Sacrilegious Binance Reorg Would ‘Erode’ Bitcoin: Blockstream
Blockstream CEO and bitcoin expert Adam Back isn’t keen on Binance chief Zhao’s ‘reorg’ suggestion. | Source: Flickr/Joi Ito
By CCN: Blockstream CEO Adam Back told the What Bitcoin Did podcast that the block reshuffling proposed by Binance CEO Changpeng Zhao would raise “geopolitical issues” had it been attempted.
Accept That Bitcoin Is Final
Back explained why the idea of a chain reorganization as a means to punish hackers or rescue lost bitcoins is a terrible idea.
“You just have to accept that Bitcoin is final because a whole bunch of factors which we can get into, but it’s basically, you know, all of the infrastructure is set up to automatically just continue consuming and finalizing transactions. And there’s a lot of inertia and equipment that’s just running away, mining transactions, so it’s very hard. The software is not designed to undo things. The infrastructure isn’t designed to undo it. And there’s all kinds of side-effects if you did. And the side-effects are both technical and economic.
“In game theory, if you can undo something, the attacker can do other things. And people who disagree with the reorg can do other things. People are very incentivized to see it not happen because they’ve seen other coins have this happen and suffer a great loss of credibility as a result. And there are also geopolitical issues that, you know, you would establish a precedent that would erode one of the major benefits of Bitcoin, being censorship-resistance, which ties back to this kind of finality of the network.”
All For One, One For All