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Mining Pool, Decentralization, and Network Security

500 sats \ 15 comments \ @famisbtc 20 May bitcoin

Let's talk about what I believe to be one of the most centralized points in Bitcoin: mining pools.

I think there's little debate about the real power these pools hold, and several questions arise in this regard.

https://m.stacker.news/31714

What would happen if the pools colluded and launched a 51% attack?

Of course, I understand that all of us who mine and provide them with that computational power would take away their power by disconnecting our ASICs from their pools, but that still remains a concern...

On the other hand, the computational power is increasingly concentrated in fewer pools, and today they control more than 54% of the network, which is alarming...

This week, the mining pool Antpool managed to mine 7 consecutive blocks, which raises concerns as it risks the decentralization and security of the network.

In the last 7 days, Antpool has managed to mine 25% of the blocks that have been mined.

https://m.stacker.news/31713

I want to know what you think about this. Do you believe it poses a problem?

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128 sats \ 3 replies \ @OT 20 May

It would be nice to have more competition to bitmain/antpool.

It does seem like most bitcoin miners care more about fiat profits than the network itself. I guess they take higher risks than the people who simply buy it, but they must know that having too much centralization hurts us all in the long run.

101 sats \ 2 replies \ @famisbtc OP 20 May

Yes, I agree. As a miner, I'm concerned about the network and its security, but what option do we have?

Solo mining entails spending a lot of money on maintaining the ASICs and, with a high probability, never actually mining a block, resulting in significant losses without any return.

Being in a pool ultimately becomes almost a "requirement" if you want to avoid massive losses and don't view mining as a lottery.

Thank you for your comment! 😊

0 sats \ 1 reply \ @OT 20 May

I’ve decided to mine at home when we move soon. I’m looking at ocean or one of these pleb mining pools. Have you looked at these options?

0 sats \ 0 replies \ @famisbtc OP 20 May

I've been with SBIcrypto for years, and I haven't had any issues. I'm very happy with the service, and it's a small pool.

101 sats \ 2 replies \ @Fabs 20 May

They could, but why would they?

After all, they're operating a large amount of specialized equipment that's produced to do only one thing: brute-force an applicable output as efficient, fast and often as possible.

If they were to undermine the confidence in the very thing they're making their living off of, then that'd be a very dumb move--- and a possibly expensive one at that.

I've never understood the angst for "mining pool centralization"; what are they gonna do? Censor transactions and blocks? And then? Fork off to a chain nobody's gonna use?

0 sats \ 1 reply \ @famisbtc OP 20 May

It's true that they wouldn't have to do it and it would be a stupid move, but doesn't history show us many absurd decisions?

If they had 51% of the network, they could even generate transactions at will, change the block rewards, or alter many of the things that are currently strengths of the network.

I don't think anything will happen, I'm just raising the question and presenting the information to spark debate. 😉

10 sats \ 0 replies \ @Fabs 21 May

but doesn't history show us many absurd decisions?

People are irrational, that I know, but one might hope that there's no total idiot running these mining operations--- then again, we've got megalomaniac clown's in some of world's most powerful positions...

If they had 51% of the network, they could even generate transactions at will, change the block rewards, or alter many of the things that are currently strengths of the network.

Oh no, they just outed themselves as the bad guys, what will the network do? 👀

0 sats \ 3 replies \ @PRA3S3NT1A 20 May

Not sure what is the solution. Pool centralisation is a problem for sure. What people can do who live in a high electricity cost environment ? Lottery mining sound fun although it come with a cost and probably never will find a block.

0 sats \ 2 replies \ @famisbtc OP 20 May

If you live in a place with high electricity costs (like myself), you'll have to choose hosting in a location with cheaper electricity. But be careful, as there are many scammers out there.

If you want a 100% guaranteed return, you'll have to join a mining pool. As individuals, perhaps we should start choosing pools with less participation, but there's no incentive other than providing more security to the network. For the vast majority of people, this is insufficient incentive.

Lottery mining is fun if you do it purely as a hobby. You can buy a device with relatively low power consumption and have it running to see if you get lucky. Your chance of winning will be minimal, but there's slightly more chance than with the traditional lottery...

Thanks for commenting!

0 sats \ 1 reply \ @PRA3S3NT1A 20 May

Thank you for your answer, which hosting company you would recommend ? I always play with the idea to buy few asic from sazmining.

0 sats \ 0 replies \ @famisbtc OP 20 May

I've been with SBIcrypto for years, and I haven't had any issues. I'm very happy with the service, and it's a small pool

0 sats \ 3 replies \ @025738dda8 20 May

https://m.stacker.news/31733 https://m.stacker.news/31734

0 sats \ 2 replies \ @Fabs 20 May

?

0 sats \ 1 reply \ @famisbtc OP 20 May

I don't understand it either. I thought it would give some explanation or context

0 sats \ 0 replies \ @025738dda8 20 May

Just screenshots of recent longest series of consecutive blocks... Not only antpool.