A few days ago, Mike Kelly asked me on Twitter (1) if reorganization attacks can lead to opportunistic double-spends and (2) if this poses a risk to Bitcoin. It’s a slightly complicated—but very interesting—question, so we will unpack it step by step.
Purge attacks seem like the kind of attack that works in theory and fails in practice simply because users want to preserve the value of their coins. We will fork out any systemic risk. https://t.co/nZ8HG9xKXb
In Lisbon, I mentioned that, during this type of attack, miners can steal almost 100% of "transacted BTC".
By that I mean, if 270,000 BTC changed hands (on layer 1) during the period of reorganization, then a 51% hashrate coalition can end up obtaining ~269,999 of this BTC. https://t.co/ZN5C8SIhjU