On the 25th of June, Pentagon, a blockchain pundit aired his view on blockchains. Pentagon amplified several flaws in the technology, after stating that blockchains are not decentralized as assumed.
According to the blockchain expert, blockchains can be broken by subverting the properties of blockchain implementations. If the consensus mechanism and network of a protocol are soiled, the blockchain losses its security and essence.
Interestingly, most blockchain networks use encryptions believed to be unbreakable, thus making the network secure. Notably, though, these encryptions and other properties of a blockchain can be brought down.
Bitcoin maximalists believe that only a 51% attack can bring down the BTC network. The chances of a 51% attack happening are next to nothing. This is because the amount of throughput needed to execute that attack is unaffordable by any single entity.
Bitcoin mining requires a lot of throughput and energy consumption. It will require a group of individuals, more than 50% of miners globally to collaborate, and pull that through. Also, the mining power of BTC is widely distributed across various locations.
Breaking Bitcoin and Other Blockchains May be Easier than You Think
Pentagon though believes breaking the Bitcoin network and many other blockchain networks can be achieved more easily. Pentagon noted that the actual cost of executing a 51% attack on the network can be lowered substantially if there are network delays.
The number of entities required to disrupt the Bitcoin network is quite low. Two entities can disrupt the network, for Ethereum four entities can. For many other blockchain networks, less than twelve entities can cause a disruption.
Pentagon further stated that about 20% of Bitcoin nodes are running on the old version of the Bitcoin core client. This version is more vulnerable to attacks than upgraded versions.
Finally, the question of decentralization arose once again. According to Pentagon, for a blockchain to be completely decentralized, there must be Sybil costs. However, Bitcoin’s architecture makes it impossible to implement Sybil cost without employing a third party or making the network decentralized. Pentagon thus believes that Bitcoin, Ethereum, and a whole lot of other blockchain networks are less secure than we perceive them to be.
