BCH community got concerned as an unknown miner of Bitcoin Cash controlled the 50% hash rate for around 24 hours. Rated at number 4 on the coinmarketcap as of press time with a market cap of $4.7 billion it isn’t expected of currencies with trading volumes this high to be controlled by a single party or in this case, a single unknown miner.
The miner was able to mine 73 blocks during the span of 24 hours. With a hash rate this high BCH indeed becomes a liability and security risk as termed by the twitter user Notgrubles. Hash rates this high getting in the wrong hands have already doomed multiple currencies over the period of time. The crypto community also agreed to the sentiment of BCH being a security risk while the founding partner of Adamant Capital Tuur Demeester believed that BCH lacked fundamentals. In his tweet he stated:
Imo BCash is a market completely devoid of fundamentals. Trying to catch the short lived rallies is akin to picking up pennies in front of a steamroller. pic.twitter.com/JUiBfOYlYC
— Tuur Demeester (@TuurDemeester) October 25, 2019
In the past, we have also seen forks falling prey to these kinds of attacks. Earlier this year, Ethereum Classic (ETC) became a victim of a 51% attack and the attackers successfully attempted double-spending during the attack stripping ETCs chain of around $88,500 ETCs. This led ETC to face grave consequences which included getting delisted from all the major exchanges around the world including Coinbase. Seeing BCH as a threat, the twitter user also advised that BCH be delisted from everywhere. The Redditor Bitmeister, however, presented a hypothesis that stated that this amount of hash rate could be coming from bitcoin miners by pointing their bitcoin hash power to BCH.
Putting aside the fact that the community may see this as an experiment or risk, occasions like these clearly point to the issues with the consensus algorithm Proof of Work, the reason being the partial decentralization. Once a party gets a hold of supercomputers and high hash powers, they can easily control and manipulate the chain at will. Although Proof of Stake is termed to be a safer alternative, it also gives power in the hands of the ones who have staked the most amount of ETHs (The attack may risk the stakes of the hacker). A truly decentralized algorithm is yet to be seen that gives equal opportunities to all the miners with a truly randomized algorithm. But till that time when true randomization algorithm is achieved, according to the creator of DogeCoin, consensus algorithms are not designed to be flawless. He stated:
Consensus mechanisms are about aligning incentives to output a decision in the least centralized way. They are not designed to be flawless.