Just watched Ivan’s Do you REALLY understand Bitcoin Stale Blocks? Programmer explains on stale & orphan blocks, it was very interesting but left me with a question…
What would happen if you were miraculously able to hack a major blockchain like Etheror Bitcoin to the extent that you maintained the longest chain for say…4 hrs… and in this hack you steal millions of coin (actual coin, which is a fraction of fiat equivalents).
The 4 hr window may be long enough to get the standard 6 confirmations to come through on an exchange. Or maybe you’re using a slightly less reputable exchange that uses less confirmations.
During this time you trade your “stolen” bitcoin for alt coins across multiple exchanges which of course are on other block chains.
You even sell some on local bitcoins or another escrow-like service at a steep discounoyt for true cypto under the guise of “looking for a quick cashout” say 1BTC : 6ETH given a market rate is 1 BTC for 8 ETH.
This seems to be a futuristic version of Check-kiting -
tl;dr: you double/multi-spend money by taking advantage of the slow bank check-clearing times and the internal bank trust limits.
How would all of the affected networks rectify this situation?
side note: It seems like the affect of a similar situation for IOT-based chains would have an even worse affect because its dealing with physical things which are not as easily reversible.
I would love to hear community input here before positing the question to more forums.