Yesterday as the issue of the steem users funds got stolen going on, It made me to think about how much our wallets are safe now on hive or steem or even bit coin? so I tried to dig deep in to this security concept.
On the steem, the steal or seizing of the funds happened because of the hardfork allowed by the witnesses and as many claiming it got support from the Steemit.inc who holds a largest stake.
As steemit got ninja mined stake which is almost over 30-40% of whole steem produced, they easily changed the consensus protocol. If we see with bitcoin also, it can be done, block of Bitcoins from changing hands with a process similar to a 51% attack.
But it cannot work in practical and only can be estimated in theory. As the largest pools are composed by many smaller independent mining farms, and those farms would just start mining solo to prevent coercion instead of being part of such a pool. 51% of bitcoins coming together to attack on some one wallet is impossible as much as we can see how much worth 51% of bit coin now .
So at last coming to the Hive, the first and most good thing on hive is there is no ninja mined stake and as the witness from the initial stage of the block chain saying that they are advocating the decentralization and freedom. So it can be assumed to say Hive is at better place now than steem and other block chains which are governed by central authority.
I learned from that there is a lot of importance coming to hardware wallets and we need to be more cautious about exchanges.
When the stolen stolen funds are deposited on the Bittrex , they released the statement that they are in deed respect the consensus they blockchain approved irrespective of their personal opinions and will investigate about the funds of 5 million worth steem deposited on their exchange.
As much as benefits of the blockchain was there still there are some aspects we need o be aware and cautious about. Hope the owners of the funds recieve their crypto back and hope decentralization of hive here prevails forever.
proof of posh :
Well thought.
I didn't think like this.