Bitcoin Mining Pools Continue to Face Tough Competition: Blockchain Research

News
Tue, 12/03/2019 - 16:07
article image
Alex Dovbnya
There is a cut-throat competition among the top Bitcoin mining pools, and Bitmain is no longer on the winning side
Bitcoin Mining Pools Continue to Face Tough Competition: Blockchain Research
Cover image via 123rf.com
Contents

Blockchain, one of the largest companies in the crypto space, has recently analyzed how the distribution of blocks has changed over time among the biggest mining pools. The graph shows that there is still some tough competition and no clear leader.

Bitcoin mining pools
image by blockchain.com

Related Mining Tech Giant Canaan Inc. Fails to Raise 25% of Initial IPO
Related
Mining Tech Giant Canaan Inc. Fails to Raise 25% of Initial IPO

Things change fast

BTC.com, which is owned by mining juggernaut Bitmain, ruled the roost during the previous year. However, its market share has dwindled its market share over the last couple of years. According to data provided by Blockchain, BTC.com is now responsible for only 15.5% of mined Bitcoin blocks.    

Its crown has been taken by upstart competitor Poolin, which ushered onto the crypto mining back in 2017 as a project started by former Bitmain employees. The pool's meteoric rise, however, only started in late 2018 and steadily continued throughout 2019. As of now, Poolin has a market share of 16.6%, and it's not far-fetched to assume that it could soon become a dominant force in the market.

F2Pool and AntPool take third and fourth places with 14.8 percent and 9.9 percent respectively. Notably, AntPool is the only pool whose market share has been pretty much consistent for the past two years. 

Related Bitcoin Expert Shares His Bullish Take on Sudden Mining Difficulty Drop
Related
Bitcoin Expert Shares His Bullish Take on Sudden Mining Difficulty Drop

It's good for Bitcoin 

Unknown pools that are currently responsible for 24.7 percent of all mined blocks are important because they make the Bitcoin network more decentralized. 

In the first half of 2018, Bitmain's pools (BTC.com, AntPool, and ViaBTC) became so powerful that they were close to controlling a whopping 51 percent of Bitcoin's hashrate, which could open the doors for a deliberate 51 percent attack to reorganize the blockchain.     

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.