Last week, we reported how important China has become to the blockchain and cryptocurrency market with several transactions and deals influencing the industry and that's not expected to change for the foreseeable future. China also has a firm grasp over mining pools. In fact, the centralization of mining in China is one of Bitcoin's biggest problems.
As of this writing, the country has been estimated to control 81 percent of the network hash rate. The market pools will live and die by the moves made in China and two really serious problems have emerged recently.
Bitmain’s Mining Pools Control Nearly 51% of Bitcoin Hashrate
According to new data reported by
Many people are concerned about Bitmain controlling 51 percent of the market because the company could potentially try to attack the network with the majority control. There's little incentive for Bitmain to attack Bitcoin, but that doesn't stop a lot of people from worrying about the company holding that much power.
Back in 2014, Ghash was a Bitcoin mining pool that actually crossed the 51 percent threshold for a brief period of time. However, people were as concerned about the company having that much control, so the company actually told users to move their hashpower to other pools to keep the market from becoming centralized. Unfortunately, it doesn't seem that Bitmain is planning to give up any of its
What Can Be Done to Stop Bitmain From Reaching 51 Percent?
The long-term problem about
This should allow individual miners to select their own transactions instead of letting mining pool operators make the choice for them. The belief is also the new protocols would make it more difficult for a mining pool operator to be in a position to attack the network.