Bitrefill’s John Carvalho lashes out at Bittrex over VeriBlock’s addition on its platform

John Carvalho, the CCO of Bitrefill, called out Bittrex exchange on VeriBlock’s addition and posted on a social networking site that the Seattle-based Bittrex was “selling a trap to people”.

Carvalho tweeted,

“Honestly, @BittrexExchange should be ashamed of themselves for exploiting ignorant speculators by offering this retarded tech. Learn how Bitcoin works. You are scamming people, whether you realize it or not.”

The latest criticism directed towards the US-based crypto exchange was in response to an article on Medium by a user named Hjalmar Peters, which asserted that VeriBlock’s claim to be a decentralized, transparent, trustless and permissionless [DTTP] was not true.

According to the user, the VeriBlock team states that the node software, which is currently a closed source, intends to transform it into open source, but has not yet revealed the exact date, Peters cited.

Besides, VeriBlock rides on Bitcoin’s blockchain to acquire the latter’s security and “hopes” the altcoin to latch on the VBK blockchain in the future and acquire Bitcoin’s security themselves, commented the user.

His argument is that the coin uses a “piggybacking” method, which means it rides on the Bitcoin blockchain via Proof-of-Proof or PoP publications, which are essentially BTC transactions that endorse a VBK block. He said,

“They are created by PoP miners each time a new VBK block is found. The more PoP publications reference a given VBK block, and the earlier these appear on the BTC blockchain, the deeper is the referenced VBK block anchored. Should there be a fork [i.e. two competing chains] on the VBK network, then the chain whose first few blocks [counted from the forking point] are anchored deeper becomes the winning chain.”

VeriBlock uses Proof-of-Proof [PoP] consensus mechanism, which according to the user, is prone to attacks. Peter claimed that the VBK whitepaper had irregularities. One example cited in the article was a mechanism called “balance-based voting” against certain contentious chains mentioned in the whitepaper, but doesn’t dwell deeper into the subject. Peters further opined that the real-world VBK software most likely contained a certain centralized protection mechanism that was not revealed on its whitepaper.

Peters also attributed the success behind the VeriBlock’s recent IEO to the brand awareness created on the BTC blockchain and a list of influential individuals serving as VeriBlock’s advisors.

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