Intelfin has 4.71 out of 5 stars 176 Reviews on ProvenExpert.com

Cryptoeconomics basics. Part 3

What are the ways in which the crypto economy enhances the security of bitcoin?

In order to ensure the security of Bitcoin, the majority rule principle has been implemented. By seizing control of most of the network's computing power, attackers could potentially take control of the blockchain. This is often referred to as a 51 percent attack. 
 
This will result in attackers preventing new transactions from being confirmed, or completely cancelling existing transactions in such a scenario. As a consequence, obtaining control over such a large amount of hash power would be extremely difficult as it would require a large amount of hardware, as well as an inordinate amount of electricity in order to do so. 
 


As a result of cryptoeconomics, Bitcoin has become one of the most successful cryptocurrencies in the world. In order to stimulate different types of incentives for different types of participants in the network, Satoshi Nakamoto implemented the assumptions. This assumption about how network participants respond to economic incentives plays a significant role in system security guarantees.

 

This site uses cookies to ensure you get the best experience on our website.

Learn more
Disable All