In Light Of Binance Reorg, MIT Developer: “Bitcoin’s Software Has Been Downgraded In The Past”
MIT Developer: “Bitcoin's Software Has Been Downgraded In The Past”
Following the recent attack on Binance which saw the premier trading platform lose around $40 Million worth of digital assets, many people from within the global crypto community have been saying that it is time for BTCs dev team to “reorganize/tweak the currency’s framework” — citing the example of a similar centralized decision that took place around 6 years ago when BTC Guild’s hash rate was “leveraged to downgrade the main chain from Bitcoin 0.8 to version 0.7”.
A Closer Look At The Situation At Hand
Even though some Bitcoin proponents have been trying to push for a reorganization of the Bitcoin Core (BTC) blockchain, the conversation has largely attracted negative publicity — with most crypto enthusiasts claiming that such a move would go against all of BTCs central governance principles and thus could have disastrous financial repercussions for the altcoin industry as a whole.
For those of our readers who might not be aware of what the term ‘blockchain reorganization” means, it is essentially a process that can be initiated when a chain of recorded blocks is invalidated via the use of a hacking method (like a 51% attack) — wherein a group of miscreants are able to push miners back to a point where they once again have to start their activities from a particular block height.
In essence, if the above-mentioned technique were to be invoked today, it would theoretically allow Binance to roll-back on all of the transactions that caused the exchange lose around 7,000 BTC.
Other Details Worth Pointing Out
- As mentioned previously, back in 2013 a reorganization of the BTC chain was carried out in order to erase a substantial loss from the premier currency’s ledger.
- Dishing out his two cents on the issue, Vitalik Buterin recently stated in an interview that he disagreed with anyone who wanted to restructure BTC’s principal chain since it “opened up serious questions about the nature of the Bitcoin protocol and its commitment to ‘decentralization.’”
- Buterin then added that the only reason why the upgrade from v0.7 to v0.8 was even possible in the first place was because “over 70% of the Bitcoin network’s hash power was controlled by a small number of mining pools and ASIC miners, and so the miners could all be individually contacted and convinced to immediately downgrade.”
In closing out this piece, it should be mentioned that over the course of the past 5-6 years BTC has gained widespread investor attention, as a result of which a decision as huge as this would largely be viewed as a violation of the ethical code laid out by Satoshi Nakamoto when he first conceived of BTC.
With that being said, it now remains to be seen what the Bitcoin community decides to do from here on out.