Bitcoin Decentralization Increased, Researchers Report

Fungi, Bitcoin, Decentralization

Bitcoin decentralization has intensified and continues to grow over the past five years, according to a study by finance firm Canaccord Genuity Group..

The February report says that this is primarily due to increased competition in the market and the distribution of the hash rate among various participants. According to Canaccord, in mid-2014, the GHash.IO mining pool controlled almost half of the network’s computing power, which increased the likelihood of an attack by 51%. However, at the moment, none of the pools controls more than 19% of the bitcoin hashrate. At the same time, only 5 participants have more than 10% of the total network capacity.

 

Although the researchers identify several factors that contributed to the improvement of the situation, the most important is the widespread use of ASICs due to the development of chip technologies, which has intensified the struggle for receiving rewards. For example, for Bitmain 2018 was a difficult year and the manufacturer was unable to create an alternative superior to the Antminer S9, so Canaan Creative hardware became more popular among miners..

However, the hashrate distribution numbers vary greatly depending on the source. According to Blockchain.com, Antpool’s share is 10.5%, while Bitaps insists that the same pool has only 8.5%. 

Bitcoin Decentralization Increased, Researchers Report

Recall that in the course of another study, it was found that mining bitcoin consumes almost 3.5 times more energy than mining gold at a similar cost..

text: Ivan Malichenko, photo: Canaccord, Shutterstock

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