The CEO of Blockstream, Adam Back, talked about Bitcoin (BTC) and the recent hack experienced by Binance, one of the most popular exchanges around the world. He specifically mentioned that the block reshuffling to recover the funds could completely harm the Bitcoin network.
Binance Bitcoin Reorg Could Be Harmful To The Network
Last week, when the Binance cryptocurrency exchange lost 7,000 Bitcoin due to a hacker attack, Changpeng Zhao, the CEO of Binance, explained that they were analysing the possibility to reorganize the Bitcoin network to recover the funds lost.
The whole cryptocurrency community discussed this issue and whether it would be possible to reorganize the network. Nonetheless, they agreed not to perform this action. Adam Back is against this possibility claiming that it is a terrible idea.
About it, he commented:
“In game theory, if you can undo something, the attacker can do other things. And people who disagree with the reorg can do other things. People are very incentivized to see it not happen because they’ve seen other coins have this happen and suffer a great loss of credibility as a result.”
He went on saying during the What Bitcoin Did Podcast that there are geopolitical issues that would establish a precedent and would erode several benefits of Bitcoin.
Clearly, if the network would experience a reorganization arranged among parties in the space, users would not be safe anymore knowing that there could be another reorganization in the future. Additionally, people would question how decentralized the network truly is and it would settle a precedent for other parties to act in the same way in the future.