Wrong again. There’s no cryptography, no encryption in Bitcoin, none of that. It’s ECDSA, a digital signature algorithm, plain and simple. Everything’s in plain text. Yet people keep screwing this up like it’s some mystery. No encryption in Bitcoin, never was. You’d think by now they’d get it, but nah, they just keep running in circles, missing the point.
Bitcoin’s security fundamentally stems from game-theoretic economic incentives, not from cryptographic primitives alone.
Miners and nodes are economically motivated to follow the rules because the system rewards fair behavior and penalizes deviations. The digital signatures you mention verify transactions, but they do not secure the system. The true strength of Bitcoin lies in the competitive nature of its network: miners invest in resources to gain rewards, and any attempt to alter transactions or break consensus would result in financial losses.
As Bitcoin scales, the economic incentives become even more pronounced. It is not about cryptography protecting values or balances; it’s about creating a system where no participant gains from acting maliciously.
Changing the rules or attacking the network becomes unprofitable, ensuring stability. The balance of incentives is what secures the network, not cryptographic obscurity or digital signatures alone.
S. Tominaga AKA CSW
Oct 6, 2024
https://x.com/CsTominaga/status/1842957639002833238?t=gM9B33_OSWraFUKk5nucxQ&s=19
https://t.me/S_Tominaga/1100
Bitcoin’s security fundamentally stems from game-theoretic economic incentives, not from cryptographic primitives alone.
Miners and nodes are economically motivated to follow the rules because the system rewards fair behavior and penalizes deviations. The digital signatures you mention verify transactions, but they do not secure the system. The true strength of Bitcoin lies in the competitive nature of its network: miners invest in resources to gain rewards, and any attempt to alter transactions or break consensus would result in financial losses.
As Bitcoin scales, the economic incentives become even more pronounced. It is not about cryptography protecting values or balances; it’s about creating a system where no participant gains from acting maliciously.
Changing the rules or attacking the network becomes unprofitable, ensuring stability. The balance of incentives is what secures the network, not cryptographic obscurity or digital signatures alone.
S. Tominaga AKA CSW
Oct 6, 2024
https://x.com/CsTominaga/status/1842957639002833238?t=gM9B33_OSWraFUKk5nucxQ&s=19
https://t.me/S_Tominaga/1100
Comments
Be the first to add a comment
Log in to comment