Search
Close
  • Home
  • Business News
  • Crypto News
    • Binance
    • Bitcoin
    • Cardoso
    • Dogecoin
    • Ethereum
    • NFT X Metaverse
    • Shiba in
    • Other alt coins
  • Market News
  • Technology News
  • Tools
    • Crypto Table
    • Exchange Rate
    • Currency Converter
Menu
  • Home
  • Business News
  • Crypto News
    • Binance
    • Bitcoin
    • Cardoso
    • Dogecoin
    • Ethereum
    • NFT X Metaverse
    • Shiba in
    • Other alt coins
  • Market News
  • Technology News
  • Tools
    • Crypto Table
    • Exchange Rate
    • Currency Converter
Search
Close
Home Market News

Is MIT ChainAnchor Still Relevant? This Bitcoin Technical Expert Thinks So

Cointori by Cointori
March 6, 2022
in Market News, Technology News
152
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

RelatedPosts

Medical Disposables Market will be valued USD 765.9 million by 2030 : GreyViews

Global Crypto Payment Gateway Market Is Expected to Reach $5.4 Billion by 2031: Says AMR

Global Thermoelectric Modules Market Is Expected to Reach $1.3 Billion by 2031: Says AMR

Why does a seemingly abandoned MIT project from 2016 still matter in 2021? Because MIT ChainAnchor serves as a model for future attacks to the Bitcoin blockchain. A decentralized, permissionless, and uncensorable network is a threat to the status quo. The value and freedom that Bitcoin brings to the world comes at the expense of those who want the population poor, scared, and easy to control. The thing is, they also see incredible value in the network. And they want to have their cake and eat it too.

Related Reading | Marathon Splashes $120 Million On Bitcoin Miners From Bitmain

A few days ago, Bitcoin technical expert Shinobi brought the MIT ChainAnchor project back into the spotlight:   

This is the most important thing to understand about regarding threats to Bitcoin: https://t.co/iIqZqRJZfj

This is what all the regulation is creeping towards. Don’t worry, they’ll take their time over a decade or two. Like they do with everything they’ve taken away.

— Divided and Conquered (@brian_trollz) August 18, 2021

What is the project about and why is it still relevant? That’s what we’re here to discuss.

All About MIT ChainAnchor ’s Evil Plan

It’s not a secret that Bitcoin has one weak spot: a 51% attack. If a single entity takes control of 51% of the mining hash rate of the network, it could use its newly found powers to alter transactions. Let’s quote Investopedia for precision:

The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users. They would also be able to reverse transactions that were completed while they were in control of the network, meaning they could double-spend coins.

The MIT ChainAnchor project is a variation of this concept. It seemed to attempt “to make the existing permissionless Bitcoin block-chain into a centrally controlled, permissioned chain.” Besides taking control of the network, its aim was to make all the users register their identities in order to participate. It was uncovered by self-proclaimed “cryptochronomancer” Peter Todd, who said:

Based on the information I have available to me, it appears that the MIT ChainAnchor Project is in part an attempt to get Bitcoin users to register their real world identities and associate their transactions with those identities. Initially this would be on an opt-in basis, however it appears that ChainAnchor has a longer-term plan to bribe and coerce miners into only mining transactions from registered users, eventually prohibiting non-registered users entirely.

How was MIT ChainAnchor going to do that? Well…

Taking Control Of The Bitcoin Network In 3 Easy Steps

  1. “Forming a “permission group.” The keys these people held represented the fact that they “complied with AML regulations and registered their real-world identity.” Of course, a backdoor “allowed the system administrators to collude to deanonymize users” That meant “warrants requesting information on user transactions” could be met.
  2. “Bribe miners to only mine blocks containing non-anonymous transactions from registered users.” Of course, “as part of the bribe, miners would also be required to register their identities.” This is a literal quote from the leaked document:

    “In the ChainAnchor semi-permissioned overlay a successful miner receives a further additional payment (beyond the new coins and transaction-fees in Bitcoin) for completing a block consisting only of permissioned-transactions.”

  3. “Eliminate the remaining non-registered miners, making it impossible to use or mine Bitcoin without first registering your identity.” To be fair, that step was not in the leaked document.

“While not in the paper or slides specifically, allegedly the final stage to ChainAnchor is to eliminate unregistered, non-compliant miners from Bitcoin entirely by gradually reducing their profitability until they stop mining or become compliant.”

Where Did The Information About MIT ChainAnchor Come From?

The project seems to have been abandoned. The links to MIT Peter Todd provides are dead. The leaked documents, however, live forever on his own server. About his sources, Todd said:

ChainAnchor isn’t public yet, other than a small blurb on the MIT Trust Consortium website. I’ve obtained leaked copies of their preliminary paper and overview slides from multiple sources (most recently from MIT themselves). I’ve also been contacted by people who alleged that they was approached by the ChainAnchor group for monetary and strategic partnership assistance. 

At the time, Todd reported rumors that “prominent members of the Bitcoin community are involved in the project.” He never revealed who they were. 

BTCUSD price chart for 08/21/2021 - TradingView

BTC price chart for 08/21/2021 on Bitstamp | Source: BTC/USD on TradingView.com

All About The Marathon Case From Early This Year

Even though the MIT ChainAnchor project is no more, its offsprings are. At the beginning of 2021, the Marathon Digital Holdings mining company started censoring transactions and only mining blocks that were “fully compliant with U.S. regulations.” 

