All balances are stored on a shared database called the vault.
When this database is updated, how do you reach consensus on the correct version of the new database?
The only thing you can do is accept the most popular version. But, if someone is conducting a 51% attack,
the most popular version will have an unusually low percent of corroboration, closer to 50%. So the data is only acceptable
while it has a high degree of corroboration - very close to 100%.
BS! most popular version? how is that defined?
if I set up a lot of nodes then I can decide which the most popular version is. Depending on network topology and the location of a node, the most popular version can vary from one node to another.
You'll need enough nodes with unique IP addresses to get the minimum consensus.
But the minimum consensus will scale up as the network grows.
With 1,000 nodes or less, the minimum consensus is 95%. You'll need to add 19,000 impostor nodes. But...
With 10,000+ nodes, the minimum consensus increases to 96%. You'll need to add 240,000 impostor nodes. But...
With 100,000+ nodes, the minimum consensus increases to 97%. You'll need to add 3,233,333 impostor nodes. But...
With 1,000,000+ nodes, the minimum consensus increases to 98%. You'll need to add 49,000,000 impostor nodes. But...
With 10,000,000+ nodes, the minimum consensus increases to 99%. You'll need to add 990,000,000 impostor nodes. But...
etc.
etc.
etc.
Network topology and geographical location only effects latency between nodes, not their ability to communicate.
Yes, it does affect they communicate, or do you want each node to be connected to other 10M nodes and share tx data with everyone? That doesn't work because it requires too much bandwith. The number of nodes each node connects to must be limited (I think it's 125 in BTC)
Also, any ISP can easily own the network.