A Single BSV Mining Pool is Teeter Tottering and Hovering Over Half of Bitcoin SV’s Hash Rate
Decentralization is everything when you have a cryptocurrency. If a single person or group mines more than 51% of the tokens, they could simply just use their hash power to corrupt the network in their favor.
Now, as reported by The Next Web’s Hard Fork, the integrity of Bitcoin SV (BSV), the hard forked token from Bitcoin Cash (BCH), is in check. According to data found by the crypto media outlet, CoinGeek is the biggest BSV miner with 46% control of the network. Also, CoinGeek has even mined 52% of the tokens on some occasions recently.
More than three times in six months CoinGeek exceeded the 51% mark, however, no 51% attacks were ever made. CoinGeek is owned by Calvin Ayre, one of the two public faces of the coin. The other one is our dear Craig “Faketoshi” Wright, the man who wants to convince the world that he is the real Satoshi Nakamoto by using any means necessary.
51% Of The Network Allows For Double Spending And Foul Play
Obviously, this is bad news for the BSV community. Whenever a colluding party owns 51% of the hash rate, they can choose which transactions to accept. This poses a huge security risk for the BSV community, even if Calvin Ayre is a trusted party in the ecosystem.
With over 51% of the network on your side, you can allow double spend, which is when you spend money without really spending it.
Calvin Ayre, a friend of Craig Wright, runs nChain, which mines around 29% of the other tokens. Do you see just how centralized BSV is? A lot. Together, these two people own 75% of the hash rate, which is why you always see their names linked to BSV while you often do not see always the same names with BTC.
CoinGeek has overcome the 51% range twice so far. The first time lasted for a whole week and it was right after the fork. The second one, however, came months later.
Many networks like Ethereum Classic, for instance, have suffered 51% attacks recently, so it is obvious that BSV is simply not very secure right now and will only be when it becomes more decentralized than it is right now.
When This Happened To Bitcoin (BTC), It Was A Huge Problem And People Really Care
The most curious aspect of the situation is that the community is so at ease with the situation. Ayre and Wright are the two most important figures in the network, which is decidedly not a large one. People trust them or else they would not use BSV because BSV is basically becoming their business.
When something like this happened to Bitcoin Core (BTC), it was a scandal. The mining pool Ghast.io once got near the 51% hash rate and this prompted the company to push back. CoinGeek is not following the same example. This means that, more and more, Bitcoin Satoshi Vision is near of becoming Bitcoin Ayre and Wright Vision.