Related Reading | A Bitcoin Maximalist’s Harsh Criticism Of The Lightning Network

After a strong backlash, Marathon stopped mining the infamous “OFAC-compliant blocks.” The press release they issued said, “Marathon is committed to the core tenets of the Bitcoin community, including decentralization, inclusion, and no censorship.” That rhymes with Peter Todd’s suggestion to treat MIT ChainAnchor as “a threat model exercise.”

“What’s interesting about this threat is the attacker is trying to change the composition of the mining community itself from less to more regulated, using profitability as a weapon. As defenders – and protocol designers – we have to figure out what kind(s) of miner we’re trying to encourage to achieve our goals, and how to ensure the economic incentives of the system keep those miners profitable.”

If we judge it by the Marathon case, it seems like the Bitcoin community is more prepared for these kinds of sneak attacks than in 2016. However, don’t forget Shinobi’s warning, “This is what all the regulation is creeping towards. Don’t worry, they’ll take their time over a decade or two. Like they do with everything they’ve taken away.”

Featured Image by Brett Jordan on Unsplash - Charts by TradingView
Share61Tweet38Send
Cointori

Cointori

Related Posts

Medical Disposables Market will be valued USD 765.9 million by 2030 : GreyViews

February 1, 2023

Global Crypto Payment Gateway Market Is Expected to Reach $5.4 Billion by 2031: Says AMR

February 1, 2023

Global Thermoelectric Modules Market Is Expected to Reach $1.3 Billion by 2031: Says AMR

February 1, 2023

Feminine Hygiene Market Size to Surpass USD 58.8 Billion by 2030 at 5.7% CAGR – Report by Market Research Future (MRFR)

February 1, 2023

Animal Health Market Size Worth USD 75.02 Billion by 2030 at 7.6% CAGR – Report by Market Research Future (MRFR)

February 1, 2023

US Stocks Open Lower; Dow Drops 125 Points

February 1, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest

Is The Ethereum Merge About To Have A Confirmed Delay?

April 15, 2022

Data Leak At Unchained Capital, NYDIG, Swan & BlockFi. At The Same Time

March 21, 2022

Fantom Foundation Responds To Andre Conje’s Departure

March 6, 2022

The Andy Milonakis NFT Show, EP. 20 – Goat Soup’s Dark Night Of The Soul

April 26, 2022

IRA Financial Breach: Hackers Snatch $36 Million From US-Based Fintech Startup

0

Bitcoin Hash Rate Balloons To Record High — Will Price Go Up As Well?

0

Ethical Blockchain: Are Crypto, NFTs And DeFi Bad For The Environment? Here’s Why They’re Not

0

Mexican Billionaire Says It Again: Buy Bitcoin Today — And Thank Him Later?

0

Medical Disposables Market will be valued USD 765.9 million by 2030 : GreyViews

February 1, 2023

Global Crypto Payment Gateway Market Is Expected to Reach $5.4 Billion by 2031: Says AMR

February 1, 2023

Global Thermoelectric Modules Market Is Expected to Reach $1.3 Billion by 2031: Says AMR

February 1, 2023

Feminine Hygiene Market Size to Surpass USD 58.8 Billion by 2030 at 5.7% CAGR – Report by Market Research Future (MRFR)

February 1, 2023

Categories

  • Binance (49,357)
  • Bitcoin (92,200)
  • Business News (97,601)
  • Cardoso (40,848)
  • Crypto News (48,643)
  • Dogecoin (40,848)
  • Ethereum (41,222)
  • Market News (85,513)
  • NFT X Metaverse (40,848)
  • Other alt coins (40,894)
  • Others (2)
  • Shiba in (40,848)
  • Technology News (84,945)

Coin Tori is the #1 Crypto and business blog you can always trust to feed you with the necessary infomation.

Facebook Twitter Linkedin Instagram

Categories

  • Business News
  • Crypto News
  • Technology News
  • Bitcoin
  • Binance
  • Cardoso
  • Other Alt Coin
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Shiba in
  • Market News
  • Others

Tool

  • Crypto Table
  • Exchage Rate
  • Currency Converter

All right reserved - Cointori

Designed By Gentry Stack

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. Read More
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
bitcoin
Bitcoin (BTC) $ 23,051.18 0.47%
ethereum
Ethereum (ETH) $ 1,581.78 0.69%
tether
Tether (USDT) $ 1.00 0.00%
usd-coin
USD Coin (USDC) $ 1.00 0.17%
bnb
BNB (BNB) $ 308.49 1.48%
xrp
XRP (XRP) $ 0.40199 0.36%
binance-usd
Binance USD (BUSD) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.379451 2.27%
dogecoin
Dogecoin (DOGE) $ 0.090768 3.30%
matic-network
Polygon (MATIC) $ 1.09 1.50%
  • Home
  • Currency Converter
  • Business News
  • Crypto News
  • Binance
  • Bitcoin
  • Cardoso
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Other alt coins
  • Shiba in
  • Market News
  • Others
  • Technology News
Menu
  • Home
  • Currency Converter
  • Business News
  • Crypto News
  • Binance
  • Bitcoin
  • Cardoso
  • Dogecoin
  • Ethereum
  • NFT X Metaverse
  • Other alt coins
  • Shiba in
  • Market News
  • Others
  • Technology News