Programmer Ascertains New Revelations Regarding Bitcoin SV’s Hashrate and BSV Double Spending
It would appear that the enigmatic creator of Bitcoin would not have foreseen the emergence of a token such as Bitcoin Satoshi's Vision (BSV). The crypto has featured prominently in the news of over the past week after a somewhat price growth-inflation from investors.
However, not all of the crypto community was interested in BSV's exponential rise, and some members did seek to dispel the false propagation of its capability.
In his update, Reizu, an anonymous computer security researcher and programmer, admits to discovering contrasting issues on the potential of double spending on a zero-confirmation transaction and the hashrate concentration level of the network.
What he found
The issue of double spending always raises the question with any blockchain, but for Reizu, the focus with BSV was more on its hashrate. In his discovery, he records just four nodes control over 75% of the network's hashrate, making it highly concentrated.
The BSV network bears a total of 450 nodes as per its statistics. He also begins by explaining how the double spending on a 0-conf transaction was achievable within the system. However, Reizu did mention that the condition is restricted by some real-world limitations such as the fast speed of transaction propagation on the Bitcoin network.
What does this mean?
For quite a time, the Bitcoin SV community has believed in the safety of 0-conf transactions, with no capability for one to send through the multiple nodes. However, Reizu's findings dispel these beliefs, with the researcher going further to provide a short tutorial on how it is possible.
In the video posted on Vimeo, Reizu explains doing so by using izubitcoin, a tool with features such as connecting nodes on a network and to the Bitcoin protocol natively. The exploit process on the BSV network had a resulting success rate of between 90-97% and precise control over the distribution model of the transactions. He expounded on the exploit by saying:
“Once connected to the remote nodes (after a few seconds) I send a signal to the processes. Upon receipt, each thread sends the transaction to their node and disconnects. In this way, the synchronization is very effective.”
The discovery also confirmed that mining within BSV's chain is centralized and more specifically through double spending exploitation.
When trying to send the first transaction to a set of non-mining nodes and the second to a minority of mining nodes, Reizu discovered the mined transactions always end up to the same nodes.
“34% of the hashrate is only one node. 59% of the hashrate are two nodes. 68% of the hashrate are three nodes. 75% of the hashrate is four nodes.”
Lastly, this unearthing indicates that the BSV network is an open host to double spending attacks from malicious miners within the chain. This is only possible if all the miners within BSV’s chain are honest.
Still, if the BSV network is to present itself as a revolutionary payment network of the next decade, the development team must fix the exploit before further adverse outcomes.