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Fact: Steemit Sybil Attacked the Steem Blockchain by lukestokes

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· @lukestokes ·
$78.38
Fact: Steemit Sybil Attacked the Steem Blockchain
I've been having a number of Twitter conversations today about the Tron/Steemit/Steem drama. There are a lot of people very concerned about this situation and rightfully so. On February 15th, I tweeted this:

<a href="https://twitter.com/lukestokes/status/1228701808614428680">![image.png](https://files.steempeak.com/file/steempeak/lukestokes/sFwwTuji-image.png)</a>

If you've been paying attention the last few weeks, things have gotten really interesting, bringing a lot of media attention such as:

* <a href="https://www.coindesk.com/why-crypto-should-care-about-justin-suns-steem-drama">Why Crypto Should Care About Justin Sun’s Steem Drama</a> March 2nd

* <a href="https://cointelegraph.com/news/steem-community-stands-its-ground-amid-tron-takeover">Steem Community Stands Its Ground Amid Tron Takeover</a> March 6th

People are emotionally connected to this story because it may impact the way their blockchain property is defined and secured. For a really interesting discussion on property (and this whole Steem debate), check out this conversation:

<iframe width="560" height="315" src="https://www.youtube.com/embed/We2Ryecxt-4" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

The second part of the conversation was really interesting because it challenged some of my perspetives on property, mainly that if it's not rivalrous, is it really property? I also appreciated the distinction between value and property. Many, I think, are more concerned with their value being negatively impacted than they are about their property.

There are many sides to the current discussion. Some see the actions of the community consensus witnesses as "theft" because they (temporarily) froze tokens they did not own according to non-blockchain legal frameworks. They did so with support of token holders as demonstrated on chain by the one witness who ran v0.22.3 (which also disabled voting rights, but didn't hinder transfers) being voted out of consensus. They responded <a href="https://steempeak.com/steem/@timcliff/statement-0-22-5">here</a>. Some argue there is a legal case to be made about the expectations set on that property and there may even be a fraud cause in the future between Ned and Justin for selling something without full disclosure about the commitments associated with that stake.

I personally think this won't go anywhere because, as has been pointed out on Twitter, the Steemit about page contradicts whatever things Ned said publicly about the Steemit stake (and, in a sense, even the 2017 roadmap statements).

<a href="https://twitter.com/BlazingMonolith/status/1236295442352177153">![image.png](https://files.steempeak.com/file/steempeak/lukestokes/lumoPudQ-image.png)</a>

But then there's also this... so... yeah.

<a href="https://twitter.com/subbyjr/status/1236316386747650050">![image.png](https://files.steempeak.com/file/steempeak/lukestokes/Ehl07TXC-image.png)</a>

We can go back and forth on this, but ultimately it comes down to the rules on a blockchain are defined by the consensus algorithm of that blockchain. If those rules are followed and those in consensus control are asked to take action to protect the chain, that's in line with the rules. Not everyone may agree, but the rules are still the rules.

The valid chain is based off DPoS consensus. The ninja-mined stake has a complicated past (witnesses were asked by some to fork it off the chain last year, something I will not support). v22.2 temporarily froze the issuer tokens (it was <a href="https://steempeak.com/softfork222/@lukestokes/what-is-property-is-it-defined-by-consensus">a difficult decision</a>), hoping to communicate with the new owner who had not talked to the community yet (but did make statements, some saw as threats, about the future of their token and blockchain). The response from the new owner was immediate and positive, saying a community town hall would take place. Unfortunately that meeting was pushed far enough into the future to coordinate with exchanges to vote with customer stake to take over and centralize the chain with 20 sock puppets.

Exchanges voting with customer funds was always a theoretical threat to DPoS (HF14 on Steem introduced decline_voting_rights as a way to help with these things, but that's back when the power down was two years, now it's 13 weeks). Now it's a historical reality. 

