Increasing Dominance of Big Players Controlling Bitcoin Network Sparks Centralization Concerns: Two Firms Control 56.7%
On-chain data showed Bitcoin mining giants Foundry and Antpool seized 56.7% of Bitcoin blockchain network’s hashrate.
As of August 25, 2024, the landscape of Bitcoin mining is increasingly dominated by large players, with Foundry USA and Bitmain’s Antpool emerging as the most influential. Combined, these two mining giants control a staggering 56.7% of the total Bitcoin network hashrate, raising questions about the decentralisation of the Bitcoin network—a cornerstone of its original design and appeal.
Surging Hashrate Dominance
The total Bitcoin network hashrate currently stands at approximately 651 exahashes per second (EH/s). Foundry USA has taken the lead, accounting for 215.79 EH/s, while Antpool follows closely, contributing 153.55 EH/s. The combined power of these two pools highlights their growing influence over the Bitcoin network.
Foundry USA’s rise has been particularly noteworthy. At the beginning of 2024, Foundry’s hashrate was recorded at 140.26 EH/s. The subsequent increase to 215.79 EH/s marks a significant growth of 75.53 EH/s. This rapid expansion reflects Foundry’s aggressive strategy to secure a larger share of the mining market.
In contrast, Antpool’s growth has been more gradual but steady. Starting the year at 147.40 EH/s, Antpool has managed to hold its position as the second-largest mining pool throughout 2024, now contributing 153.55 EH/s to the Bitcoin network’s total hashrate.
Concerns Over Centralization
The increasing dominance of Foundry and Antpool has sparked debates within the cryptocurrency community about the potential centralization of the Bitcoin network. Centralization is seen as a threat to the core principles of Bitcoin, which was designed to be a decentralised, peer-to-peer Bitcoin network system. With over half of the network’s hashrate controlled by just two entities, the balance of power is shifting towards centralization, which could make the network more susceptible to collusion or external influence.
Smaller mining operations are finding it increasingly challenging to compete in this environment. The high costs of mining equipment, coupled with the growing hashrate, make it difficult for small players to achieve profitability. As a result, many smaller miners are being pushed out, leaving the field open to large-scale operations like Foundry and Antpool.
Implications for Bitcoin’s Future
The growing control of Bitcoin’s hashrate by a few large players raises important questions about the future of the network. If the trend towards centralization continues, Bitcoin could face risks that it was originally designed to avoid, such as reduced network security and increased potential for manipulation.
Industry experts are calling for a reassessment of Bitcoin’s mining model to ensure that it remains open and accessible to participants of all sizes. Some suggest that innovations in mining technology or changes to the network’s consensus mechanism could help level the playing field.
As the debate over Bitcoin’s decentralisation intensifies, the actions of major mining players like Foundry USA and Antpool will be closely watched. Their influence on the network will play a crucial role in shaping the future of Bitcoin and its role as a decentralised digital currency.
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