Bitcoin’s Network is Controlled by Five Companies in China. Should we worry?
Bitcoin has always had the feeling of being de-centralized since inception. However, according to a recent review, Bitcoin’s infrastructure is more centralized than ever before. This is raising eyebrows about the security and viability of Bitcoin as this is against the original thoughts of Satoshi Nakamoto in the original Bitcoin White Paper from 2008. (video about Satoshi vision).
Transactions on the Bitcoin network are processed by so-called miners. Bitcoin mining is done by specialized computers. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).
As competition has increased, many of the smaller players have became unprofitable and ceased operating, while the larger operations have entered into various partnership agreements. As a result, five mining entities — all of them in China — control 49.9% of all computing power on the network. This is the highest concentration of mining power ever according to a new analysis from TokenAnalyst. Check out the video about this topic: Video
Here are the five mining entities that are available via BitDeer:
About BitDeer:
BitDeer is a platform providing with computing power sharing services to users around the world. It saves users from the complicated process of purchasing, installing, and hosting mining machines. You can enjoy the service with just one-click.
Different from other computing power sharing products on the market, BitDeer offers flexible service package with competitive price , as well as :
BitDeer platform‘s user benefits are more transparent thanks to real miner machines works in leading mining facilities; BitDeer connects to a designated mining pool at the user’s instructions, and mined digital currency is paid directly to the user’s chosen wallet address ; BitDeer provides combinations of long and short duration service with competitive pricing. Service on BitDeer is therefore more flexible and users needs are better met; BitDeer picks the finest mining equipment of first-class manufacture, and collaborates with the world’s leading mining pools, such as BTC.com and Antpool.BitDeer is committed to providing transparent, reliable, convenient and first-class computer powering sharing services to users around the world.
The issue is that a miner with more than 50% of hash power can potentially wreck havoc on the network, raising the likelihood of double-counted coins, stopped payments and stalled transactions.
“Once a consumer has paid BitDeer for a plan, they can assign that hashrate to any partnership mining pool,” TokenAnalyst said in the report released Friday. “Does it really make a difference anymore? What is to stop the entities merging into a single large entity that maintains a degree of separation” only by having separate addresses where they receive rewards.
Definitely some thoughts to ponder. Here is a video to review too: Video
Bitcoin’s main attraction for a lot of people has always been its lack of centralization and its lack of dependence on a particular government or central bank. However, in recent years, the bulk of trading has become controlled by just a handful of exchanges. Now network operations appear to have become highly centralized, too.
What do you think of this development? Share your comment in response section below. And learn more here: Video
In other Bitcoin & Cryptocurrency News:
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If you would like to learn more about Bitcoin, check out a review of Satoshi Nakamoto’s original Bitcoin White Paper back in 2008. This was the genesis of the crypto revolution: Video review of the White Paper
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Published at Mon, 03 Feb 2020 23:40:53 +0000
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