The rules (currently, until they are updated to remove this threat) also allow custodial holdings to vote without the intentions of the "owners" (I use quotes because not your key, not your token) taken into account.

What really happened here and what concerns me most is a <a href="https://en.wikipedia.org/wiki/Sybil_attack">Sybil Attack</a>.

> In a Sybil attack, the attacker subverts the reputation system of a network service by creating a large number of pseudonymous identities and uses them to gain a disproportionately large influence. It is named after the subject of the book Sybil, a case study of a woman diagnosed with dissociative identity disorder.

If you're not familiar with Sybil attacks and why they are so dangerous to <a href="https://en.wikipedia.org/wiki/Byzantine_fault">Byzantine Fault</a> Tolerant systems like blockchains, I suggest being less vocal on Twitter until you do.

# Steem was Sybil attacked.

**Steemit and Justin Sun did it.**

Are you okay with that?

---

*(P.S. We have friends staying with us this weekend who planned their trip months in advance. I will not neglect their friendship. I may not be super available this weekend.)*
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 350 others
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vote details (414)
@alexs1320 ·
Who is more stupid:

A girl with Dawn Syndrome or Extreme Communists who don't understand basic economy?



![image.png](https://cdn.steemitimages.com/DQmRT1f83tUWmLb7p8b5z5Rb6oHYtyMEPALTcxw8npeYkZm/image.png)

P.S. PARTY COMMISARS, DO FLAG YOURSELVES
👍  
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vote details (1)
@ammonite ·
Whatever happens we really need to find a way to stop this kind of thing happening again. Nobody should be able to come in and buy the network.
My stake is quite small but my social stake is quite large having been here for nearly three years.
I would love to see a way that this is taken into account in the Witness votes. Something like a REP system that works and a way to use that to multiply my vote strength.
A new account, a week or two old should not be able to have such power when they don't have social skin in the game.
I wrote more about this in my latest post but it fell down the back of the Steem sofa.
(I already made this comment on another post but I think is also belongs here)
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@lukestokes ·
Yes, some ideas are being thought through by very experienced DPoS developers like @blocktrades.
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@sarariflo · (edited)
- No one should be able to buy this network 
- Having a network that is built around a token that can be purchased 

Choose one.
👍  
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vote details (1)
@ammonite ·
I think we can choose both if it is only one way to play the game.
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@arcange ·
Congratulations @lukestokes!
Your post was mentioned in the [Steem Hit Parade](/hit-parade/@arcange/daily-hit-parade-20200307) in the following categories:

* Comments - Ranked 10 with 50 comments
* Pending payout - Ranked 5 with $ 66,03
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@birdinc ·
I wouldn't call it a true DDOS-style sybil attack.  It's more a stake weighted-sybil attack. 
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@heimindanger ·
It's not a sybil attack at all... Just witnesses using fancy words and the crowd cheering for them.
👍  ,
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vote details (2)
@birdinc ·
Yeah. I thought sybil just meant lots of fake accounts or an attack vector along those lines.
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@lukestokes ·
It involved pseudonymous identities representing 20 individual witnesses when in actuality they were all controlled by one person. That, to me, is clearly and irrefutably a Sybil attack. And yes, it was definitely stake-based as that's how DPoS works.
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@cloudspyder ·
The attack came from the inside out. Using the community fund to attacked the community core. However, the community managed to hold the ground. 
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@farizal ·
I resteemd/reblogged this post so more people can join the conversation and move forward with solutions. I can't comment more because the previous replies were so good. ☮️✌️
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@fitzgibbon ·
Me, OK with Justin executing a coup d'état? No. But he doesn't listen to me.

Is CZ ok with this attack by Justin?
👍  
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vote details (1)
@gorans ·
Cool
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@heimindanger ·
Jesus god. Why can't you actually look up the words you use before getting a popular article out and sharing it on twitter?

