New Coin.Dance Data Reveals Majority Of Bitcoin SV (BSV) Blocks Are Mined By ‘Unknown’ Entities
Data from Coin.Dance, a site that monitors the crypto mining space, has shown us some interesting foundings. It is not something slightly new that Bitcoin, Bitcoin Cash (and Bitcoin SV) are all mine by the large pools. ASIC miners that use the SHA-256 algorithm are far from rare, this wouldn’t surprise anyone then.
What is, in fact, very surprising is that 44% of all the Bitcoin SV (BSV) tokens mined are mined by “unknown” sources.
Some people were very concerned about this information and a person on Reddit even thought that a 51% attack was coming. However, this number of almost 44% “unknown” miners are, obviously, not a single person, but an undisclosed number of people using their own means.
Comparing Bitcoin SV And Bitcoin Core
The largest mining pool of Bitcoin SV is SVPool with 20%, followed by Coingeek with 15% and BMG Pool with 12.5%. These are the three big mining pools that dominate the environment, which is never a good sign on itself because it may look like concentration. There are also two more pools, Mempool (almost 5%) and Poolin (2.7%).
bitcoin Core, on the other hand, is slightly more concentrated on the top. BTC.com mines 20%, Antpool mines 15% and Poolin mines 15% as well. However, the rest of the ecosystem is very divided. Slush mines 8.3%, F2Pool mines 7,4%, Dpool mines almost 7%, BTC.top mines almost 5%, BitFury mines 4%, Bitcoin.com mines 2,7%, BitClub mines 1,4%, as well as Huobi, Sigma Pool only mines 0,7% and the other pools do not amount to more than 7,6%.
So, despite the largest pools being dominant in both ecosystems, the Bitcoin one is more fragmented while Bitcoin SV is largely very “unknown”.
Another problem is that the top mining pools are owned by people who are aligned. SV Pool is owned by Craig Wright and Coingeek by Calvin Ayre, meaning that the two allies have 35% of the network.
Now, some people are affirming, perhaps in a malicious way, perhaps not, that Ayre and Wright may own a fair share of these 44% unknown hash power. In that case, they could be way closer to a 51% attack than everybody seems to think. However, this is speculation that is created mostly due to the lack of information that we have about this part of the hash rate.
Centralization And 51% Attacks
In case you do not know, a 51% attack is made when some individual has over half of the hash power and decided to use it to approve malicious transactions. These attacks can be used to take over the network and they make big damages, both financially and to the reputation of a token.
On a decentralized network, you really need decentralization in order to have trust. Centralized power in a network like Bitcoin will certainly not be a trustable one because nobody expects it to exist. A bad user with all this power could basically destroy a token.
Because of this, most people in the community are always so afraid of these attacks, which are actually quite rare, in fact. However, many tokens have suffered them, as they may be rare, but are not impossible to pull off.
As Bitcoin SV has the lowest total hash rate of all the three Bitcoins, it is the one more likely to be attacked. We all hope that this will never actually happen but the unfortunate truth is that these 44% unknown miners are never a good sign.