Bitcoin has Flaws and Weaknesses Says Edward Snowden


Bitcoin has Flaws and Weaknesses Says Edward Snowden

Edward Snowden, former CIA employee and NSA contractor Edward Snowden, who has been running away from the American agencies for a couple of years now, says that Bitcoin has flaws and weaknesses. Interestingly, his supporters founded a fund raising organization that also accepts Bitcoin and collected handsome amount from donations.

His views came to public as he gave an interview to the Internet Engineering Task Force 93 where he admitted that the 51% attack concept, and stated that the Bitcoin network could be vulnerable to attacks and manipulation if “a pool has over 50% of the computing power to demonstrate adequate proof of work to add entries to the blockchain ledger.

Snowden is of the view that the Bitcoin by itself is flawed as the protocol has a lot of weaknesses and transaction sides and a lot of weaknesses that structurally make it vulnerable to people who are trying to own 50 percent of the network and so on and so forth. At the same time he admitted that these are not being discussed by the stakeholders.

Interestingly, Snowden also clarifies that there are some very interesting things about Bitcoin’s principles that particularly when combined with that idea like before of tokenization, of concepts like proof of work make sense. At the same time he insisted that focusing too much on Bitcoin is a mistake.

He was quoted saying:

The real solution is again, how do we get to a point where you don’t have to have a direct link between your identity all of the time? You have personas. You have tokens that authenticate each person and when you want to be able to interact with people as your persona in your true name, you can do so.

Snowden also discussed Other Technologies like Tor

Discussing Bitcoin, Snowden also touched upon some other related issues; for instance, he suggested a similar concept of Tor, where Bitcoin transactions are “tumbled” and changed once it is sent. Darksend mixes a pool of transactions and its addresses randomly, making the transactions completely anonymous and untraceable.

The anonymity allows users to have multiple “persona” – “a common persona, an anonymous persona, a shared persona” to send transactions that cannot be tracked by the NSA or any government agencies. Nonetheless, using these technologies privacy can be protected to the great extent against the all pervasive government and its agencies.

To contact the reporter of this story: Deepak Tiwari at