This is NOT a sybil attack. STEEM is sybil resistant, else noganoo would be the overlord since a long time.
👍  ,
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vote details (2)
@lukestokes ·
> In a Sybil attack, the attacker subverts the reputation system of a network service by creating a large number of pseudonymous identities and uses them to gain a disproportionately large influence. It is named after the subject of the book Sybil, a case study of a woman diagnosed with dissociative identity disorder.

Are you claiming the 20 witnesses pushed into consensus by a single individual were not "pseudonymous identities" but known, trusted members of the community voluntarily put into a position of leadership by the community according to the intended design of DPoS?

STEEM, clearly, is not Sybil resistant enough. This *was* a Sybil attack. Pretending otherwise is not defensible. If noganoo had enough stake (or enough influence to get exchanges to do what they did), he could attack the chain through this Sybil strategy just the same.
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@heimindanger ·
Creating 20 new accounts didn't give them more influence in the network. Their stake was already there. A sybil attack is when creating more and more accounts will give you more and more power in the network. Imagine a 1 acc = 1 vote democratic system, this wouldn't be sybil resistant, as creating more and more accounts would lead to you having more and more voting power. On steem everything is based on stake alone, creating more accounts doesn't give you any advantage whatsoever.

There's no more or less sybil resistant, it's binary, black or white.

Hope you see my point. I overall agree with your article though, I just think a single word you used is wrong :) What happened is more of a bribe attack (justin bribed exchanges to vote for him to control the network)
👍  
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vote details (1)
@hotbit ·
$0.21
Steem is designed for an easy 1/3 + 1 attack. What is more, it's designed through the **multivote** rule to be 100% controlled by a very small number of top SP holders. 

I've asked in comments several witnesses about opinion. If I'm not mistaken, none did. 

@lukestokes Are you OK with the **30 for 1 centralization rule**?  https://steempeak.com/palnet/@hotbit/steem-blockchain-multivote-security-vulnerability

Why no *community witness* had the courage to express his support or the lack of thereof for the centralization multivote rule?
👍  , , , , , ,
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vote details (7)
@joeyarnoldvn ·
Is that design more aligned to a republic or democracy type system?
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@lukestokes ·
Solutions to prevent this will be explored. I'm not yet convinced 1t1v (one token, one vote) is the best approach, but it may be an improvement.
👍  
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vote details (1)
@hotbit ·
As shown in my article, current voting rules cause centralization and recently allowed exchanges to set up all 20 top witnesses. 

Interesting, that *community witnesses* talk a lot about decentralization but avoid any discussion about the power centralizing voting rule.
[Another similar post](https://steempeak.com/hive-111111/@vikisecrets/7-ways-to-fix-steem-s-delegated-proof-of-stake-dpos-system) didn't get much traction among the *big* guys either or didn't get upvotes from the big guys either.
👍  
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vote details (1)
@skepticology ·
A hard cap limit on mvests witness influence per account in combination with limited number of votes or 1t1v is an improvement.
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@onthewayout · (edited)
> Steem is designed for an easy 1/3 + 1 attack. 

That is very innacurate...1/3 +1 only gives the "attacker" the ability to block a hardfork but you cannot takeover consensus...for that you need 2/3 +1.

> What is more, it's designed through the multivote rule to be 100% controlled by a very small number of top SP holders.

It designed for the majority stake to dictate consensus. The number of accounts holding the SP is irrelevant to the consensus logic. This favors centralization.

The real threat is voter apathy. Before this whole incident started only about 28% of the stake was voting (it might have been less so I might be wrong on the exact number). With that level of participation and combined with the 30 vote rule you only need 29% of the stake to take over the witness positions.

Mix in some colusion with exchanges and you have exposed the DPOS vulnerabilities.

