The largest mining company Bitmain last week produced 42% of all bitcoin blocks, and Hasrat company in the bitcoin network is moving steadily closer to 51%.
Bitmain and 51%
Bitmain said that last week, 42% of all blocks in the Bitcoin network was made at their facilities. Hasrat BTC.com and AntPool, which are both owned by Bitmain, currently is 26.6% and 15.3% of the total Hasrat network.
Bitmain Technologies Ltd. based in Beijing the company in mining, only for 2017 announced astounding profits, which fluctuate between 3 and 4 billions of dollars. Bitmain manufactures specialized equipment for mining bitcoin and other cryptocurrency – ASIC-Ki. They are much more powerful than the graphics card.
In addition to the production of ASIC-s Bitmain also owns several mining pools and offers cloud mining.
Bitmain also deals with Bitcoin mining Cash (BCH) as the BCH and BTC are working on the same algorithm. If Bitmain will cease production of BCH and instead uses 100% of its resources to mining BTC, then the company will receive 45% of the total Hasrat the Bitcoin network now.
It’s fairly close to 51%. And this, in turn, gives you the opportunity Bitmain to attack 51% of the Bitcoin network, and rewrite any transaction at its discretion.
How likely is attack 51%?
Many cryptocurrency enthusiasts are beginning to get nervous at the mention of 51%. This means a loss of decentralization. What happens if Bitmain will get 51%?
This is not the first case in the history of bitcoin when a 51% controlled by a single company. In 2014, mining company “Ghash” has received 51% Hasrat.
Then the company representatives urged the miners to move their resources to other mining pools. Representatives Ghash has called on all companies that will be in their place in the future, to follow their example. The difference is that Ghash was not a traditional company, but rather a community of miners, while Bitmain is a classic centralized company.
Another unlikely solution would be to change the algorithm Bitcoin Proof-of-Work (PoW). But this is unlikely due to security issues that may arise.
The chances are that Bitmain will make the attack 51%, are incredibly small, as it is likely to harm the company in the long term. Much more concern is the fact that 51% Hasrat concentrated in one place. In the event of a successful hacking of the company, the attackers will have full control over the Bitcoin network and this really should be afraid.