Tech 20 September 2018Erik Gibbs
Sterlin Lujan: 51% attacks are highly exaggerated
Sterlin Lujan, cryptocurrency expert and ambassador to Bitcoin.com, recently participated in an exclusive interview with the crypto website cryptovest.com. Lujan broached a number of subjects, including 51% attacks and the future of Bitcoin BCH. His insight shines a great deal of light on the future of the crypto ecosystem and the part played by mining in the entire endeavor.
Lujan identifies the biggest risk to cryptocurrencies as being the developers themselves. He points out that Bitcoin Core (BTC) developers didn’t properly scale to meet market demand, resulting in a stagnation of the market share. He asserts that not being able to trust the developers to scale to the demand, the cryptocurrency use case becomes extremely damaged. He stated, “I think the outside security risks are much less visible and much less likely to occur than the internal risks. Being able to protect cryptocurrencies as cryptocurrencies is extremely important – 100%!”
Specifically touching upon Bitcoin BCH’s position in the cryptocurrency food chain, he indicated in the interview that the digital currency is “poised to be the cryptocurrency of the future as it fits the criteria of being an actual cryptocurrency…” Lujan ads that ultimately, however, there doesn’t need to be just one single cryptocurrency—many can exist in a cohesive system as long as they are “usable, efficient and growing with demand.”
When asked about a statement he recently made at the NEXT BLOCK conference in Bulgaria regarding 51% attacks being exaggerated, Lujan clarified that he believes there will always be some degree of mining centralization, even though crypto is designed to be decentralized. “Without mass adoption and with intensifying government efforts to regulate cryptocurrencies, entrepreneurs will have fewer opportunities to get involved in the mining process and compete with the already operating miners,” he explained.
Lujan added, “The [51%] problem is overstated. There are no incentives for these miners to conduct a 51% attack and break the network. If they do that, it would be like shooting themselves in the foot, shooting themselves in the head even.”
To support his assertion, Lujan points to the attack that was launched against the ZenCash network. Following the attack, developers upgraded the protocol, made changes and enhanced the network to keep moving forward. “So, a 51% attack is not all doom and gloom. There is still an opportunity to pivot and to survive those attacks,” he stated.
Lujan also sees an extremely bright future for cryptocurrency in general. He expects to see even more decentralization, entrepreneurship and other products thriving in the space as it continues to mature.
Bitcoin BCH is especially centered to be the leading cryptocurrency. According to Lujan, “The developers have made it so open source that people can now build initial coin offerings on top of it, launch smart contracting platforms, and create colored coins because the opcodes have been enabled. You can’t do this with the [BTC] network anymore. It generates additional use cases.”
The main takeaway is that cryptocurrencies need to be created to prevent them from being intercepted, frozen or seized. As long as there is a substantial amount of decentralization to allow for censorship-resistant transactions, the industry will be able to flourish.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
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