Re:BitFinex down due to Bitcoin security breach - 120k BTC s...
by lpage on Wednesday August 03, 2016 @03:32AM
(#12216283)
Comedy gold indeed.
> This is supposed to be impossible because it is incentivize-incompatible
Enter the wonderful world of coco values and side payments in game theory. Incentive compatibility and strategyproofness arguments break down when parties are compensated (implicitly or explicitly) out-of-band. That's not always a bad thing - it can lead to more efficient, utility maximizing equilibria. That said, under the status quo, we're trading one flavor of centralization (monetary policy) for another (core committers and mining pools).
> This is supposed to be impossible because it is incentivize-incompatible
Enter the wonderful world of coco values and side payments in game theory. Incentive compatibility and strategyproofness arguments break down when parties are compensated (implicitly or explicitly) out-of-band. That's not always a bad thing - it can lead to more efficient, utility maximizing equilibria. That said, under the status quo, we're trading one flavor of centralization (monetary policy) for another (core committers and mining pools).