Bitcoin's network faces potential vulnerability from hosting providers
New research shows that Bitcoin could survive losing 72% of the submarine cables that carry internet traffic across oceans without shutting down. However, the same study found that a coordinated attack on just five major hosting providers could cripple the entire Bitcoin network. Hosting providers are companies that run the computers keeping Bitcoin running. This reveals an interesting paradox: Bitcoin is extremely resilient to widespread outages but vulnerable to targeted attacks on specific chokepoints. The research highlights a gap between Bitcoin's theoretical resilience and its practical dependencies. Understanding these vulnerabilities is important for anyone betting long-term on Bitcoin's survival.
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Beginners should understand that Bitcoin is not completely decentralized in practice—it relies on some centralized services. While Bitcoin has strong safeguards against broad internet failures, targeted attacks on key infrastructure could pose risks to the network's operation.