Post
Topic
Board Economics
Re: Transactions Withholding Attack
by
AnonyMint
on 20/11/2013, 07:23:50 UTC
Quote
Quote
The cartel can give 0-confirmation transactions to its customers, because these are going to be repeat customers because the cartel covers so much commerce.

Everyone can give 0-confirm transactions to their customers.  That's a question of business risk, not capacity.  It happens now.  Please search for the fast-transaction problem and/or the vending machine problem.

Don't play dumb just to obfuscate the point.

The point is the cartel doesn't have delay transactions for its customers when it withholds them from the other miners.

YES IT DOES! The nature of the protocol requires that the cartel delay transaction processing for it's customers because it withholds them from other miners.  There is no way to avoid it!  That's what you can't wrap your head around!

INCORRECT!

You still didn't get the point.

The customer will never care that the transaction is delayed into the blockchain (delayed until the cartel's mining servers wins a block in the proof-of-work), because Amazon will give their customers 0-confirmation access to what they purchased.

So that delay is irrelevant.

Whereas when the non-cartel transactions are delayed because the cartel's mining servers don't include them in their blocks, the non-cartel customers using a normal bitcoin client will notice the delays.

So thus this drives the system towards competing cartels which can offer 0-confirmations due to repeat customers.

Then cartels merge to increase profits.

Same old shit that happens over and over in history.