Bitcoin SV is the most centralized ‘Bitcoin’ network
The post Bitcoin SV is the most centralized ‘Bitcoin’ network appeared on BitcoinEthereumNews.com.
Bitcoin, the software developed by Satoshi Nakamoto, has been updated multiple times since its inception, which resulted in different protocols, networks, and communities. Among all the variations, three chains have kept the core protocol designs while making minor changes: Bitcoin (BTC), Bitcoin Cash (BCH), and Bitcoin SV (BSV). From the similarities, the three of them have a capped circulating supply of 21 million that will be reached approximately by 2140 with each of their miners discovering blocks in an interval of approximately 10 minutes, guaranteed by the mining difficulty adjustment. Besides that, both BTC, BCH, and BSV use SHA-256 as their mining algorithm and can be mined through special ASIC mining machines. With that in mind, Finbold gathered data from MiningPoolStats to understand the mining decentralization state for the three main chains carrying the name ‘Bitcoin’. Bitcoin SV (BSV) mining centralized in 1 entity Worryingly, one single entity has mined more than half of the last 1,000 blocks (or one week) in the Bitcoin SV network. This entity is the mining pool taal.com, with 50.2% of the global block discovery in the last seven days. Bitcoin SV (BSV) block distribution last 1,000 blocks. Source: MiningPoolStats Notably, the network hashrate public data shows a different result, with a globally reported hashrate of 18.36 PH/s, and the GorillaPool being responsible for 88% of it with a 16.21 PH/s reported hashrate. Bitcoin SV (BSV) global hashrate. Source: MiningPoolStats For this reason, Finbold looked to block discovery as a more reliable metric to understand the true decentralization state, as block discovery is proportional to the real Proof of Work being deployed to the network in order to collect the block reward and dominate BSV’s distribution. With over 50% of the contributed hashrate, Taal Pool could, theoretically, perform a 51% attack on Bitcoin SV. This…
Filed under: News - @ October 21, 2023 5:22 pm