocks represent a security issue for the chain integrity? (I do of course understand it would increase the speed of new coins created)
I ask of this for two reasons: First of all, faster block creation would giver faster confirmations. Secondly I believe that fixed difficulty and increased money supply would make a better system. The value of new money would be closely related to energy.
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