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- VeriBlock piggybacks Bitcoin Network to solve the security features of altcoins.
- The consequences of these developments are not yet clear.
According to recent research published by Forbes Crypto, about 20% of all Bitcoin transactions are generated by a project called VeriBlock. It is developed on the basis of the Bitcoin blockchain with the aim of providing a safer alternative to existing cryptocurrency networks.
VeriBlock is based on the test concept (PoP) which functions as an additional consent mechanism for blockchains integrated with VeriBlock.
Basically, it allows minor altcoin projects to avoid security issues related to the low hash rate and a relatively low reward for mining. The low hash rate can lead to double expense issues and 51% of attacks, which is now happening with Ethereum Classic.
VeriBlock claims to improve the security of altcoins by incorporating their Bitcoin blockchain logs and allowing them to ride the huge hash rate of the Bitcoin network.
While the idea of making altcoins safer might seem tempting, one should remember that it is done at the expense of Bitcoin users. VeriBlock operations overload the network and make Bitcoin transfers more expensive. Considering that Bitcoin is a system without authorization where anyone is willing to pay can get his transactions in the blockchain, no one can prevent VeriBlock from doing what it is doing.
The actual consequences of this activity are not clear at this stage, even if the profitability of the project and its effect on the Bitcoin network deserve to be monitored in the months to come.
