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According to the result of this research, it was concluded that Bitcoin was less centralized than its peers, Ethereum and Bitcoin Cash. The long hash research has tried to examine the recent pool of mines of Bitcoin and compared it with those of two other major cryptocurrencies, Bitcoin Cash and Ethereum.
Ethermine and SparkPool_3, control more than 50% of the total hash rate of the Ethereum network
According to LongHash research, Ethereum also has two miners that control over 50% of the Ethereum hash rate. While the XRP is always accused of being a centralized token, mining pools with high percentages of hashes seem to drop many other better coins in that category.
For Ethereum, while there are several data mining pools, only two of them, Ethermine and SparkPool_3, have controlled more than 50% of the total network hash rate.
The results found that Bitcoin Cash is even less decentralized. The first two pools of Bitcoin Cash, BTC.TOP and BTC.com were found controlling over 53% of the total hash rate.
Compared to Bitcoin, only 29% of the hash rate was in the hands of the first two mining pools that are BTC.com and Antpool. It was surprising that Bitcoin gradually became more decentralized in June 2018, while BTC.com and Antpool managed 41% of the total Bitcoin hash rate. At that rate, many analysts and investors pointed out that this high level of control of hash percentages was a cause for concern because the two pools are owned by the same company (Bitmain). This meant that a single entity was close to controlling 51% of the hashing power of the network.
Furthermore, it has been observed that over the last 6 months, Bitmain mining pools have lost 28% of their market share, marking a shift towards greater decentralization of the BTC mining sector.
This analysis has meaning as for proof-of-work blockchains, a pool or company that commands a 51% hash rate that has the power to confirm a false transaction. This authority that culminates in a possible attack has a very negative impact on the value of the token
In the early days of Bitcoin's growth, the mining sector was more distributed. As the digital currency continued to grow, mining turned into more profitable hash rates declared increasingly concentrated in the hands of several large mining basins. Although the turbulent nature of the sector has confirmed that even the largest mining basins have difficulty maintaining power.
Will this centralized nature of the mining basins fail as the cryptocurrencies mature? Let us know your opinions on the same
Summary
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Bitcoin less centralized than Ethereum and Bitcoin Cash-Long Hash Research
Description
According to the result of this research, it was concluded that Bitcoin was less centralized than its peers, Ethereum and Bitcoin Cash. The long hash research has tried to examine the recent pool of mines of Bitcoin and compared it with those of two other major cryptocurrencies, Bitcoin Cash and Ethereum.
Author
Nilesh Maurya
Publisher name
Coingape
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