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Leicester

๐Ÿ‘ค Speaker
1280 total appearances
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Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

As with any network, if your underlying servers, your routers, your computers, if you have a malicious actor powering this thing, it affects the network and drops its security and creates vulnerabilities.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

Now with something like blockchain,

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

It's not like it could infect your computer or any of that because it's not running locally on your device, generally speaking.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

But what it could do is it could compromise the value of your assets.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

If you connect your, your wallet to a D app that's been compromised, or that is attached to a node that is compromised or is attached itself to the chain, but the chain has been compromised at a point, then your assets could be drained.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

So depending on where that compromise is happening,

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

Your wallet could be affected.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

You, the physical, you would not be, but your assets, your stored assets could be recently.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

I talked about Monero and the 51% attack.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

The 51% attack is a type of Sybil attack.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

It simply means that an operator, a node operator is able to control at least 51% or more of the entirety of the network.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

And when that happens,

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

It allows them to essentially control what's going on.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

Now, in that case, they weren't doing it for malicious reasons.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

They were doing it to use the value of Monero to enrich their own token product.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

And they tried to Monero and said, we're just showing you we can do this because you're compromised, right?

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

Kind of like an ethical hacker, but they were trying to enrich themselves at the same time because it allowed them to influence the price of Monero by doing that.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

So that's a form of civil attack.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

That's easy to understand how many node operators do single actors control, or you have a bunch of malicious actors in collusion with each other to do the same influence.

Crypto Talk Radio: Basic Cryptonomics
Leicester on Sybil Attacks in Crypto

This is the same negative impact.