2018-6-18 07:30 |
It cited the decentralized nature of cryptocurrencies — Bitcoin and its imitators are created, transacted, and accounted for on a distributed network of computers — as a fundamental flaw rather than a key strength.
In one of its most poignant findings, the BIS analyzed what it would take for the blockchain software underpinning Bitcoin to process the digital retail transactions currently handled by national payment systems.
As the size of so many ledgers swell, the researchers found, it would eventually overwhelm everything from individual smartphones to servers.
At the same time, cyber-attackers are hitting crypto exchanges regularly — just last week, Bitcoin nosedived after a South Korean exchange reported it was hacked.
“Trust can evaporate at any time because of the fragility of the decentralized consensus through which transactions are recorded,” the report concluded.
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