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Silicon Valley Bank Collapses
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Bud:
How's that different from your street corner bank? Every bank has an Anti-Money Laundering (AML) department and Fraud department for a reason, to let you know.
Bud:

--- Quote from: coppice on March 16, 2023, 02:05:04 pm ---
As it says on the Wikipedia page, "A network of communicating nodes running bitcoin software maintains the blockchain.". Attack those, and you have control.

--- End quote ---
What control ?
coppice:

--- Quote from: Bud on March 16, 2023, 02:15:38 pm ---
--- Quote from: coppice on March 16, 2023, 02:05:04 pm ---
As it says on the Wikipedia page, "A network of communicating nodes running bitcoin software maintains the blockchain.". Attack those, and you have control.

--- End quote ---
What control ?

--- End quote ---
He who manages the ledger controls the ledger. He who controls the ledger controls what's on the ledger.
tom66:

--- Quote from: coppice on March 16, 2023, 02:20:18 pm ---
--- Quote from: Bud on March 16, 2023, 02:15:38 pm ---
--- Quote from: coppice on March 16, 2023, 02:05:04 pm ---
As it says on the Wikipedia page, "A network of communicating nodes running bitcoin software maintains the blockchain.". Attack those, and you have control.

--- End quote ---
What control ?

--- End quote ---
He who manages the ledger controls the ledger. He who controls the ledger controls what's on the ledger.

--- End quote ---

But you could only do that with 50% of the nodes in your evil network.  That's the whole point of the blockchain authentication which is performed by miners on the network.  It's impractical to take control of so many nodes. 

Ignoring the outrageous power consumption of operational Bitcoin, it is a genuinely novel and smart solution to decentralised currency.  But it doesn't scale.  It handles a couple of transactions a second, compared to Visa/Mastercard processing something like 20k per second, but Visa/Mastercard do that with about 10 datacenters (power consumption ~100MW total) whereas at last count Bitcoin was running at around the power consumption of Czechia!


--- Quote from: bdunham7 on March 16, 2023, 01:57:37 pm ---
--- Quote from: james_s on March 16, 2023, 07:08:26 am ---What if they were to limit the rate at which money could be withdrawn? I suppose that would cause all manner of other problems. The problem happens when too many people withdraw too much too rapidly.

--- End quote ---

If they try to change the terms retrospective of the deposit you can expect a full blown panic and a spot on the evening news.  To reduce the 'runnability' of a deposit portfolio, the bank has to offer time deposits that are either less likely to be withdrawn (retail CDs) or are impossible to withdraw early (brokered deposits).  Of course they have to pay more for that money.  If you can get billions of deposits in non-interest bearing transactional accounts you can make more profit.  Risk?  Oh, we fired that guy and haven't replaced him.

--- End quote ---

The other problem at least in case of companies using banks like SVB is it's quite reasonable to draw a significant amount of cash in a business account down, e.g. to run payroll.  If you say max 10% of balance can be withdrawn per day, then payroll becomes non-viable for some companies.
coppice:

--- Quote from: tom66 on March 16, 2023, 02:27:10 pm ---
--- Quote from: coppice on March 16, 2023, 02:20:18 pm ---He who manages the ledger controls the ledger. He who controls the ledger controls what's on the ledger.

--- End quote ---
But you could only do that with 50% of the nodes in your evil network.  That's the whole point of the blockchain authentication which is performed by miners on the network.  It's impractical to take control of so many nodes. 

--- End quote ---
A committee made changes to how bitcoin works. We are living through a period where many august ancient institutions have been turned upside down by activists getting into the controlling positions. What makes bitcoin immune. Its actually the MOST centrallsed form of finance. One committee rules them all.
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