Eventually, selfishness will lead one group to rig, cheat, control, etc. the system so they can get better returns. That's exactly what happened. Here's the flaw they exploited.I don't know enough about bitcoin mathematics, but there seems to be a fair amount of buzz about this.
When a single entity ("a single miner" or "a mining pool") controls over 50% of the transaction processing it can control the entire system. This means they can "see" every transaction, spend the same coins more than once, and deny transactions they don't approve of.
That's finally happened. According to analysis from Cornell researchers, a mining pool called GHash has now reached 51% for large stretches of time (effective "ownership" is likely much less).
Monday, June 23, 2014
Does the NSA own bitcoin?