The solution seems obvious...limit the number of seats that an account can vote on and incentivize voting (maybe direct a portion of the inflation for that). Although limiting the amount of positions introduces other risks (such as the blockchain forking if no one can control consensus).
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@hotbit ·
>That is very innacurate...1/3 +1 only gives the "attacker" ...

https://steempeak.com/steemtron/@lauch3d/there-is-no-51-attack-in-steem

Good thing we can agree on reducing the number of witness candidates a vote can be cast on. Most importantly, should be 1SP = 1 vote. One can vote on 5 candidates, but each would get only 0.2SP worth of votes.
30 is too many, no average person can make an educated decision about so many candidates. See my post for the details.
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@valued-customer · (edited)
$0.21
>"...for that you need 2/3 +1..."

No.  All you need is 51% of stake voting.  That is what determines how many witnesses control consensus.

Worse, the weight of stake is currently subject to vast multiplication via the 30 votes availed stakeholders.  To wit:

User A has 1M Steem.  Casting 30 witness votes worth 1M Steem each gives them 30M Steem influence on governance.  User B has 100 Steem.  Casting 30 witness votes gives them 3000 Steem influence on governance.

The difference between the stake held by these users is 999,900 Steem.  The difference between their influence on governance is 29,997,000 Steem.  This multiplication of stake weight dramatically centralizes influence on governance, which consensus witnesses have failed to previously resolve.  

Clearly, this is a problem, and strongly lends support to accusations of corruption of Steem governance.  It's long past time for this deception and centralization of Steem governance to end - possibly too late to save the Steem community from the Sybil attack it has promoted.  Other limitations on stake influence on governance is necessary, but accurate weighting of stake influencing governance is absolutely a necessary component of securing Steem from Sybil attacks.

I am provided estimates of Tron's present stake of ~100M Steem.  This theoretically enables Tron to deploy 3B Steem influence on governance.  That is utterly untenable now, or ever.
👍  , , ,
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vote details (4)
@phgnomo ·
this.

Maybe witness will finally understand this after the shitshow is over and finally securing the chain as intended.

Maybe not...
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@lukestokes ·
Are there other high value DPoS chains doing 1t1v?

I'm open to pushing for changes, for sure, but please also recognize exchanges voting with customer stake to Sybil attack a chain is unprecedented. It was always a theoretical risk, but was previously considered low probability.
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@ura-soul ·
The nature of the issue of with imbalance caused by the witness voting setup has been discussed publicly ad nauseum in the past by me (a witness) and numerous other people. It is true that I personally have never heard some of the top witnesses comment on it, but then I haven't heard some of them comment on much at all.
👍  ,
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vote details (2)
@joanstewart ·
Above my "pay-grade", not a coder. 

Possible interesting reading on matter at hand:  https://hackernoon.com/notes-on-blockchain-governance-ob65o3pod
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@joeyarnoldvn ·
The good news is that something like this brings us together to vote and to fight for a thing that we share a bond over, Steem.
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@luca1777 ·
No, Sybil Attack ain't cool, but a clear situation/case is something else...
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@martie7 ·
$0.07
Each user must decide for himself in what proportion he makes to divide the votes for witnesses. He can vote for only one or break own vote into 30 parts - that's his personal right. I think the current DPOS system is far from ideal and pretty unfair.
👍  
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vote details (1)
@lukestokes ·
How do you suggest we improve it?
👍  
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vote details (1)
@gamer00 ·
I think he listed some suggestions in the beginning of his comment.
👍  
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vote details (1)
@john371911 ·
$0.22
As they wrote, change to one account only gets one vote; or votes correspond to their original SP, and one can vote to one single witness or divide it into any proportion as one like, then votes to any number of witness.
👍  , ,
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vote details (3)
@martie7 ·
[Let's change 1SP 30 votes (current) to 1SP 1vote](https://steemit.com/hive-101145/@glory7/let-s-change-1sp-30-votes-current-to-1sp-1vote)
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@phgnomo ·
$0.03
Sorry @lukestokes but what is happening is a consequence of the witnessess actions.

Yes, Justin Sun did a shitty move, and it was an attack.

But this kind of attack was possible because you witnessess ignored the problem for a long time.

