The DARPA research agency has conducted research on the nature of digital currencies. DARPA research questions the decentralized nature of the Chinese bloc.
China Blockchain technology can help push the current boundaries of technology, however, users need provable facts to make the right decisions and take reasonable risks on their assets. These facts must be proven through reproducible methods and open data.
The inherent dangers of the Chinese blockchain and digital currencies do not seem to be well described. The facts of the cryptocurrency market are often denied or even ridiculed by those seeking to make money from the field. In response to recent market turmoil and the sharp decline in the price of cryptocurrencies, the question arises as to whether digital currencies are really decentralized.
Read more: What is digital currency sticking?
DARPA research in the field of digital currencies
The Defense Advanced Research Projects Agency (aka DARPA) is a technology-based organization operating under the auspices of the US Department of Defense. The organization has played an important role in the production of micro-spy drones and giant anti-radar bombers. Recently, research has been conducted by DARPA Agency to verify the decentralization of cryptocurrencies. In this experiment, DARPA wanted to understand the security assumptions of the China Bloc and determine how decentralized the China Block really is.
One of the advantages of the Chinese blockchain over other financial technologies is that it is decentralized. Decentralized financial technology means that no company, entity or individual can control that asset. In the DARPA experiment, Trail Of Bites researchers performed field-based analyzes with real-world findings and previous academic research. During the experiment, DARPA researchers updated some of their previous research with new data. “Trail Of Bites CEO Dan Guido said:
Many people believe that the Chinese bloc is decentralized and immutable, so this is generally true. The power of cryptocurrencies is in the hands of individuals and organizations that have more money. We see this happening in other structures active in the field of investment.
Trail of Bits describes the basic problem of blockchain as “unwanted centralization.” Observing unwanted centrality in the Chinese block calls into question the nature of this network. How is it possible for a person or entity to influence the so-called centralized structure of the Chinese bloc and manipulate property records to its advantage?
According to DARPA research, only three ISPs control 60% of all bitcoin network traffic. In other words, a cyber attack on one of these ISPs can severely disrupt the bitcoin process. This disorder will not be caused only by hackers. Anyone with excessive access to ISPs will be able to make changes to it.
Another important result of DARPA research is the weakness of the bitcoin platform. According to DARPA, 21% of Bitcoin network nodes are using the old and vulnerable version of Bitcoin Core.
Soland Platform Efforts to Control the Market
Recently, the Soland platform tried to take control of the largest account on the platform in order to prevent malicious actions in the Solana network. Soland believes that the platform’s largest account carries out malicious activities within the network with its assets.
In order to carry out this activity, Soland conducted a survey among its users. The poll found that 99.8% of users opposed the blocking of the Soland Whale account. It turned out that about 1 million votes out of a total of 1.48 million votes belonged to the whale account.
Another strong reason for rejecting the claim that the Chinese block is decentralized is the lack of Sybil costs in the network. In any blockchain network for optimal distribution, there must be a cost called Sybil. There is currently no known way to implement Sybil costs on the network without using a third party license (TTP). Unless a mechanism is in place to impose Sybil costs without TTP, 100 percent decentralization in the Chinese bloc will be almost impossible.
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Source: blog.trailofbits