Cryptocurrencies
Bitcoin’s Network Operations Are Controlled by Five Companies
- Chinese mining pools control about 50% of network, report says
- Miner concentration could threaten Bitcoin’s security, safety
This article is for subscribers only.
Bitcoin’s infrastructure is more centralized than ever before --raising alarms about the security and viability of what is championed as a decentralized network.
Transactions on the Bitcoin network are processed by so-called miners -- mostly companies operating vast arrays of computers. As competition increased, many smaller participants became unprofitable and dropped out, while the larger operations have entered into various partnership agreements. As a result, five mining entities -- all of them based in China -- control 49.9% of all computing power on the network, the highest concentration of mining power ever, a new analysis from TokenAnalyst found.