Centralization Concerns Rise as Two Mining Pools Dominate Over 50% of Bitcoin Hashrate

Recent data reveals that Foundry USA and AntPool now control 57% of Bitcoin total network hashrate, sparking fears of centralization within the crypto community. This concentration of power raises concerns about the potential for censorship and control, threatening Bitcoin foundational principles.

Concerns are growing within the cryptocurrency community about the increasing centralization of Bitcoin mining, which some fear could undermine the decentralized nature of the world’s first digital asset. Recent data from BTC.com reveals that two mining pools—Foundry USA and AntPool—now control approximately 57% of Bitcoin’s total network hashrate.

Mining pools are collaborative networks where individual miners combine their computational power to increase the chances of mining a block. This collective approach offers a steadier income compared to the unpredictable rewards of solo mining. However, the dominance of Foundry USA and AntPool has raised alarms about the centralization of Bitcoin mining.

Foundry USA, owned by Digital Currency Group, which is also the parent company of Grayscale, represents U.S. interests, while AntPool is operated by China’s Bitmain Technologies. Foundry contributes 215.79 EH/s, and AntPool adds 153.55 EH/s to Bitcoin’s total network hashrate of around 651 EH/s.

The rivalry between these two mining giants could have geopolitical ramifications, as their influence continues to grow. This centralization threatens the core principles of Bitcoin’s decentralized network, where no single entity should have too much control.

Bitcoin developer Luke Dashjr has previously warned against the dangers posed by large mining pools, arguing that such concentration could lead to censorship and control issues. If a single pool were to control more than 50% of the network hashrate, it could potentially launch a 51% attack, undermining the network’s integrity.

While no single pool currently holds that much power, the concentration of influence among just a few pools has already led to instances of transaction censorship on the Bitcoin network. In 2023, for example, F2Pool censored transactions in compliance with the Office of Foreign Assets Control (OFAC) list but reversed its actions following backlash from the Bitcoin community.

As the debate over centralization continues, the future of Bitcoin’s decentralized ethos remains uncertain. The crypto community is watching closely to see how this situation unfolds and what impact it may have on the broader Bitcoin ecosystem.

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