Bitcoin is Becoming More Decentralised

CRYPTO 101
May 15 · 2 min read

As Bitcoin blasts through $8000 USD on most exchanges and Consensus rages on in New York City, there is plenty of euphoria in the crypto space right now.

The 7000 BTC Binance hack is still sending shockwaves through the trading and investing communities but nowhere near as much as was once feared. We covered the ins-and-outs of the Binance hack here, with an emphasis on one specific proposal by Binance CEO CZ, namely to rollback the Bitcoin blockchain to essentially undo the theft and return the stolen funds.

We warned that this was a terrible idea and many of you agreed. We also did a quick write up here, that detailed the difference between a hack and a fundamental flaw in Bitcoin that was designed to help educate people who were unsure of the difference.

Talk of powerful people and groups unifying their hashing power to manipulate Bitcoin is worrying. However, there is some good news pushing things in the opposite direction. Recent data published by the Diar research group has highlighted that the percentage spread of mined blocks by the mining pools and players in the Bitcoin network is becoming more diverse and decentralised. Here is the data:

The diversification or decentralisation of mining power on any crypto network is a good thing. Essentially the more mining power one centralised authority has the closer that group is to being able to manipulate the blockchain.

Bitmain’s drop from running over 50% of the mining power down to 36% is encouraging for those of us who want to secure Bitcoin’s long-term future.

While this decentralisation of mining power is a good thing Diar also points out that one worrying development is that the number of mining pools are diminishing. They state that the number of pools today compared to that of the start of 2018 has dropped by 40%.

The mining of Bitcoin isn’t the only metric with which to measure its decentralised nature — but it is an incredibly significant one. This data is a welcome development as we continue to watch Bitcoin come under more and more public attention.

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The Average Consumer Guide to Cryptocurrency