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> Ripple sets the threshold high (80 percent) to provide adequate protection from double spending. But by doing so, it gives a submajority the ability to block
by grandalf 11y ago
> Ripple sets the threshold high (80 percent) to provide adequate protection from double spending. But by doing so, it gives a submajority the ability to block transactions that they perceive to be repugnant.
So in the context of an exchange, a small minority could, say, stop short selling or halt the market in a high volatility environment. All this ads liquidity risk which in turn reduces the value of the infrastructure.
- performa 11y ago"All this ads liquidity risk which in turn reduces the value of the infrastructure." Completely agree, and here's what's especially interesting about that comment: in the "traditional" (non-Bitcoin/ripple/etc) finance world, it takes an even SMALLER minority to block transactions. From the perspective of "how many people do you need to piss off before you cease to have liquidity", the worst system on the planet is ye old bank.
- im3w1l 11y agoIn the traditional world, there is a specific minority you can't piss off. But with Ripples, you can't piss of any sufficiently large minority. This is a big difference.