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Bitcoin Cash: Single Mining Pool Controls 50% of Hashrate

TweetShare Bitcoin Cash mining centralization has reached a level where just one pool is controlling half of its hashrate, according to Coin Dance. The crypto statistics service found that BTC.TOP mining pool, a China-based private entity, took over as high as 50.2% of the entire Bitcoin Cash network at some point today. It contributed the…

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Bitcoin Cash mining centralization has reached a degree the place only one pool is controlling part of its hashrate, in step with Coin Dance.

The crypto statistics carrier discovered that BTC.TOP mining pool, a China-based non-public entity, took over as prime as 50.2% of all of the Bitcoin Cash community someday nowadays. It contributed the hashrate of 679 Peta-Hash in step with moment towards different primary competing swimming pools together with BTC.com (257 PH/s), ViaBTC (215 PH/s), AntPool (125 PH/s), and Bitcoin.com (187 PH/s).

SOURCE: COIN.DANCE

Bitcoin Cash and Centralization

The notable building up can have taken position because of variance however, on the identical time, it threatens the Bitcoin Cash community with a possible 51% assault situation. The Roger Ver-led blockchain mission has been criticized ahead of for failing a “stress test,” performed on the behest of an nameless developer(s) referred to as Bitpico. Evidence confirmed that 98% of all the Bitcoin Cash nodes were sitting on the same server rack which uncovered the coin to seizures and safety threats.

In early 2018, Alex Simons, the id department leader at Microsoft, discovered that expanding block measurement corresponding to the ones completed by way of the Bitcoin Cash crew threatened decentralization greater than second-layer scalability answers like Lightning Network.

“While some blockchain communities have increased on-chain transaction capacity (e.g. block size increases), this approach generally degrades the decentralized state of the network and cannot reach the millions of transactions per second the system would generate at world-scale,” he had mentioned.

What’s Next for Bitcoin Cash

The central facet of any decentralized blockchain mission is its skill to protect the machine towards central keep watch over. In a worst-case situation, malicious mining entities may just mix their hashrate output to shape a solid coalition. It may just cause them to save you transactions from getting showed; it would permit them even to opposite the showed transactions or spend one legitimate token two times by way of developing a brand new chain or by way of changing previous blocks.

Bitcoin Gold, for example, suffered a 51% attack on its community in 2018 the place attackers double-spent BTG tokens for a number of days. They ultimately stole $18 million value of Bitcoin Gold tokens, in step with the BTG/USD change price on the time of the assault. In August 2016, two Ethereum-based crypto tasks, Krypton and Shift, additionally suffered 51% assault on their networks.

In some circumstances, mining swimming pools which accidentally crossed the 50% hashrate barrier voluntarily lowered their computing energy with the aim of redistributing it to different mining swimming pools. GHash.io, for example, had exceeded 50% of the bitcoin’s computing power in July 2014 however lowered it again to 40% after going through a neighborhood backlash.

What BTC.TOP may just do is what GHash.io had completed in its time: let pass of one of the computing energy to reinject consider within the Bitcoin Cash community. If it doesn’t cut back, the virtual foreign money may just undergo massively as buyers’ sentiment wears off.

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