Considered one of Bitcoin’s key benefits is its capacity to construct and confirm knowledge. As a decentralized ledger and distributed system, the blockchain infrastructure prevents any centralized entity from manipulating the community for its functions, which is why there isn’t any single authoritative entity within the Bitcoin community.

In concept, mining energy needs to be distributed throughout totally different nodes worldwide, which means {that a} single entity is not going to management the hash fee. In actuality, the overwhelming majority of Bitcoin mining machines are linked to mining swimming pools, and presently, Bitcoin’s nodes and mining energy are largely managed by giant mining swimming pools.

Based on BTC.com mining pool statistics, the highest 15 mining swimming pools management greater than 99% of the computing energy of the complete community, and the highest 3 mining swimming pools management virtually 70% of the computing energy of the complete community, which has raised issues amongst many native Bitcoin ecosystem supporters.

What’s a 51% assault, and what’s the probability of it occurring?

The potential of a 51% assault is elevated since these mining swimming pools management many of the community’s computing energy. A 51% assault (aka Majority Assault) is an assault on a Bitcoin blockchain by an entity or group that controls greater than 50% of the community. If a celebration have been to achieve this a lot community management, it could have the facility to change the blockchain.

Theoretically talking, if a nasty consumer or dangerous consumer group with greater than 50% of Bitcoin’s hashrate have been to collaborate, they might override the community’s consensus mechanism and carry out malicious behaviors reminiscent of double-spending, stopping new transactions, and reverse unconfirmed transactions. Along with the excessive weightage of the highest three mining swimming pools within the complete community computing energy, the info introduced above doesn’t really present the state of affairs of the present centralized mining swimming pools.

For instance, many mining swimming pools at decrease ranks don’t create blocks themselves however immediately switch their mining pool computing energy to the top-ranked mining swimming pools. These small mining swimming pools solely exist as middlemen or are branded as impartial mining swimming pools to draw computing energy, and they don’t have the expertise or funds to bear the chance of fluctuations in luck worth.

Based on the research info by the SpiderPool group, there could also be solely 5-6 corporations in the complete market that accumulate transactions and create block templates by themselves. This additionally signifies that Bitcoin’s decentralized accounting, which we’re happy with, is not any higher and even worse than that of different blockchains, which immediately impacts its anti-censorship traits.

SpiderPool’s ideas on the sustainable growth and prosperity of the Bitcoin ecosystem

Since 2018, SpiderPool has specialised within the cryptocurrency mining pool sector. Now we have established and operated a number of mining swimming pools, together with Ethereum (POW), BCH, BSV, ETC, and different cryptocurrency mining swimming pools. Over the previous 6 years, we’ve got verified and amassed a lot of glorious technical options for mining swimming pools in operation, and many of the group members have greater than 10 years price of mining expertise. Our BTC mining pool has grown into the sixth-largest centralized mining pool based on our community computing energy.

With our ardour for mining and years of expertise in mining swimming pools, SpiderPool hopes to make use of our years of amassed technical benefits and wealthy self-developed expertise, based mostly on the orderly and sustainable growth of the complete Bitcoin mining ecosystem, to turn out to be a mining pool that contributes extra to the complete Bitcoin ecosystem and regularly improve and implement extra decentralization into mining swimming pools.

We consider that having our decentralized mining pool can clear up the issues under:

• Allow miners to acquire comparatively secure revenue, return the facility of transaction choice and allocation again to the miners who work, and shield the decentralization of the Bitcoin ecosystem.
• To stop centralized mining swimming pools from manipulating and deducting miners’ revenue, the revenue calculation strategies needs to be public and the distribution knowledge clear.
• Change the present centralized mining pool custody revenue state of affairs right into a non-custodial state of affairs. This might forestall issues reminiscent of centralized mining swimming pools misappropriating miners’ belongings (which has occurred earlier than) and remove the chance of potential malicious habits by centralized mining pool operators.
• Forestall 51% assaults successfully by stopping a single entity or a number of entities collectively from controlling greater than half of the community mining energy. This management might allow them to carry out double-spend assaults, forestall sure transactions from being verified, and so forth., destroying the decentralized nature of the blockchain community. Decentralized mining swimming pools can forestall 51% of assaults and keep the safety of the Bitcoin blockchain.

To advance our strategic improve in the direction of decentralized mining swimming pools and regularly implement them, SpiderPool has accomplished the event of clear mining knowledge instruments and formally launched them.

We’re excited to announce the launch of “TrustView,” which can characteristic the disclosure of block and fee addresses. Miners can view the data and disclosures of every knowledge and monitor all their info on the chain.

On the identical time, the block particulars, balances, and different details about the block luck worth and fee deal with are additionally disclosed. SpiderPool firmly believes that knowledge transparency is step one in the direction of decentralized mining swimming pools and the one manner for our whole community to turn out to be really decentralized.

Sooner or later, SpiderPool will proceed to research and develop the idea of a very decentralized mining pool. We welcome all Bitcoin ecosystem builders, miners, and crypto geeks to hitch our dialogue on decentralized mining swimming pools to create a extra decentralized and clear Bitcoin mining ecosystem.

Whether or not you’re a miner who needs to hitch a good and clear mining pool or a developer involved in contributing to our mission, we’re glad to listen to your opinions!

Be at liberty to contact us at contact@spiderpool.com or be part of our telegram group: https://t.me/spiderpool_en. Permit us to work collectively to advertise a larger and wider utility of Bitcoin worldwide and make Bitcoin mining decentralized once more!