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Centralisation fears rise as two pools control 57% of Bitcoin hashrate

Centralisation fears rise as two pools control 57% of Bitcoin hashrate

GrafaGrafa2024/08/26 01:25
By:Liezl Gambe

The cryptocurrency community is increasingly alarmed by the centralisation of Bitcoin (CRYPTO:BTC) mining, as recent data shows that two mining pools, Foundry USA and AntPool, now control around 57% of Bitcoin’s total network hashrate.

This development has raised concerns about the potential risks to Bitcoin's decentralised nature, a core principle of the cryptocurrency.

Foundry USA, operated by Digital Currency Group, and AntPool, managed by China’s Bitmain Technologies, have become dominant forces in Bitcoin mining.

With Foundry contributing 215.79 EH/s and AntPool 153.55 EH/s to the network’s total 651 EH/s hashrate, their combined influence has sparked fears of centralisation.

These mining pools operate by pooling computational resources from individual miners, offering a steadier income compared to solo mining.

However, the increasing concentration of power among a few pools has led to worries about potential control and censorship within the network.

Experts like Bitcoin developer Luke Dashjr have previously warned about the dangers posed by large mining pools.

They argue that if a single pool or a small group were to control more than 50% of the network hashrate, it could lead to a 51% attack, compromising the integrity of the Bitcoin network.

Although no single pool currently holds this power, the concentration of hashrate among a few pools has already resulted in instances of transaction censorship.

The geopolitical implications of this centralisation are also significant.

Foundry USA aligns with U.S. interests, while AntPool reflects Chinese influence.

This division could further complicate the dynamics within the Bitcoin network.

As Bitcoin continues to evolve, the debate over the balance between centralisation and decentralisation is likely to intensify, with the future of the cryptocurrency’s foundational principles at stake.

At the time of reporting, the Bitcoin (BTC) price was $64,324.73.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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