And you can't say that this was never brought up. But witnessess attitude were "Nah... It's fine"

Isn't it time for the witnessess to also be honest and own their own mistakes?

You got the community (including me) backing you guys up in this situation, but after this crisis end, well....
👍  ,
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vote details (2)
@lukestokes ·
I don't think witnesses thought everything was fine because last year some considered hard forking out the steemit stake which may have been a far worse fiasco than this. <a href="https://steemit.com/stopthepowerdown/@lukestokes/is-steem-centrally-controlled">I did not support it.</a>

But you are correct. This happened on our watch. We took what action we could to protect the chain and something unprecedented happened where exchanges powered up and voted in sock puppets in a Sybil attack. That can happen right now to just about any DPoS chain. Hopefully we can improve DPoS governance to prevent this in the future.

What do you think we should have done instead? Forked out the stake? Done nothing to counter the statements made by Tron about moving everything over to their blockchain without even consulting the witnesses or the community?

I see a lot of complaining lately, but what would you have done if you were a witness? What would have been a better course of action to protect the chain?

If you say reach out and talk first, that's exactly what I tried to do. A mutual friend got me in touch with Justin (thought it took a few days). An email dialog started on Sun, Feb 23. He replied on Tue, Feb 25 saying Roy would reach out to me. I heard nothing for 7 days until I sent a follow up email, but by then the v0.22.2 softfork and v0.22.5 softfork and chain takeover were already done (along with the damage).

I would sincerely like to know what you think witnesses could have done better?
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@phgnomo ·
$1.03
> I don't think witnesses thought everything was fine because last year some considered hard forking out the steemit stake which may have been a far worse fiasco than this.

The issue goes beyond freezing or not freezing Steemit Inc. Stake.

I understand (and agree) why the HF 22.2 was implemented, and why it was needed, but at the end of the day, it was a patch, not a solution to the underlying problem.

The underlying problem isn't if Steemit Inc. should vote or not. 

It is that no matter how big a stake is, it shouldn't be possible for that stake be able to push the top 20 witnessess. And 30 votes per stake is a big factor in this.

>  That can happen right now to just about any DPoS chain. Hopefully we can improve DPoS governance to prevent this in the future.

True, and you are one of the few witnessess that actually positioned in this situation as 'this was a witnessess mistake'. 

Most of them didn't. 

Most are just playing the blaming game with Justin, looking to prove that he is the 'evil' instead of moving around a solution to this problem.

And while this happens, users and investors are put in a position of having no idea what to do.

Should i stay, should i go, should i sell, should i support the votes, etc etc etc.... And this is bad. Bad right now and bad for the future.

Sure, we can always fork out and start a new chain, but tell me, how many of Steem sister chains have any relevance?

> What do you think we should have done instead? Forked out the stake? Done nothing to counter the statements made by Tron about moving everything over to their blockchain without even consulting the witnesses or the community?

Never said that, and again, i understand and agree with what was done by the witnessess in the situation they had. Unfortunately, the outcome was unexpected. 

But at the end of the day, its witnessess job to figure out a way of this mess.

> I see a lot of complaining lately, but what would you have done if you were a witness? What would have been a better course of action to protect the chain?

Not interested (and never was) in becoming a witness, specially because my field of knowledge isn't blockchain technology, so i wouldn't be much of a help.

But one important thing that someone in a leadership postion (as witnessess are) must alway do is to listen, specially to those that have a different opinion and perspective.

As you can see on the @hotbit, @onwayout, @valued-costumer discussions below, there is a lot of possible ways to study to improve the blockchain safety.

I have been on Steem for almost 4 years now, and everytime i saw a 'normal' user tried to reach witnessess with any kind of subject, witnessess position were more inclined to 'you dont know anything, we know it all, we ignore your opinion'

> I would sincerely like to know what you think witnesses could have done better?

