How does the Dynamic Peg affect spending? What if there is a reorganization?


#1

How does the Dynamic Peg affect spending? What if there is a reorganization?

In Bitcoin, reorganization can retroactively invalidate timelocked transactions, and can also be used to double spend on any network during a 51% attack event. This is why all cryptocurrencies wait for a set number of confirmations to secure a payment. In order to avoid discrepancies in liquidity during payments, the wallet initiates buffer zones 10 blocks before and after each voting session. In most circumstances, a change in rate can be predicted in advance, as votes are easily trackable on the blockchain.

Questions, comments, concerns? Please post them in the comments below!