Trust within the Bitcoin Latinum Blockchain
In January 2009, the genesis block (block number 0) of Bitcoin, the world’s first cryptocurrency, was mined. Blockchain allows people to exchange information on the internet for the first time without a central party, using a set of protocols to prevent hacking, spying, or double-spending of cryptocurrency.
As Bitcoin scaled, so did the financial incentives to exploit it, and as such, problems began to reveal themselves. Changes to Bitcoin are approved by a majority of the community, but if at least 51% of the node validator community were to band together, there would be nothing stopping their control of the remaining 49%. What is concerning about Bitcoin in particular is that 4 mining pools manage 55% of the computing power, meaning that should these pools collude, they have the capability to manipulate the blockchain. Satoshi Nakamoto, the anonymous founder of Bitcoin, argued that a 51% attack is not in the best interest of the 51% because it would destroy the token’s credibility, something that miners have worked long and hard to build. Although unlikely, such a destructive attack would not be ideal for a Bitcoin-led financial future. With current security risks, the governance of blockchains are not yet 100% trustworthy.
Using the same protocols of Bitcoin up to this point, Bitcoin Latinum (LTNM) forks the existing blockchain to create faster transaction speeds, heightened security, increased transparency and governance, and a more sustainable blockchain. For the purposes of this article, Latinum’s updated governance protocol brings for greater trust to the blockchain.
Trust in governance is first achieved through enhanced security protocols. Numerous security advantages are integrated into LTNM to boost its credibility over both Bitcoin and centralized IT security. Foremost, Latinum mandates a strict approval process to certify select nodes to validate transactions. Still decentralized, the approval process decreases the chances of a 51% attack on the blockchain. To attack a ledger, a hacker would need to attack every node simultaneously, a difficult task to say the least. In the future, corporations will experiment with the security advantages of blockchain ledgers and be further incentivized to use LTNM for its augmented security features.
Greater security allows for more trusted governance on the Latinum blockchain. Latinum’s next-generation governance protocol brings greater transparency and reliability to the network. Using a randomized proof of stake consensus mechanism with a built-in representative governance model, trust is reinforced by the approved node validators. Restricted network access for node approval ensures that approved nodes will work together collaboratively.
Read our story to get an insight into our goals and aspirations for Bitcoin Latinum.