Bitcoin (BTC) News: Centralization of Mining with Two Dominant Players

Bitcoin Mining Centralization: Foundry and AntPool Lead the Way

Concerns are mounting within the crypto community about Bitcoin's increasing centralization, which some fear could threaten the foundational principles of the world's first digital asset. Recent data from BTC.com reveals that two mining pools — Foundry USA and AntPool — now control approximately 57% of Bitcoin’s total network hashrate.

Understanding Bitcoin Mining Pools

Bitcoin mining pools are collaborative networks where individual miners combine their computational power to improve the likelihood of mining a block. After deducting maintenance fees, rewards are distributed among participants based on their contributed hashing power.

• Foundry contributes 215.79 EH/s
• AntPool contributes 153.55 EH/s
• Total Bitcoin network hashrate stands at around 651 EH/s

However, the landscape has become increasingly dominated by Foundry and AntPool, which are now fierce competitors. Some experts warn that the rivalry could have geopolitical ramifications.

Potential Risks from Centralization

Bitcoin developer Luke Dashjr cautions against the dangers posed by large mining pools. He argues that centralization jeopardizes Bitcoin’s decentralized nature, potentially leading to censorship and control issues. If a single pool were to control more than 50% of the network hashrate, it could potentially launch a 51% attack, undermining the network’s integrity.

While no single pool currently holds such power, the concentration of influence among a few pools has already led to instances of transaction censorship on the Bitcoin network.

Regulatory Compliance and Community Response

Many mining pools are subject to regulations requiring them to adhere to economic sanctions. For example, in 2023, F2Pool censored transactions in compliance with the Office of Foreign Assets Control (OFAC) list but later reversed this action following backlash from the Bitcoin community.