Egalitarian Society or Benevolent Dictatorship : The State of Cryptocurrency Governance – Semantic Scholar

In this paper we initiate a quantitative study of the decentralization of the governance structures of Bitcoin and Ethereum. In particular, we scraped the open-source repositories associated with their respective codebases and improvement proposals to find the number of people contributing to the code itself and to the overall discussion. We then present different metrics to quantify decentralization, both in each of the cryptocurrencies and, for comparison, in two popular open-source programming languages: Clojure and Rust. We find that for both cryptocurrencies and programming languages, there is usually a handful of people that accounts for most of the discussion. We also look into the effect of forks in Bitcoin and Ethereum, and find that there is little intersection between the communities of the original currencies and those of the forks

Source: Egalitarian Society or Benevolent Dictatorship : The State of Cryptocurrency Governance – Semantic Scholar

Bitmain Nears 51% of Bitcoin’s Network Hashrate

Bitcoin’s mining hardware (hashrate) has tripled since December, as can be seen above, even while price has fallen by 3x since December.It is now therefore a lot more expensive to mine a bitcoin than in December, while at the same time one mined bitcoin is worth a lot less.At some point miners are unable to afford energy costs or to keep up with adding more and more hardware as their old one becomes useless due to the constant increase of hashrate difficulty. So they close shop.Some miners, however, like Bitman, have lower costs, presumably because they manufacture themselves the mining hardware.So as other miners struggle, like Bitfury which has now dropped to 2%, Bitmain starts gaining more and more hashrate to the point they are now nearing 51%.The above bitcoin hashrate chart, however, even in a common sense way, looks quite unusual because it rarely goes down, if ever.Rather than responding to the price action, the hashrate appears completely detached. A situation that can not go for much longer because that increased new hardware itself puts pressure on price as the new barely profitable miners need to sell everything to cover costs.

Source: Bitmain Nears 51% of Bitcoin’s Network Hashrate

The State of Cryptocurrency Mining – Sia Blog

A few months ago, it was publicly exposed that ASICs had been developed in secret to mine Monero. My sources say that they had been mining on these secret ASICs since early 2017, and got almost a full year of secret mining in before discovery. The ROI on those secret ASICs was massive, and gave the group more than enough money to try again with other ASIC resistant coins.It’s estimated that Monero’s secret ASICs made up more than 50% of the hashrate for almost a full year before discovery, and during that time, nobody noticed. During that time, a huge fraction of the Monero issuance was centralizing into the hands of a small group, and a 51% attack could have been executed at any time.

Source: The State of Cryptocurrency Mining – Sia Blog

Smart contracts, stupid humans: new major Ethereum ERC-20 token bugs BatchOverflow and ProxyOverflow | Attack of the 50 Foot Blockchain

Smart contracts are fundamentally bad software engineering, part 666 of a never-ending series — PeckShield have been running an automatic scanner on the public Ethereum blockchain:Built on our earlier efforts in analyzing EOS tokens, we have developed an automated system to scan and analyze Ethereum-based (ERC-20) token transfers. Specifically, our system will automatically send out alerts if any suspicious transactions (e.g., involving unreasonably large tokens) occur.They’ve found a couple of beauties, which they’ve branded “BatchOverflow” and “ProxyOverflow.” These affect multiple ERC-20 tokens — which are the basis for almost all ICOs.The root cause is that smart contract coders just copy each other’s code a lot, because who needs formal methods when you can cut’n’paste’n’bodge.

Source: Smart contracts, stupid humans: new major Ethereum ERC-20 token bugs BatchOverflow and ProxyOverflow | Attack of the 50 Foot Blockchain

Blockchain: The Birth of Decentralized Governance by Benito Arruñada, Luis Garicano 

Abstract

By allowing networks to split, decentralized blockchain platforms protect members against hold up, but hinder coordination, given that adaptation decisions are ultimately decentralized. The current solutions to improve coordination, based on “premining” cryptocoins, taxing members and incentivizing developers, are insufficient. For blockchain to fulfill its promise and outcompete centralized firms, it needs to develop new forms of “soft” decentralized governance (anarchic, aristocratic, democratic, and autocratic) that allow networks to avoid bad equilibria.

Keywords: blockchain, platforms, networks, hold-up, coordination, relational capital, incomplete contracts, decentralized governance

Source: Blockchain: The Birth of Decentralized Governance by Benito Arruñada, Luis Garicano :: SSRN

Bitcoin Was Prone to Bubbles Until Bears Could Bet Against It – Bloomberg

Limits to arbitrage can help explain why Bitcoin has been so bubble-prone. Until recently, it was easy enough to take a long position, but expensive and risky to bet against the cryptocurrency. Things really changed in December, when U.S. regulators allowed the trading of Bitcoin futures. That move came in the middle of a historic runup in the price of Bitcoin and other cryptocurrencies. But as soon as futures contracts began to trade, an interesting thing happened — futures prices suggested that Bitcoin’s growth would slow.What happened next is historic. Bitcoin’s price crashed from a high of about $19,000 to less than $7,000 as of the writing of this article:

Source: Bitcoin Was Prone to Bubbles Until Bears Could Bet Against It – Bloomberg

Blockchain Protocol Analysis and Security Engineering 2017 | Cyber Initiative

The conference will explore the use of formal methods, empirical analysis, and risk modeling to better understand security and systemic risk in blockchain protocols.  The conference aims to foster multidisciplinary collaboration among practitioners and researchers in blockchain protocols, distributed systems, cryptography, computer security, and risk management.

Source: Blockchain Protocol Analysis and Security Engineering 2017 | Cyber Initiative