The Bitcoin Standard: The Decentralized Alternative to Central Banking

by Saifedean Ammous

Hardware Backdoors Another possibility for disrupting or destroying the Bitcoin network is through corrupting hardware that runs bitcoin software to be accessible by outside parties. Nodes that perform mining could, for example, be fitted with undetectable malware that allows outsiders to commandeer the hardware. This equipment could then be deactivated or remotely controlled at a time when a 51% attack is launched. Another example would be through spying technology installed on user computers allowing access to users' bitcoins by accessing their private keys. Such attacks on a mass scale could severely undermine confidence in Bitcoin as an asset and demand for it. Both types of attack are feasible technically, and unlike the previous two kinds of attacks, they do not have to succeed entirely in order to create enough confusion to hurt Bitcoin's reputation and demand. Such an attack on mining equipment is more likely to succeed given that there are only a few manufacturers of mining equipment, and this constitutes one of Bitcoin's most critical points of failure. However, as Bitcoin mining is growing, it is likely to start attracting more hardware makers to manufacture its equipment, which would reduce the disastrous impact on the network from the compromise of one manufacturer's operations.