PoW² explored — A post-launch look at some of the security implications

Double spending a PoW based currency

So lets evaluate what “not easy” means here for a regular PoW based currency.

Double spending a PoW² based currency

So how have things changes since witnessing was implemented?
Well firstly our network hash rate is now more along the lines of 500 gh/s instead of the 600 gh/s we had before — this is to be expected as mining rewards were reduced by 20%…

Bribery based attacks

There exists however a potentially cheaper way to attack larger PoW coins and that is bribery. If hash power is highly concentrated between only a few large pools (as it is for many larger currencies) then simply bribing one or more large pools (or being the owner of said pools) and mining a side chain in this manner is another possible avenue of performing the same attack but with minimal expense.

The effects of price on security

The price of a PoW based currency directly impacts the security of the currency, as mining is mostly done for profit double the price effectively means double the network hashrate.

Sustainability and electricity consumption

Currencies like Bitcoin face a massive problem, in order to maintain the same level of security they have now they need their price to stay the same or constantly continue to increase over time. This is not sustainable in the long term as nothing can increase forever.
This ultimately means that the network has actually quite possibly seen its peak level of security and that over time it will become less and less secure; if not the case now then almost certainly this will be the case at some point in the future.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store