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I apologize for asking what is probably a bitcoin-noob question, but can you explain (or elaborate on) why hash power has that effect? What does a "minority ch
by gknoy 9y ago
I apologize for asking what is probably a bitcoin-noob question, but can you explain (or elaborate on) why hash power has that effect? What does a "minority chain" mean? If you have two groups using different hashing algorithms, why would that have any effect on either group?
- buttershakes 9y agoThey are using the same hashing algorithm with different consensus rules. That's exactly the issue. They are fighting over the same pie because proof-of-work is what defines Bitcoin.
- URSpider94 9y agoThe issue is that both groups derive from a single block chain at some point, so everyone who held BTC before that split can spend them on both forks, whereas those who receive them or mine them after the split only hold the currency on one fork. Additionally, if the split of hash power is highly asymmetric, then the difficulty of the majority fork will become much higher than that of the minority fork, over time. This opens the minority fork up to 51% attacks. Say the split is 90/10, then just 15% of the miners from the majority could team up and switch back to the minority fork to wreak havoc.