The Nakamoto consensus is a set of rules that is intended to define a trustless peer-to-peer electronical cash system that can solve a double-spending problem without financial institutions involvement. It fails to do so in some circumstances.
The main flaw of the Nakamoto consensus is that it assumes the possibility to rewrite the history of transactions in the past up to a potentially unlimited point of time, while in reality not all off-chain events can be reversed up to any point of time. The flaw is expressed in "The longest chain is always the right chain" paradigm which is the root of all 'stealth mining' attacks. The new paradigm "The longest chain is the right chain IF it does not suggests to reorganize more than X blocks of the already existing chain" must be applied in order to make these attacks impossible.
Another flaw of Nakamoto consensus is that it assumes that a node can trust itself. In reality on
