Binance considered rolling back the Bitcoin chain in order to recover stolen funds. How would that have happened? How likely is it that such a recovery method would be executed in the future?
This question is from the May monthly subscriber session, which took place on May 25th 2019. If you want early-access to talks and a chance to participate in the monthly live Q&As with Andreas, become a patron: https://www.patreon.com/aantonop
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Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin.
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i havent used binance since the hack. do i need to do anything before i reuse my account?
In the entire life of bitcoin was any rollback ?
But couldn’t the hackers just transfer into a diverse portfolio of privacy coins in that time as well?
Why would they have to bribe them the full amount of reward? Couldn’t Binance just offer a bribe at a considerably higher reward based on the probability the miner would normally have for the reward ?? Like not every miner gets 12.5 BTC reward if they don’t win calculation !! Some insight please ??
This was suggested by a bitcoin-core developer. Binance briefly pondered the idea and then threw it out. The mistake was CZ being open about their internal thought processes (which is why people usually praise him).
indeed am thankful to welfarehackers,wordpress,com for making me $20,000
The fact that he suggested it almost as if they could just decide is very alarming!!! EVIDENCE that miners and Chinese leaders truly control BTC!!!!! Mining needs to diversify and that should be a video on how to get BTC mining to become more diversified which will be good for everyone including Chinese BTC leaders. Over 60% of the BTC miners have not even removed the Bitcoin Core Bug CVE-2018–17144 which allows for double-spending!!! that 7000 BTC gone missing from Binance is very suspect….exchanges need to be more transparent else a Mtgox repeat is inevitable and this project can't afford another shit storm
An other problem I see with rolling back. So Bob hacks 1 BTC from Binance. And so he launders it by buying 1 BTC worth of Monero from Bill.
Bill didn't do anything wrong. All he did is exchange his Monero for Bitcoin. And now you roll back and you litterally steal this BTC from Bill. And Bob who was the thief, still has his Monero.
Rolling back would get the BTC to Binance. But not necccesairy from the guy who stole it.
Great info! To add one thing: the miners would have to take into account heavily collapsing bitcoin value because the trust in immutability is lost the moment they succeeded or even nearly succeeded.
Is it not possible that CZ is behind the hack so he can justify certain centralization in Binance itself by weakening the belief in Bitcoin's decentralization? I am not accusing, just wondering why everyone seem to be rulling out this possibility?
uhm hello, is no one going to talk about how 51 – 49 = 2, not ONE percent?
Subtitle please
Andreas, please correct me if I'm wrong. In the end, what CZ proposed is alarming. It shows the centralization of hashing power in the hands of a few. Not only POW is bad for our society as it wastes energy, but it is also centralized in the hands of big miners and 3-4 pools. Yes, rollbacks are expensive, but doing a 51% attack by adding a new malicious transaction that would affect the network does not cost as much as a rollback and it is totally doable and cost under 1 million $ by renting the hash power (so no stake at hand). If 51% or 2-3 entities control the network it is just not enough decentralized. In the end, Andreas says miners would not do a 51% attack because it is too risky, it would require coordination, it would have to be done immediately and there is no way its possible. Let me correct that, 51% attacks are risky for the Bitcoin network but maybe not for the attacker, maybe the attacker as an incentive to attack it. Yes, it would require coordination and speed, just as any important hack. Andreas, please correct me if I am wrong. I'm not as familiar with Bitcoin technicals compared to EOS where we have 21 entities with equal power using multi signatures to control the chain.
CZ doesn't know these stuff and he is a CEO ?
Exchanges are digital banks ? they will soon die off and DEX’s will take over. We simply can’t continue with centralized exchanges in a decentralized ecosystem. $NEX ftw ?
Nice quality!
Love to debate this guy on BitcoinSV channel
Aa is very educated. Yet he fails to mention these cpus have backdoors in them (spectre meltdown) and all software money is vulnerable with no fdic security
Thank you Anto …..
What about all Mining Pool agreed as only Few pools are there
People Cz was on a live stream, and someone mentioned the reorg, he said he didn't know what that was, and he would consider it, but after learning what it was, he didn't even considered it. Here it seems like if he was proposing a reorg.
Not to mention, the loss of trust people would have in the network after a roll back would likely cause the price to crash, devaluing the miner's bitcoin.. Ya, not going to happen.
Does bitcoin need to keep growing in fiat value to keep the 51% attack from happening? Is there a correlation between bitcoin's security and its fiat value?
credibility is worth more than click-bait.
Yeah no way that would be possible
epic
Binance rolling back BTC would result in yet another fork of BTC, call it Binance BTC, and it would go on to do its thing while the BTC fork would go on being the real Bitcoin.
Ironically, funds are now really Safu!
What a lesson. Thanks Andreas for spreading knowledge.
thoughts about IOTA looks like having a solution to blockchain trilemma? does it still make sense for users to pay fees then? does it make sense to maintain this bitcoin mining when there is a scalable and fee-less DLT without the need for miners?
Off topic: You look great and healthy, like easily 10-20 years younger than many of your previous videos. Whatever it is you doing, keep doing it.
miners have no incentive in rolling back the chain unless the chain suffers a fatal flaw. rolling back the chain will cause massive devaluation, there is no incentive for miners to get paid in worthless coins, and if bitcoin gets rolled back so easily, it is worthless. the incentive system in bitcoin works because of that.
Would be interesting this game theory when the TX was first broadcasted.
Faith in Bitcoin restored! Thank you Andreas for the wise analysis of the situation!
Thank you Mr Antonopoulos for your amazing work educating people in the crypto space 🙂
Can I ask you which mobile phone you use please? iPhone or android / which is better for security?
Many thanks
Thanks! Poor CZ looked so exhausted when he suggested he 'considered a 51% attack'. He probably figured out quickly that what is explained in this video
This is damn good info
CZ must not understand Bitcoin to propose something like this.
Hey Andreas go to lunch with Justin Sun and Warren Buffet.
Thank you for explaining. Hope to see you on Joe Rogan again sometime.
Andre, What happened to ETC? I owned it and when it went to around $20 it suddenly tanked to $5.00 one day. Some said it was a 51% 'hack'. Was It?
Extremely interesting and well explained. Thank you!