Five crypto mining companies are dominating the operation of the bitcoin network

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2021-04-19 11:50:46

Bitcoin’s infrastructure is concentrated in the hands of a handful of companies, thereby raising alarm bells about the security and viability of the network considered decentralized, Bloomberg reported.

Transactions on the bitcoin network are processed by cryptocurrency miners, with the vast majority of companies operating a variety of mining computers.

As competition increases, many smaller firms fail to make a profit and get kicked out of the game, while larger firms jump in on partnership contracts in other forms. together.

As a result, five crypto mining companies, all based in China, control 49.9% of all the computing power of the Bitcoin network, the highest level of centralization ever. So far, a new analysis by TokenAnalyst shows.

Through the BitDeer site, 5 mining pools (Bitcoin mining pools), AntPool, BTC.com, BTC.top, F2 Pool and ViaBTC are now renting out the ability to mine cryptocurrencies for consumers. or setting up specialized hardware for cryptocurrency mining.

BitDeer serves as an effective link between these five crypto mining companies, each allowing individual miners to share resources and share Bitcoin rewards after the successful algorithm.

The problem is that a miner with more than 50% of the hash power can wreak havoc on Bitcoin’s decentralized network, increasing the likelihood of duplication, thereby disrupting payments and delivery Translate.

The attraction of Bitcoin has always been decentralization of power, not dependent on governments or intermediaries. Yet, over the last few years, the vast majority of cryptocurrency trading seems to be dominated by a few major exchanges. Currently, the operation of the Bitcoin network is also becoming much more centralized than before.

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