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Could a centralized body create a cryptocurrency and keep mining details secret?

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ltb4me

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Posts: 53

If they kept all details on mining secret, couldn't they theoretically mine with with only a few trusted partners and secure their own network? Since no one else knows how to attack their network because mining detail is not known, what is to stop someone like the federal reserve from doing this with the larger banks as their "trusted" partners?

I suppose that at that point it would be less secure because actual trust is required between the partners but otherwise it would be just as efficient as bitcoin right?

Posted on March 8, 2015 at 9:48 AM

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• Cryptonaut

  

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  Posts: 1944
  Location: Canada

  If your a centralized entity and want some sort of control over all of it, you don't really need mining. The point of mining is basically a decentralized arms race for who can produce the most processing power and increase the cost of attacking the network, so it doesn't really make much sense for major banks to be competing against eachother with ever increasing amounts of hardware. They could still use blockchains and something that works very similar to BTC, but instead of permission to write transactions to the blockchain being given to whoever just solved the mining algorithm, it would just go to specific pre-authorized users. Something like Delegated Proof of Stake (DPOS) I guess, except that you wouldnt be able to vote for delegates.

  Posted on March 8, 2015 at 11:18 AM
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