The Bank of Canada (BoC) published the results of a study on «incentive compatibility» technology of the blockchain, which is called double spending «unrealistic» phenomenon.
In the new study, the BoC focuses on the algorithm of proof of work (PoW) for the technology of the blockchain, the modeling of the behavior used by some popular cryptocurrency, so-called model of «honest and dishonest miner».
Researchers from a canadian Bank modeled system to verify whether you are affected by digital registry, such as blockchain, some types of fraud, including double spending performed by the user, changing the registry data for their own benefit.
The study says that the main innovation of the blockchain, is making the users themselves responsible for the security of the system – that is, it approves the transaction in that case, if you agree of its users.
«If a single miner controls more than half of all computing power, it theoretically gets the possible to implement the «attack 51%», where the dishonest miner has a transmission level that exceeds the other honest miners and thus can realize the fraud, carrying out re-spending», the study says.
However, the authors of the study noted that from an economic point of view, «dishonest miner» must have «deep pockets» and be «neutral from the point of view of risk.»
«These assumptions are unrealistic in practice, users have few economic incentives to implement such an attack, especially when investing in computing power to other miners are great,» they write.
The reason for the study was the question the senior Director of research in the management of cash and banking service to the BoC James Chapman (James Chapman) about the effectiveness and safety of using the technology of the blockchain is to banking.