Recently it was revealed that Bitmain, who is the leading hardware development company for cryptocurrency mining operations throughout the world, is nearing the 51% hash rate mark on the Bitcoin blockchain. They account for a considerable percentage of the mining hardware sold, and their dominance is that area is getting stronger as time goes by.
Last year they had about 4 billion in profit from their mining operations, and anyone in the game knows their hardware (application specific integrated circuits or ASIC) can beat out GPUs for cryptocurrency mining. Bitmain’s Antminer Z9 mini, which hashes around the equivalent of 15 1080Tis (GPU), 300 watts, and 10,000 Sol/s that likely will be able to produce even a bit more than that given their history of exceeding the proclaimed parameters for their hardware.
With this equipment, Bitmain also does their own mining, which is why they are so good at what they do because necessity is the mother of invention, and their ascension to the 51% mark is making people nervous because this defeats the purpose of decentralization when any one company has a majority. This isn’t the first time that something like this has happened, but it is the first time that one centralized company has so much control and influence over something that, in theory, should be distributed out over a much broader area.
Everyone likes to think Bitcoin is a much-decentralized operation, and it is if you think about in terms of who owns it. But while all of that is true one can also see that these coins aren’t really decentralized as everyone thinks, and there are intrinsic issues with coins having smaller caps in the past year that brings these half-truths to the surface.
Not that Bitmain would do anything to hurt Bitcoin, but if they’re putting in the cheese it takes to gain over 50% of the Bitcoin hash rate, and to mine more coins out of the pool than anyone else possibly could. If one were to go down the rabbit hole and imagine all the things that could happen as this all develops it could get scary. Read more from hackernoon.com…
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