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How is it that this can't be prevented by the Bitcoin network? The network should be able to mark coins stolen and unusable...oh wait it can't. Because in order to do that you'd need a trusted third party to verify the coins were stolen defeating the purpose of a distributed ledger that doesn't require third party trust. Yet another shortcoming of trying to replicate cash.
Can someone explain how is it possible to steal Bitcoin if every transaction is recorded in a public ledger? Does not every bitcoin have its own signature which allows you to track its movement? New to this.
In Ethereum's DAO hack, tokens were also stolen, but they got lucky and the money wasn't spendable for a while (because of how the transaction/contract was written), so they were actually able to convince the entire network[1] to agree to reverse that theft as part of the protocol and recover the tokens that way.
[1] Minus a fragment that became EthereumClassic.
How is it that this can't be prevented by the Bitcoin network? The network should be able to mark coins stolen and unusable...oh wait it can't. Because in order to do that you'd need a trusted third party to verify the coins were stolen defeating the purpose of a distributed ledger that doesn't require third party trust. Yet another shortcoming of trying to replicate cash.
Really depends on your point of view. The entire use-case of Bitcoin is that no one can reach back in time and "undo" transactions. There is no point for it to exist otherwise.
It's a feature, not a bug.
How is it that this can't be prevented by the Bitcoin network? The network should be able to mark coins stolen and unusable...oh wait it can't. Because in order to do that you'd need a trusted third party to verify the coins were stolen defeating the purpose of a distributed ledger that doesn't require third party trust. Yet another shortcoming of trying to replicate cash.
If someone stoles cash from you, how do you mark that cash as stolen?
Earlier quoted context omitted.
Yes it is possible to check the history of a Bitcoin and see that it has been stolen. Provided that you take the effort to do that. This is no different than when a bank is robbed and banknotes are stolen. The bank might have written down the numbers of the banknotes and those can be published. But most shops won't check those when somebody buys something.
With bitcoins, it is easier to track the notes, but it is also easier to get rid of the association if you find someone willing to clean them for you. Say I steal 10 bitcoins from you. I go to someone who cleans bitcoins for a cost of 10%. I send them 10 bitcoins, and they send 1 bitcoin to 9 different wallets (keeping the 10th as payment). That alone would allow you to still track it. But now add in thousands of oth…
How is it that this can't be prevented by the Bitcoin network? The network should be able to mark coins stolen and unusable...oh wait it can't. Because in order to do that you'd need a trusted third party to verify the coins were stolen defeating the purpose of a distributed ledger that doesn't require third party trust. Yet another shortcoming of trying to replicate cash.
Seems like a major issue. If these hacks keep happening thieves are going to own more bitcoin they the rest of the community.
How is it that this can't be prevented by the Bitcoin network? The network should be able to mark coins stolen and unusable...oh wait it can't. Because in order to do that you'd need a trusted third party to verify the coins were stolen defeating the purpose of a distributed ledger that doesn't require third party trust. Yet another shortcoming of trying to replicate cash.
Could the community as a whole black list a bitcoin address so they could at least not spend the money they stole? Are you able to track the history of who was a previous owner of the bitcoin? Seems like a major issue. If these hacks keep happening thieves are going to own more bitcoin they the rest of the community.
What really pisses me off is how it got handled by NiceHash: Alex Zvyozdny: Many of you already know that the site reddit spread information about the alleged hacking of our service. We hasten to assure everyone that your bitcoins are safe and sound. And we are the largest pool in the CIS countries are not going to close, but rather increase our presence in the regions. In connection with the increased number of thos…
Earlier quoted context omitted.
Could the community as a whole black list a bitcoin address so they could at least not spend the money they stole? Are you able to track the history of who was a previous owner of the bitcoin? Seems like a major issue. If these hacks keep happening thieves are going to own more bitcoin they the rest of the community.
That would require appending to the consensus rules, which is effectively a hard fork.