Not much difference. But right now, they should suck it up, admit they failed, and move to a productive solution, instead of trying to prove who is 'right' in this situation.
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vote details (5)
@poshbot ·
https://twitter.com/lukestokes/status/1360646170952007682
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@sarariflo ·
I don´t understand why people are upset, when exchanges use customers stake for voting. Everyone in the crypto-community knows the drill: NOT YOUR KEY = NOT YOUR COINS. So why would anyone who cares about votings in the commuity leave their stack on an exchange. 
And the people who did leave it on an exchange DID their vote. They voted for not really taking care what happens with their stake. Anyone should simply stop whining.
👍  
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@sgt-dan ·
Thank you for taking the time to explain these things. Have a wonderful time with your friends that are visiting. I personally would love to be in Puerto Rico right now. It is cold up here in Pennsylvania!
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@lukestokes ·
We had a beautiful time at Charco El Hippie today. :)

Stay warm, Sgt. :)
👍  
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vote details (1)
@skytrex ·
I'll guess, what should be on the table is...
Q: should exchanges have the ability to power up Steem or not?
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@lukestokes ·
That's certainly part of what is being discussed to prevent this from happening again in the future.
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@revo ·
If you stop them, couldn't they just transfer it to another account that can power up?
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@torrey.blog ·
No!!

> Steem was Sybil attacked.
> Steemit and Justin Sun did it.

> Are you okay with that?
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@valued-customer · (edited)
I have engaged with you in the past about this specific threat.  ~Two years ago you and other consensus witnesses did not act to prevent this threat when I came to understand and discuss it.  The responses I received generally took the form 'We do not agree' I got from @timcliff (or @smooth.  Maybe you.  Memory fails me atm).  

Here we are.  While that is in the past, I reckon it is important to acknowledge our failures and limitations in order to move forward based on real and factual data.

I don't care about acknowledgment, and am not here to say 'I told you so', but I do want to pierce the veil of nescience regarding foreknowledge.  The fact is that during the entire existence of Steem, the founder's stake has been a threat of Sybil attack, and if the threat of majority stake effecting a 51% attack is not utterly eliminated going forward, there is no possibility of Steem being secure from Sybil attacks.

We (the Steem community) may or may not survive this attack.  If we do, failing to prevent this vector for Sybil attacks will simply leave Steem as vulnerable to destruction as it has always been.  The next thing I want from witnesses, while ongoing attempts to secure the chain continue, is specific proposals to eliminate this threat.  You may find it useful to consider my recommendations from our prior discussions in order to reconsider their potential for success, or eliminate them from consideration as lacking potential to resolve the problem.

The witnesses that have been continually in the consensus for these last several years have profited (insofar as witnessing is profitable) from the centralizing multiplication of stake weight the current witness voting mechanism employs.  It is difficult to dismiss this fact considering the potential of witnesses to actually secure the blockchain going forward, but since it's an existential matter presently (as far as Steem is concerned) I expect it is necessary and possible.

Starting with 1 Steem = 1 witness vote (or 100% VP depletion without recharge for witness votes), and executing code preventing exchanges from voting on witnesses, how do we secure Steem from this threat?

Thanks!
👍  ,
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vote details (2)
@lukestokes ·
Are there other high value DPoS chains using 1t1v?

Major stake holders who think 1t1v is the correct way to secure the chain should announce they will only vote for witnesses who will push for this change to be made.
👍  
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vote details (1)
@onthewayout · (edited)
I think that before pushing for an solution we must examine the problem using a solid game theory model. Else we riak introducing other attack vectors. EDIT: having stake does not equal knowing what is the best solution.
👍  
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vote details (1)
@valued-customer ·
>"Are there other high value DPoS chains using 1t1v?"

I dunno.  I only care about Steem.  

While you're right in your next statement, that's about the kind of commitment we have been hearing from Roy Liu regarding powering down the exchanges and withdrawing Tron's puppet witnesses.

Do please differentiate yourself from Roy.  I'd like your forthright consideration, not lawyerspeak.
👍  
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