Bitmain is approaching 51 percent Hasrat network. Should we be afraid?

Centralization — the main enemy of the cryptocurrency and the biggest fear of her owners. The concentration of power in few hands can put a cross on the coins or even the entire niche. On Monday participants in the community again talking about the 51% attack, this time from Bitmain. Understand whether it makes sense to panic.

How is Bitmain

The Chinese company Bitmain is often called the giant. Not only is it a leader in the production of ASIC-miners, but in addition, officially owns three mining pools. It AntPool, BTC.catfish and ConnectBTC, which are under the control of the management Bitmain.

Recent data show that these pools during the last weeks I had to 25.7, 16.1, and 0.2 percent of all blocks in the Bitcoin network, respectively. The result is a 42 percent overall Hasrat, and this is an alarming bell. The figure was a record. Before these pools has never possessed such a share of the BTC network, according to BitcoinMagazine.

Representatives of the community sounded the alarm. You can understand them, because in theory, the danger really is. The main threat — the attack 51 percent.

What threatens attack 51

First, a little theory. Mining — finding solutions to tasks using computing devices. Transactions are recorded in the blocks that build a chain. This ensures that the work of the network of cryptocurrency.

As soon as the device finds a correct decision block, the latter is added to the blockchain. Sometimes different miners find blocks at the same time. In this case there is the probability of creating two different chains. Network to cope with the threat of the easy — block is sent in the longest chain.

But if in one hand focuses more than half of the computing power, the rules change. The owner becomes the main player in the market, and the competition disappears. He receives an incredible opportunity. For example, you can choose to use the old block in the chain and re-mine. A new chain will overtake the old, as a result, all previous transactions will be invalid.

In addition, the holders of a greater share Hasrat may refuse to accept blocks from other miners or even add to blacklist certain Bitcoin addresses.

If there was ever before

Yes. As we wrote in July 2014, GHash pool.io has exceeded 51 percent. To reduce the degree in kriptonsite users voluntarily reduced the rate to 39 percent.

Whether Bitmain 51 percent of capacity

The question is not quite correct. Much better question is whether Bitmain already 51 percent Hasrat? It is not excluded.

Reporters noted that on AntPool, BTC.catfish and ConnectBTC matter. The impact Chinese companies can be much wider. For example, Bitmain is the only investor ViaBTC, which controls 8.9 per cent of total Hasrat network. By the way, at the time the share ViaBTC rose sharply, causing users suspected Bitmain in connection with the site even before the official announcement of the investment. Both companies denied the charges.

Chinese sources also reported “informal” communications with Bitmain BTC pool.TOP, which accounts for 12 percent of the network. Its owner, Jiang Czar also did not agree with these data.

Anyway, Bitmain potential in influencing Hasrat significantly above the required 51 percent.

It turns out, the end of everything?

Optional. Possession pools does not mean that the power is controlled Bitmain. A part may belong to the miners lone, able to switch to a different pool at any time.

But it could be exactly the opposite situation. Speaking in favor of this giant data center Bitmain in China, which is enough to control hasraton. Even if not all devices out there are owned by the company, its employees have physical access to them.

In the end

While reports about the capture of the network Bitcoin Bitmain are in fact fantasies. The company earns a lot of money even without a complete monopoly. And if you remember the desire of the General Director of the company to reach IPO, and the resulting need “to be transparent”, the alarm goes off in the background.

Bitmain is not profitable to dig his own grave and cut the branch on which it sits. Until the company went into Artificial intelligence, its revenues depend on the state of the sphere of cryptocurrencies. Obviously, in the case of fraud, attacks and other dirty tricks the course and trust in the coin will fall, causing the company’s profit will shrink. Bitmain needs this niche, and in a healthy condition. Minim until Melnitsa.

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