With a joint study conducted by Princeton University and Florida International University, he warned the crypto community on the fact that three -quarters of Bitcoin mining is located in China and that the mining network may experience possible risks that may be caused by the geographicalization of the mining network.
Researchers say China is Bitcoin’s biggest rival
The aim of the study titled “China’s rising threat: Analysis of the Chinese influence on Bitcoin” was to determine how much Bitcoin threatened the security, stability and sustainability of Bitcoin, with a dominant political and economic contract in the Bitcoin ecosystem, and to investigate China’s control over the domestic activity and domestic internet infrastructure.
According to the study, “China is one of Bitcoin’s most powerful potential enemies” and the country “Crypto currencies show negative attitudes and even uses all its power to impress it.”
While researchers estimate that 74 percent of the Hash in the Bitcoin network is in the mining pools under China, the centralization of such a power has been investigated by the Chinese government to attack the Bitcoin network.
The report states that mining pools managed by individuals in China have been at least half of the hash power in the network since 2015.
Mining pools owe their assets to the request of the Chinese Government
“As of June 2018, more than 80 percent of Bitcoin mining is happening by six mining pools”.
Although pool miners cannot be controlled directly by China, it is emphasized that the operators of these pools are “subject to Chinese authorities in China. For this reason, he argues that “managers should check the inputs and outputs of miners because of their responsibilities to appoint mining and disseminating completed blocks and that they should ‘indirectly dominance’ in order to provide indirect power to Chinese authorities.
According to the research, geographical centralization has a 51 percent risk of attacks
The report emphasizes that intensely centralized mining activities in China have a 51 %risk of attacks, and that the Chinese government has strong and central control over economic and financial activities and a comprehensive surveillance and censorship regime on the Internet.
According to the researchers, the power does not directly the Chinese government directly the right to orders to the pools under the Chinese administration ”, but the Chinese government has various tools to influence mining pools and Bitcoin in general. The research also underlines that China has recently implemented restrictive arrangements that affect the Bitcoin and crypto money market globally.
According to the report, “China has mature competencies and strong reasons to carry out various attacks against Bitcoin: China’s authoritarian central structure and the ‘decentralization’ of crypto currencies.
What are your thoughts about the centralization of China in the Bitcoin network? Do you think China poses a threat to the Bitcoin network? You can share your thoughts with us in the comments section below!
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