When Binance lost $40 million to hackers this week, the crypto community discussed reorganizing the chain after it was suggested by a developer from MIT. Many people were upset by this proposition, declaring that there was no way a coordinated effort with miners could be pulled off. However, most bitcoiners don’t seem to remember that a similar centralized decision was made in 2013, when Btc Guild’s hashrate was leveraged to downgrade the main chain from Bitcoin 0.8 to version 0.7.
Crypto Community Outraged Over Reorg Discussion
Cryptocurrency advocates have been all riled up discussing a theoretical reorganization of the Bitcoin Core (BTC) blockchain. The conversation heated up after it was suggested by the developer Jeremy Rubin and Binance CEO Changpeng Zhao (CZ), who mentioned it after his exchange lost $40 million worth of BTC. Some people became extremely upset at the mere discussion of a reorganization and stated that there was no way it was possible. People have argued the subject for hours and have written long-winded posts filled with theories and calculations.
There are a couple of ways to trigger a blockchain reorganization, which occurs when the chain of recorded blocks is invalidated or orphaned by either a 51% attack or another method, forcing miners back to a point where they have to start again from a specific block height. It’s akin to rolling back a recorded history of transactions and then re-recording them again, but of course the new transactions would never be the same as the ones that were erased. If this technique was used, some believe the history of the Binance transaction which saw the loss of 7,000 BTC would be erased as well.
The Coordinated Effort to Roll Back to Bitcoin Version 0.7 in 2013
After all the discussions on social media concerning centralized entities possibly reorganizing the chain to erase the loss $40 million,…