Tags: 51% attacks, bitcoin, BitGo, GHash.IO, Stratton Sclavos, theories, trust us, worries
Security has become a matter of tremendous concern to the bitiot community, for obvious reasons.
BitGo, which in April rolled out the first enterprise-grade “multi-sig” digital wallet to tackle widespread concerns about bitcoin theft, has attracted $12 million in fresh funding and signed to its board a pioneer in e-commerce security….
Radar Partners’ Stratton Sclavos, a former CEO of Internet certificate authority Verisign Inc., will join BitGo’s board along with Redpoint founding partner Jeff Brody. The involvement of Sclavos carries symbolic significance for BitGo, which in the words of its Chief Executive Will O’Brien, has “ambitions to secure the world’s bitcoins.” It’s also relevant to bitcoin more broadly, with the general public still wary of trusting a digital currency and payment technology that has been subject to massive losses and some troubling hacking attacks.
In a statement Monday responding to concerns that it might use its power to conduct a so-called “51% attack” against the bitcoin network, the exchange that manages bitcoin mining pool GHash.IO said it would back efforts to find a “long-term preventative solution to the threat.”
A so-called 51% attack refers to the idea that if some institution controlled the majority of the network’s computing power it could exploit that dominant position to its own financial advantage. It is considered to be one clear vulnerability of bitcoin’s decentralized system. But it is very much a theoretical threat, and there are a number of reasons to believe such an attack is unlikely.
Bitcoin Security Startup BitGo Gets More Funds; Ex-Verisign CEO Joins Team [WSJ MoneyBeat blog]
BitBeat: Mining Pool Rejects Short-Term Fixes To Avert “51% Attack” [WSJ MoneyBeat blog]