New Long Hash Research Shows Bitcoin is More Decentralized Than Ethereum and Bitcoin Cash
Cryptocurrency decentralization is a major pillar for the digital currency developers. This is why the topic has seen quite a number of crypto enthusiasts and analyst do keen research over the past. Long hash research is among the latest players to share its research stats on the decentralization perspective for Bitcoin, Ethereum & Bitcoin Cash.
Based on the findings, Bitcoin appears to be more decentralized than its counterparts ETH and BCH. This is mainly caused by the mining pools percentage control of the hash rates within these network ecosystems.
The SparkPool_3 & Ethermine Dominance Within The ETH Network
Research done by Long Hash shows that the two mining pools are in charge of more than half of the hash rates within Ethereum’s network. This would simply mean that the ETH altcoin is in a way leaning towards centralization as opposed to decentralization hence almost similar to XRP. Basically, pools that can leverage stronger hash rates are bringing a centralization effect to the nature of crypto coins.
Bitcoin Cash, on the other hand, is more centralized that Ethereum. Statistics show that the two mining pools (BTC.com & BTC.TOP) control almost 55% of the hash rates within the BCH ecosystem. These stats may shed new light into a crypto world that the decentralization aspect is gradually being compromised by powerful mining machines.
Bitcoin’s stats are more attractive than those of its peer competitors. The number one crypto has been on an improvement journey since mid-2018 when 41% of its hash rate was dominated by Bitmain to 29% at the time of research. Two of Bitmain’s mining pools that facilitate this dominance are Antpool & BTC.com. Back then, stakeholders had started to raise concerns about Bitmain’s potential to control over 51% of BTC’s hash rate arguing that it would pose a risk for network participants.
In addition, Bitmain’s performance was on the downtrend in the past 30 days after most participants opted for other mining pool providers within the market. If the company had actually controlled over 51% of BTC’s proof of work consensus, they would be able to confirm fraudulent hash rates. Therefore, the risk attributed to a digital asset like BTC would even be more owing to the veto decision.
Over time, crypto mining has evolved with companies moving in to dominate the networks. Initially, mining pools were well distributed but this has changed as the likes of Bitmain seek more market dominance. However, crypto’s market dynamics are yet to support a dominant player within a specific network given their volatile nature.