Last week the Bank of Canada (BoC) released a study on “incentive compatibility” blockchain technology came to the conclusion that double spending is “unrealistic” result.
The survey was based on the PoW Protocol, based on which was modeled the behavior of an “honest and dishonest miner.” This was done in order to check whether or not the distributed registry from this type of fraud, such as double spending, in which users change the registry entries for mercenary purposes.
The study says that the main innovation of the technology of the distributed registry is the fact that the protection systems meet the users. In the case of the blockchain the system confirms a new transaction after the update is agreed upon by all users.
However, if a single miner controls more than half of all computing power, then hypothetically he will be able to organize the “attack 51%” creating a transaction double-spending. However, the study authors emphasize that in order that this situation has occurred in practice, “dishonest miner” should be “very rich” and “neutral attitude to risk.”
“These assumptions are usually unrealistic, and in practice users have not enough economic incentives to commit such an attack, especially when computing investments other miners are large enough”.
It should be noted that previously James Chapman (James Chapman), senior research Director of the Department of foundations and banking services of the Bank, the BoC questioned the effectiveness and safety of using blockchain technology to banking.
Another study conducted by a major international consulting firm Bain & Company showed that the introduction of technology distributed registry, such as blockchain, “has the potential to develop innovative banking transactions.”
comments powered by HyperComments