Blockchain as political battleground
In a recent Medium post on Good Audience, Max Fiege argues that PoS is the way to prevent having geo-political conflicts led on blockchain. He does not allow public comments on his piece, hence a short response here.
Original post on Good Audience: https://blog.goodaudience.com/borderless-bitcoin-a-dangerous-myth-e2582879d232
It is a good and comprehensive read, but it ignores the more generic concepts of geo-political conflicts. Instead, the article is reduced to the argument that PoS removes the power of mining which is inherently geo-centralized around areas with cheap electricity and gives the power to token holders. This is where author’s argument ends.
I would like to point the author to a recent report by Cyber Threat Alliance on illicit crypto mining (summary here). While PoW “cryptojacking” is rampant just now, which seemingly proves author’s point, in the summary of the report CTA makes educated guesses as to how illicit cryptocurrency activities could evolve in the future.
The path to abuse cryptocurrencies, as CTA asserts, lies not in the specific technology but in the fact that cryptocurrencies are not centralized, therefore they rely on the practices of every individual more than traditional currencies. At the same time, individuals are routinely sloppy about computer security and cyber hygiene, which will not change any time soon.
In short, not relying on endogenous factors like electricity is not enough. Even in PoS, if there is a (legitimate or illegitimate) way to gain decisive power over the blockchain, someone will use it. CTA reasons sufficient funds for such activity can be earned even by nation states easily when they engage in illicit crypto mining at scale. Illicit mining is becoming increasingly sophisticated and harder to detect, nation states gain motivation to leverage this particularly when under economic sanctions.
CTA asserts that nation-state actors that are currently under economic sanctions may soon begin to leverage illicit cryptocurrency mining to gain revenue.
Judging from how difficult it is to change the cybersecurity morale of every single employee of an organization, it is not unreasonable to think that illicit cryptocurrency mining or other cryptocurrency attacks could be used as a very efficient form of economic warfare.
It should also be pointed out that blockchains themselves are not perceived as immediate threat to nation states or international businesses: Competitors and powerful nation states are.
It makes therefore more sense to try to weaken the competitor and use blockchain as a tool, rather than trying to attack blockchain.
CTA warns attacks involving cryptocurrencies will become far more powerful if nations begin to issue their own blockchains, as some already have on a limited scale. Sluggish attitude of individuals to computer security would then open the door for an attacker to diminish the ability of a central government bank to control the country’s economy.
_______ Show some love — clap for us _______
🚀 TO WRAP IT UP☀️
- #CryptoTrading: TensorCharts went freemium, free version is still good for many traders though.
- #BusinessOfCrypto: We’ve improved the filter in our list of blockchain technology startups. For instance you can now filter out startups that are currently hiring.
Want to know about all verified crypto airdrops?
- Airdrop callouts on Twitter: Follow @altcointrading_ 👍
- Email alerts — sign up here and choose Updates on Airdrop page
- Past dead airdrops: Follow The Business Of Crypto 🚀
