In Bitcoin, a transaction isn't final until it's in a block that is k deep. k depends on exchanges and is 3 or more, with 6 being a typical choice. Since the initial block wasn't that deep, a "spend" didn't happen, and therefore there could not have been a double spend.
Now, the choice of k depends on a few factors. 6 isn't a magical number that's correct for all time. It depends on the amounts of hash power available to the attacker. If the attacker has access to 49% of hash power, k should tend towards infinity.
The tail of any PoW blockchain is kind of like a scratch/working area. Changes there are to be expected and perfectly normal.
It wouldn't be news if, during a session of congress, a draft law is modified before being voted on and getting published in the federal register. A change at that stage doesn't mean we have conflicting laws. Not sure how this became news.
These 6 required confirmations is the reason why Bitcoin transactions take an hour to finalize.
In the early days, before reputable exchanges and onramps, trading cash for BTC in person was a pain. Two people would meet, typically in a police station parking lot. One side would hand over the money, the other would issue the tx, and they would wait awkwardly for an hour.
Similarly, there were reports of people paying with BTC at restaurants and having to wait awkwardly afterwards for a block or two to be mined. This waiting for k confirmations is just a normal part of life with payments at Bitcoin's Layer-1.
Overall, it's disingenuous to claim that there was a doublespend when a tx never achieved the confirmations required to be finalized. CoinTelegraph goofed up here. We can criticize BTC for being slow to confirm, but not for a double-spend that was never a spend in the first place
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Back with another #FreeLoveFriday. Last time, we covered how Mastercoin/@Omni_Layer pioneered digital asset issuance on blockchains. Today, let’s discuss @chainlink and the vital role it plays in connecting blockchains to the real world.
I have said repeatedly that digital asset issuance is the killer application for blockchains. The next frontier is bringing real world assets to networks like @avalancheavax, but we often face a significant problem:
Namely, how do you get data from the real world onto blockchains and into applications running on them? More critically, how do you achieve that securely and transparently in real-time? Smart contracts are tamper-proof, but they're only as reliable as their input data.
Remember that PoW's safety depends solely on the amount of hardware that is available to launch a 51% attack. If an attacker has 51% hashpower, the number of confirmations required for safety is infinity -- the coin is not safe to use.
Changing the hash function is something that people try, but it typically doesn't work: once the coin is turned into a GPU-mined coin, the attacker has as much hardware to attack with as there are GPUs to rent.
Back with another #FreeLoveFriday. My first thread focused on what I love about Bitcoin, and features we borrowed for @avalancheavax. Today, let's focus on @Omni_Layer, or as OGs knew it, Mastercoin
Let’s wind back the clock to early 2010s. Bitcoin is just getting started. Deep techies and cryptography people are hearing whispers, reading Satoshi’s whitepaper, and many are getting hooked on the idea that money can be decentralized.
But why stop at money?
In January 2012, J.R. Willett publishes “The Second Bitcoin Whitepaper v0.5”, which laid the foundation for what has always been the absolute killer app for blockchains: digital asset issuance sites.google.com/site/2ndbtcwpa…
There’s not enough positivity spread between projects that are more commonly considered rivals, rather than peers. I’m starting a new series called “Free Love Fridays” to dive into what I like about the best projects in crypto. Naturally, #Bitcoin is up first.
Bitcoin has had an outstanding few months as it surged through all-time highs, but these new benchmarks are the culmination of years of hard work by its community constructing the narrative of BTC as a hedge against the traditional financial system.
Bitcoin has solidified its migration from peer-to-peer cash to store-of-value / digital gold, and extended this narrative well beyond crypto twitter to famed investors and institutions who are now diving in.
As anyone who’s tried to use a DeFi app on Ethereum over the last few days can tell you, we’re once again seeing the limits of the underlying network buckling under immense activity.
I love the #Ethereum community, but it’s impossible to ignore that DeFi has outgrown Ethereum 1.0 in its current state. Solutions like Layer 2s have been promised, but these efforts merely shift risk into unproven, centralized tech.
DSD, derived from ESD, follows a fairly standard design, where the amount-in-circulation of the coin is adjusted algorithmically to maintain the peg at $1. The (simplified) idea is to mint S when price is above $1 and to withdraw S below $1, to keep the value of S pegged to $1.
There are some design choices in these coins: the period at which adjustments are done, the oracles used for the price information, their granularity, the amplitude of the adjustments, and so forth. What you want is a dampening control loop.