Main navigation

Bitcoin (BTC) Network at Risk Due to High Centralization: Report

Advertisement
Sat, 1/02/2020 - 12:08
Bitcoin (BTC) Network at Risk Due to High Centralization: Report
Cover image via 123rf.com
Read U.TODAY on
Google News
Contents
Advertisement

A new TokenAnalyst report sheds light on the grim state of the Bitcoin (BTC) network. 

The London-based blockchain analytics startup found out that only five China-based mining pools control a staggering 49.9 percent of the coin's total hashing power. 

Related

Bitcoin's China problem

The fact that China, the country with a very authoritarian government, holds sway over Bitcoin is nothing new. As of December 2019, it was responsible for 66 percent of the total hashrate after its share increased by about six percent in just six months. 

This is an alarming trend for those who strongly believe that Bitcoin is a decentralized digital currency. 

However, the problem goes deeper than that — if these five entities were to merge into one, they could perform a 51 percent attack, thus forcing reorganization in the Bitcoin blockchain.

Related

Are these concerns overblown? 

While it's hard to argue with statistics, Chinese mining pools might not be that big of a threat to Bitcoin. It is important to note that one shouldn't confuse mining pools with actual miners. If miners decide to wreak havoc with the network, their blocks will be rejected by nodes

On top of that all, trying to attack the Bitcoin network is very expensive. Messari recently estimated that it would cost around $21 mln to attack the Bitcoin network only for one day. 

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD