Bitcoiner here, so bear that in mind
A 51% attack is hard. It's come close to happening once with a mining pool called GHash.io. The community quickly responded, and as of right now, the largest pool has about 17% of the network hashing power, and GHash.io has about 4%. The current state of network power distribution can be viewed at https://blockchain.info/pools , as well as other blockchain watching services. It is in any particular miners interest to be in the largest pool possible, but counter to any miners purpose to be in any pool with the possibility of making a 51% attack, since a successful 51% attack would be the end of bitcoin's market value, which makes their investment in mining equipment worthless. This has, so far, been successful.
Each wallet does not need to contain the entire blockchain. It is generally recommended that, if you are not running a full node contributing to the network, you use a thin wallet that queries the blockchain, or a trusted blockchain monitoring service, in order to asses balances and get data needed to make new transactions in a much less data-intesive manner.
Governments are not keen to give up their monopoly on the money supply, but there are limits to how much they can do to maintain it. There have been several instances historically where government control of the money supply is undermined by the economic reality of people just using other things to conduct business, regardless of the legal status of such business.
Mining is not "wasted" computing power, but rather power being put to the specific purpose of verifying and securing the integrity of the bitcoin blockchain database. It is no more a waste of resources, than the concrete, steel, and construction time of a bank vault. It's just not doing anything else, like creating an emergency shelter, or storing non-bitcoin valuables.
If you have a non-currency based idea to get people to properly secure a publicly editable, decentralized, ledger such that malicious actors cannot alter it to suit their needs, I'm more than willing to hear it. Until I see such a proposal, I don't see the addition of currency to a blockchain as a complication, but rather as a necessary function. There has to be something which incentivises people to engage in the process of securing the ledger, and that is the receipt of valuable entries on the ledger, those entries being useable as currency.
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Bitcoiner here, so bear that in mind
A 51% attack is hard. It's come close to happening once with a mining pool called GHash.io. The community quickly responded, and as of right now, the largest pool has about 17% of the network hashing power, and GHash.io has about 4%. The current state of network power distribution can be viewed at https://blockchain.info/pools , as well as other blockchain watching services. It is in any particular miners interest to be in the largest pool possible, but counter to any miners purpose to be in any pool with the possibility of making a 51% attack, since a successful 51% attack would be the end of bitcoin's market value, which makes their investment in mining equipment worthless. This has, so far, been successful.
Each wallet does not need to contain the entire blockchain. It is generally recommended that, if you are not running a full node contributing to the network, you use a thin wallet that queries the blockchain, or a trusted blockchain monitoring service, in order to asses balances and get data needed to make new transactions in a much less data-intesive manner.
Governments are not keen to give up their monopoly on the money supply, but there are limits to how much they can do to maintain it. There have been several instances historically where government control of the money supply is undermined by the economic reality of people just using other things to conduct business, regardless of the legal status of such business.
Mining is not "wasted" computing power, but rather power being put to the specific purpose of verifying and securing the integrity of the bitcoin blockchain database. It is no more a waste of resources, than the concrete, steel, and construction time of a bank vault. It's just not doing anything else, like creating an emergency shelter, or storing non-bitcoin valuables.
If you have a non-currency based idea to get people to properly secure a publicly editable, decentralized, ledger such that malicious actors cannot alter it to suit their needs, I'm more than willing to hear it. Until I see such a proposal, I don't see the addition of currency to a blockchain as a complication, but rather as a necessary function. There has to be something which incentivises people to engage in the process of securing the ledger, and that is the receipt of valuable entries on the ledger, those entries being useable as currency.
It looks like other blockchain technologies (altcoins) have been the victim of 51% attacks, so I'm going to read up on their repercussions. I wonder if they were carried out by bitcoiners who don't like competition?
It occurs to me that little can probably be done to stop attacks on distributed systems by large actors with non-monetary goals. If people are willing to throw a lot of resources into destroying a fledgling technology, they will probably succeed.
I do have an idea for a distributed public ledger in which attacks are possible but always negative-sum. I have little experience with cryptography so its probably rubbish. If it looks to not be terrible I will probably post it here for comment.