51% Attack Question

  1. CCRevolution
    Administrator Staff Member
    Messages:
    59
    Likes Received:
    150
    Trophy Points:
    33
    November 30, 2017 at 10:24
    Question presented on Reddit:

    Hi guys, I'm trying to understand why Xtrabytes isn't vulnerable to a 51% attack? Is the consensus driven by the majority of static nodes? Without a proof of work, what's stopping someone setting up a majority of Static Nodes?


    Answer:

    How can the 51% attack even be possible?

    We really need to stop comparing PoSign to what you already know about crypto. XTRABYTES is changing the game in just about every way that is necessary. The truth of the matter is that BLOCKCHAIN can be better!

    There is a reason why setting up a STATIC node has a price and that price is in the form of a deposit (yes you get it back later if you break your node) and that deposit is the basis of trust. So, if we travel down this road the writer suggests, the person wanting to own 51% of the nodes would have to have purchased 51% of the STATIC supply of XBY.

    This is not technically or financially impossible, so you can have that. But, here is where the idea falls flat; just because you own all this XBY does not mean you have all the STATICS.

    The next thing you might try is to convince all the owners to sell their STATIC registrations to you. Well, I am sure many will happily sell to you for a premium and your investment will become quite extensive. However, you will run into brick walls because there are many who simply will NOT sell and I am one of them.

    STATIC ownership is like owning real estate in the XTRABYTES universe. These little pieces of property even offer income producing asset status in the future because as we begin to support DApps and Modules, such as: X-CHANGE, X-VAULT and others which will offer “profit sharing type arrangements” you will find it very difficult to get people to part with their daily income asset stream.

    But, let’s entertain this a bit more: Assume a large “Google type corporation” decides they want to take over XTRABYTES and they go out and start targeting all the STATIC owners and they manage to convince 51% of them to bow out, to the tune of a couple Billion dollars. Now what? Are they going to flush the project down the drain along with their money? Not likely...

    Otherwise, here is the part you must understand: The other 49% are part of the original XTRABYTES and there could be 1 single HOLDOUT that is an offline STATIC (call it an ace in the hole) that in the event of an attack where someone tries to gain control of the network can be activated to come back online and it could blacklist the 2 Billion Dollar STATIC network that has been bought by a rogue corporation that had bad intentions for the XTRABYTES network.

    It would now be up to the owners of the blacklisted STATIC nodes to come back into consensus before they will be allowed to return to active status.

    So, to answer your question is a more simple way: 51% attack does not exist as a possibility with the XTRABYTES network. This is just one of MANY flaws in the Bitcoin system that is being corrected by the XTRABYTES system.
     
    trannam, inthearena, fish313 and 2 others like this.
  2. Supreme
    Administrator Staff Member
    Messages:
    102
    Likes Received:
    46
    Trophy Points:
    28
    November 30, 2017 at 12:46
    fish313 and inthearena like this.
  3. enki
    Well-Known Member
    Messages:
    116
    Likes Received:
    82
    Trophy Points:
    28
    November 30, 2017 at 04:30
    inthearena likes this.
  4. fish313
    Well-Known Member Staff Member
    Messages:
    102
    Likes Received:
    82
    Trophy Points:
    28
    November 30, 2017 at 04:54
    Thank you for this answer.
     
  5. Sundego
    Member
    Messages:
    17
    Likes Received:
    3
    Trophy Points:
    3
    November 30, 2017 at 05:35
    Still a bit confused, but to be fair, I'm just generally new to cryptocurrencies. It seems promising, certainly, but I've gotta re-read this again. I'll edit in some questions here later on if it still doesn't make sense. Seems like I need to figure out more about what STATIC is.
     
  6. enki
    Well-Known Member
    Messages:
    116
    Likes Received:
    82
    Trophy Points:
    28
    November 30, 2017 at 05:52
    Best is to read through all the FAQs to start with...

    https://community.xtrabytes.global/faq/
     
  7. Sundego
    Member
    Messages:
    17
    Likes Received:
    3
    Trophy Points:
    3
    November 30, 2017 at 05:56
    enki likes this.
  8. 0D2EBones
    New Member
    Messages:
    5
    Likes Received:
    2
    Trophy Points:
    3
    December 5, 2017 at 08:24
    CCR, I love the overall effort you put in as well as the reply here. There is one significant aspect that I haven't been able to understand or find an answer on yet: What mechanism is in place to differentiate good nodes from rogue ones? If a single node could come online and blacklist a rogue 50%+ amount of nodes, what is preventing those nodes from blacklisting the other nodes first? Is there an argument that such an action would simply result in a hard fork away from the rogue nodes or ... ?
    Thanks and keep up the great work - things are really moving along well!
     
    trannam and inthearena like this.
  9. inthearena
    Member
    Messages:
    25
    Likes Received:
    6
    Trophy Points:
    3
    December 11, 2017 at 01:48
    Thanks heaps for the effort here guys. The responsiveness of the team gives me confidence in this project.
     
  10. Jonathan
    New Member
    Messages:
    9
    Likes Received:
    4
    Trophy Points:
    3
    December 11, 2017 at 11:27
    Would be cool to get an answer for this Q.
     
    inthearena likes this.
  11. trannam
    Member
    Messages:
    17
    Likes Received:
    0
    Trophy Points:
    1
    December 17, 2017 at 07:47
    Voted for a good question
     
  12. alienrobot
    New Member
    Messages:
    3
    Likes Received:
    0
    Trophy Points:
    1
    December 26, 2017 at 03:03
    Good question, and also good information in this thread on an important aspect of XBY's security.
     
  13. Aspergillus
    New Member
    Messages:
    11
    Likes Received:
    0
    Trophy Points:
    1
    December 27, 2017 at 08:56
    Thats exactly the question that came up for me when I read this post. What stops me from registering a STATIC node go offline, come back and blacklist all nodes that are not controlled by me?