About Bitcoin ‘Reorg’ and Binance’s procedures with it

About Bitcoin ‘Reorg’ and Binance’s procedures with it

The CEO of Binance seemed to entertain the idea of fostering edition to the bitcoin blockchain disclosed by tweet. After a few while the message transformed into an escalating argument. The uncovering idea which was going to be exposed in the next Wednesday that the robbing of 7,000 BTC of Binance. There was a proposition of running a reorg on the bitcoin blockchain. The idea was come up after the hacking was held.

The transaction record might be synthesized by getting a majority of miners onboard for that case the funds are instead broken up and dispatched to them instead was suggestion by developer Jeremy Robin. It is thought that the ‘’reorganization’’ process would stifle the 7,000 BTC from staying in the hands of the hackers. But at the end it would not have built a pure rollback. The tweet turned into a hot topic further. In 10 years history there was not that much change seen in blockchain’s transaction history. The proposal would help to keep all other transactions and just distribute the hacker coins to miners and it’s not a rollback of any transaction.  There was a uproar on social media caused by the proposal. Losses of 7,250 BTC are at a minimum level.

Binance would ultimately not be pursuing ‘’reorg’’ suggested by Rubin, Zhao listed four separate reasons none of which had anything to do with the monetary cost. Zhao hinted out some points that include they may ruin credibility of BTC, they may cause split in both the bitcoin network and community, the hackers demonstrated some weak points in their design and user confusion that wasn’t obvious beforehand while it was an expensive lesson for them but its is nevertheless a lesson.

An experiment

Emin Gun Sirer (researcher in blockchain consensus protocols) said by a tweet that they will change ledger for you if they are given 51 percent bribe. For PoW blockchain a 51% attack is not a new attack vector. The majority of miners on PoW blockchains have consented to alternate a transaction history to undo critical situations. Their histories changed in the wake of critical moments seen several times. We know in 2016, $60 million worth of coins were siphoned off from now-defunct contract the DAO when this happened. It also happened in 2014. Both decisions were supported by the primary developer community indeed. The resulting ethereum fork resulted in two distinct chains which are ethereum and ethereum classic.

An echoing no

Many already started mocking at the idea in social media and some are saying it as an infeasible. A billionaire bitcoin investor said by a tweet that talk of forking or recognizing the blockchain is close to heresy. Bitcoin has presently $100bn market cap and is legal store of wealth. The latest Binance hack is nowhere near as severe as previous hacks suffered on the bitcoin blockchain.  

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