Let's see how Bittrex will protect against attack 51%
I also spoke about it earlier
I also spoke about it earlier
Unfortunately 51% attacks are cheap the perform on small coin networks.
Even 100 confirmations will not guarantee network safety. I've seen longer 51% attack double spends. It also will make things like arbitrage much more difficult for the honest users of the exchange.
My understanding is that Livecoin expected them to orchestrate some sort of bailout/rollback fork to reverse their losses. The Monacoin developers refused, which is a perfectly respectable position for developers of a POW protocol. An impasse was reached and Livecoin never did anything to rectify the issue and compensate their customers.
Same with Monero. Livecoin simply expects the Monero developers to pay them $1.8 million to reimburse their losses. Legally, the developers have no liability. It's right in their software license! On the other hand, Livecoin is legally liable for the deposits its customers made and now won't pay out.
The way Livecoin is acting, you really have to wonder how deeply insolvent they might be.
It depends on the agreement that livecoin has with the developers. A lot of times developers pay to get their coin onto an exchange - that often is accompanied with contractual obligations.
With a 51% attack with double spend the exploit does not occur on the exchange. The coin networks gives valid confirmations that are later tricked into being orphaned by privately mined blocks.
It means that those mined blocks are neither from a decentralized coin network and also shows that the blockchain is not immutable.
Coin developers have the ability to introduce check-pointing or utilizing a hybrid system that makes it more difficult to mount such an attack on the network.
How does a double spend 51% attack work ? Explanation and examples.