{"id":45885,"date":"2020-03-06T07:52:48","date_gmt":"2020-03-06T07:52:48","guid":{"rendered":"https:\/\/www2019.dash.org\/?p=45885"},"modified":"2021-09-18T11:42:24","modified_gmt":"2021-09-18T11:42:24","slug":"the-steem-takeover-and-the","status":"publish","type":"post","link":"https:\/\/www.dash.org\/news\/the-steem-takeover-and-the\/","title":{"rendered":"The Steem Takeover and the coming Proof-of-Stake Crises (OPed by Joel Valenzuela)"},"content":{"rendered":"

The\u00a0Steem<\/a>\u00a0blockchain reportedly\u00a0experienced<\/a>\u00a0a troubling episode recently, whereby the blockchain\u2019s entire governance system was disturbed. Tron founder\u00a0Justin Sun<\/a>, new owner of the Steemit social network based on the Steem token, appears to have successfully\u00a0executed<\/a>\u00a0a takeover of Steem by leveraging not only tokens directly controlled, but also tokens held on several major exchanges, in order to vote out the previous delegates (Steem uses a delegated\u00a0proof-of-stake<\/a>\u00a0system) and install new ones. This means that customers of these exchanges likely had their funds used without their consent in this blockchain power struggle.<\/p>\n

While it was an unfortunate episode and certainly fascinating to watch play out, the Steem takeover may have just outlined a critical vulnerability in all proof-of-stake cryptocurrencies \u2014 exchanges.<\/p>\n

What this means for proof-of-stake<\/h2>\n

What does this mean for proof-of-stake consensus models? In short: they may be more vulnerable than advertised. Proof-of-stake distributes power to holders of the currency, with ownership over more tokens equaling more control over the network. This essentially makes a well-distributed coin supply a necessary component of its security model, with fewer parties owning a significant portion of the supply and no single party able to control and attack the network without massive expense. However, this model assumes holders are using their tokens as they were intended to be used \u2014 that is, without trusting third parties with their funds. Unfortunately, this ………….<\/p>\n

\n

Please read Full Story at:<\/p>\n","protected":false},"excerpt":{"rendered":"The\u00a0Steem\u00a0blockchain reportedly\u00a0experienced\u00a0a troubling episode recently, whereby the blockchain\u2019s entire governance system was disturbed. Tron founder\u00a0Justin Sun, new owner of the Steemit social network based on the Steem token, appears to have successfully\u00a0executed\u00a0a takeover of Steem by leveraging not only tokens directly controlled, but also tokens held on several major exchanges, in order to vote out…","protected":false},"author":5,"featured_media":45886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[216],"tags":[],"acf":[],"yoast_head":"\nThe Steem Takeover and the coming Proof-of-Stake Crises (OPed by Joel Valenzuela) - Dash<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dash.org\/news\/the-steem-takeover-and-the\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Steem Takeover and the coming Proof-of-Stake Crises (OPed by Joel Valenzuela) - Dash\" \/>\n<meta property=\"og:description\" content=\"The\u00a0Steem\u00a0blockchain reportedly\u00a0experienced\u00a0a troubling episode recently, whereby the blockchain\u2019s entire governance system was disturbed. 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