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Listening to Tom Luongo and Dan Held yesterday and Dan was saying mining is centralized to 2 companies controlling about 60% of the mining power. How can this lead to an issue for BTC being decentalized? I assume if they control a lot of the hash power they can try to rewrite the time chain and potentially create a ledger which able to be controlled ie double spend etc. They could potentially create a new time chain in competition with the original and then players like Blackrock can choose to use that chain perhaps.

I heard mention of block templates also. Where is a resource that can help me understand this potential vulnerability more?

Are people out there concerned about this? i dont hear much talk about it but maybe thats because its uncomfortable for us to talk about vulnerabilities of our beloved BTC.

#asknostr #nostr #btc #mining #bitcoin #plebchain

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Discussion

TextNow十𝟭𝟳𝟬𝟳𝟯𝟮𝟵𝟴𝟱𝟳𝟱 1y ago

Yes Man, It is true that the mining of Bitcoin has become more centralized over time, with a small number of companies and pools now controlling a large portion of the mining power. This is a concern because a small group of actors could potentially have enough power to control the network and make changes to the Bitcoin protocol that could negatively impact the decentralization of the network and its users.

⚡️Bitcoinia (Bitcoin Art) 1y ago

Whats the solution?

Point your miner at a new pool?

Create a new pool?

Create many new pools?

Im aware of Ocean Mining to remedy this I think.

samuel 1y ago

This should not be a concern think of hard fork. What happens is all the minors that see something nefarious going on in the main fork keep mining on a split fork that has integrity every time it loses its integrity they go down another channel. The money will always stay with the bitcoin that have integrity.

Satoshi basically outlined this as a technique in some of his early writings to regain integrity on the main block chain if something nefarious ever happened

#btc #hodl #bitcoinstr

⚡️Bitcoinia (Bitcoin Art) 1y ago

In this scenario, I think, the potential danger is that the hash power ie 60% estimated between 2 pools is greater than the rest of the hash power and the forked chain cannot keep up and cannot become the longer chain. Longest chain is one of the consensus rules I believe. Although in writing this I can see the solution is just to get people to point their miners at diff pools lowering their hash power and of course diversifying the number of pools.

samuel 1y ago

The longest chain with integrity wins, miners that detect a longer chain with a double spend do not have to give up a join the longer chain. They can very happily keep mining on the shorter chain they are on. Effectively become blind to any chain with integrity issues. Part of giving up and switching to a longer chain is a simple integrity check on that chain.

All distributed systems consensus base have to handle split brain.

Implication: It may take more than 6 confirmations to be considered irreversable. But not much more…