An interesting event is taking place right now in the NXT community. A theft of ~50 million NXT has been stolen from BTER, which is a well known trading platform for many crypto currencies.

The question is if the forgers, which is NXT’s equivalence of mining, will reverse the block making this transaction or not and what implications this has for the future of decentralized currencies.

Is this a strength or a weakness using proof-of-stake for reversing transactions? Who will be the judge or facilitator for a fraudulent transaction? This is for sure a legal question all crypto-currencies face.

The Bitcoin community has already shown it will not take any action against theft by reversing the blockchain, still it’s possible if the miners agreed to do it.

Let’s see how this evolves..