As an analyst with a background in cryptocurrencies and geopolitics, I am deeply concerned about the recent trend of centralization within Bitcoin mining. The dominance of large pools like AntPool and Foundry USA raises valid concerns about potential centralization and the risks it poses to the network’s security and decentralized nature.
On May 17, AntPool, the second largest Bitcoin mining pool, successfully mined seven consecutive blocks of the Bitcoin network in a row. This event has raised concerns among the cryptocurrency community regarding the security of the Bitcoin network.
In this set of transactions, which consisted of 20,686 individual ones, more than 23 bitcoins were exchanged, amounting to around $1.54 million in earnings.
Between blocks 843,898 and 843,904 in the blockchain, a surge in mining activity took place, which continued for approximately one hour and thirty-eight minutes.
Two prominent mining pools, AntPool and Foundry USA, collectively account for more than half of Bitcoin’s computing power. This dominance has sparked apprehensions regarding potential centralization and the risk of 51% attacks.— TOBTC (@_TOBTC) May 17, 2024
According to data obtained from mempool.space, AntPool earned a total of 23.158 BTC. This amount includes 1.283 BTC gained through transaction fees and 21.875 BTC derived from the block reward.
The participation of Foundry USA, the biggest Bitcoin mining pool, in this sequence adds an element of mystery. They were responsible for mining the block before this one and the next two following it.
As an analyst, I’ve examined the mining statistics for the past week and found that AntPool accounted for approximately 25.48% of the total blocks mined during this period. However, Foundry USA outpaced AntPool with a notable lead, having mined around 31.12% of the network’s blocks in the same timeframe.
As an analyst, I would put it this way: In October 2023, Antpool attempted to displace Foundry’s position as the leading miner in the market, managing a 56.6% combined mining dominance for just three days.
This occurrence highlights the potential dangers associated with relying on centralized mining pools, specifically their vulnerability to threats like double-spending and transaction suppression.
It has been observed that AntPool and Foundry currently manage half of Bitcoin’s mining power, triggering apprehensions regarding the possibility of centralization and transaction suppression.
As a researcher examining the cryptocurrency market, I would express that concentrating so much power in one place could potentially jeopardize Bitcoin’s fundamental principles. Specifically, Bitcoin’s decentralized nature and its founding tenet of trustlessness might be at risk due to this power concentration.
AntPool was founded in 2013 by Bitmain Technologies, a prominent manufacturer of mining hardware.
It’s based in Beijing.
National security concerns over crypto mining
The U.S. authorities have ordered a Chinese-supported cryptocurrency mining firm to cease the development of a mining site in Wyoming.
Based on a May 13th order issued by President Joe Biden, MineOne Cloud Computing Investment and its collaborators are required to dispose of the land adjoining the Francis E. Warren Air Force Base in Cheyenne, Wyoming.
A Chinese-backed corporation named MineOne Partners Ltd. intended to procure property close to the Francis E. Warren Air Force Base in Cheyenne, Wyoming, for cryptocurrency mining operations.
As an analyst, I would rephrase it as follows: I’m here to share some insights regarding a recent order issued in conjunction with the U.S. Committee on Foreign Investment in the United States (CFIUS). This measure is designed to alleviate fears surrounding potential risks that could arise from foreign ownership of land close to sensitive military installations, such as Warren AFB, which houses nuclear missile bases.
The executive order calls for MineOne to dismantle its cryptocurrency mining operation and eliminate all Chinese-owned machinery from the premises by certain deadlines, in order to adhere to regulations and lessen potential hazards.
New legislative proposals from Norwegian regulators aim to enhance oversight of cryptocurrency mining operations in local data centers.)
The new data center regulation law, set to lead the way in Europe, mandates detailed registration for operators and full disclosure of provided services.
The Norwegian administration, spearheaded by Digitalization Minister Karianne Tung and Energy Minister Terje Aasland, underscores the importance of halting projects considered harmful to the environment. Notably, they have specifically targeted cryptocurrency mining due to its significant contribution to greenhouse gas emissions.
As a responsible and environmentally-conscious crypto investor, I can understand and respect the stance taken by Norway’s Energy Minister Terje Aasland. He has made it clear that businesses looking to exploit the country’s energy resources at low costs are not welcome in Norway. This approach aligns with the nation’s commitment to its environmental goals. By prioritizing sustainability over short-term gains, we as investors can also contribute to a greener future for generations to come.
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2024-05-18 20:10