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Binance flirts with a Bitcoin re-org: 'More damage than the actual hack'

source-logo  chepicap.com 08 May 2019 07:27, UTC

The crypto community is divided about Binance's intention to propose a re-org of the Bitcoin network after the $40 million hack on the exchange on Tuesday. Following talks with miners and community pressure, Binance decided not to issue a rollback, but the idea only has already sparked a debate within the community.

During an AMA shortly after the hack, Binance CEO Changpeng Zhao dropped the news that their team was discussing whether they want to do a rollback of the Bitcoin network. CZ said they could do it 'within a few days'. During that same AMA, the community turned against the idea already, and this was followed up by resistance on Crypto Twitter.

Eventually, CZ announced that after discussion with miners, they decided not to do a re-org as it could damage the credibility of Bitcoin. But for some in the crypto community this was already too late. Proposing the idea, and seriously thinking about rolling back the Bitcoin network, was enough for them to say that Binance had gone too far.

You couldn't even if you tried though. But nice attempt at social signaling.https://t.co/9AMsApYI0H

— WhalePanda (@WhalePanda) May 8, 2019

I woke up this morning with the desire to re-org Bitcoin.
After speaking with various parties, including @SatoshiLite, @fluffypony, @Excellion, @realDonaldTrump and others, I decided NOT to pursue the re-org approach.
You're welcome. #Delusionalhttps://t.co/q8GpzoWZnV

— WhalePanda (@WhalePanda) May 8, 2019

Dear followers. I have decided not to rewind the Binance blockchain. I came to this conclusion after intimate discussions with the community, and include the following considerations (1/43):

— Leo Weese 獅草地 (@LeoAW) May 8, 2019

not sure how to tell you this, but the fact that you thought you could pull off a reorg to stick it to your “hackers” has already damaged the credibility. pic.twitter.com/H15XEvHoco

— Buttcoin (@ButtCoin) May 8, 2019

the bigger issue, and one i have been vilified for regulalry pointing out, is that PoW chains can not and do not provide finality, by design. at best you can get is probabilistic / asymptotical.

advocating PoW chains as financial infrastructure is a recipe for reorgs and chaos. https://t.co/5cnm2J9BH3

— Tim Swanson (@ofnumbers) May 8, 2019

it actually is possible, that's why the maximalists are freaking out over your suggestion: because it can be done. nothing technically prevents this from happening in a PoW chain. https://t.co/ib7o9My9NL

— Tim Swanson (@ofnumbers) May 8, 2019

Considering re-org as an option has caused more damage to your reputation, than the actual hacking. 👎

— h2o 46 (@h2o_46) May 8, 2019

Thought you went crazy for a little while CZ. To even contemplate this is cryptocide.

— Addicted (@coinwatches) May 8, 2019

It will be interesting how your willingness to collude with miners for personal gain will impact your reputation going forward.

— DJ Booth (@djbooth007) May 8, 2019

Eventually, Binance decided after discussions with miners not to pursue the plans to save the credibility of Bitcoin and to prevent split in the Bitcoin network and the community, something that was already starting only hours after the AMA.

One of Ethereum's lead researchers Vlad Zamfir thinks the reason why CZ decided not to do a Bitcoin re-org was not because he didn't want to, but because the community was turning against the idea.

Truth is that reorgs are not prevented by the Bitcoin protocol (except against low hashrate mining coalitions), but instead by the social, legal, and political reality of the Bitcoin community

CZ says "pls", Bitcoiners say "no" and demand homage, so CZ says "ok! It's #immutable" https://t.co/zhFhBSt8SH

— Vlad 'ETH is not money' Zamfir (@VladZamfir) May 8, 2019

Crypto influencer @boxming thinks miners would have never agreed with the re-org, even if Binance wanted to.

Like I previously mentioned, no sane miner, not even @JihanWu would agree to attempt a rollback for Bitcoin. No one entity owns that much hashrate / nor would it be possible to rollback Bitcoin for a "revenge" on the Hacker. https://t.co/zghGnZpTfR

— Boxmining (@boxmining) May 8, 2019

Binance CZ had the last say in the discussion. 'To put this to bed, it's not possible, bitcoin ledger is the most immutable ledger on the planet. Done.'

To put this to bed, it's not possible, bitcoin ledger is the most immutable ledger on the planet. Done. https://t.co/rKLBCEZmgp

— CZ Binance (@cz_binance) May 8, 2019
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