These Two Mining Companies Now Control Over 50% of Bitcoin Hashrate

By admin On Aug 26, 2024

Concerns are mounting within the crypto community about Bitcoin’s increasing centralization, which some fear could threaten the foundational principles of the world’s first digital asset.

Recent data from BTC.com reveals that two mining pools — Foundry USA and AntPool — now control approximately 57% of Bitcoin’s total network hashrate.

Foundry and AntPool Dominate Bitcoin Mining Pools

Bitcoin mining pools are collaborative networks where individual miners combine their computational power to improve the likelihood of mining a block. After deducting maintenance fees, rewards are distributed among participants based on their contributed hashing power.

Over time, these pools have gained popularity, offering a steadier income compared to the unpredictable rewards of solo mining. However, the landscape has become increasingly dominated by Foundry and AntPool, which are now fierce competitors. Data from BTC.com indicates that the total Bitcoin network hashrate is around 651 EH/s, with Foundry contributing 215.79 EH/s and AntPool 153.55 EH/s.

Bitcoin Mining Pools. Source: BTC.com

Some experts warn that the rivalry between Foundry and AntPool could have geopolitical ramifications. Foundry USA, owned by Digital Currency Group — the parent company of Grayscale — aligns with US interests. In contrast, AntPool, operated by China’s Bitmain Technologies, reflects Chinese influence.

The growing centralization of Bitcoin mining raises concerns about the cryptocurrency’s future. Bitcoin developer Luke Dashjr has previously cautioned against the dangers posed by large mining pools. He argues that centralization jeopardizes Bitcoin’s decentralized nature, potentially leading to censorship and control issues.

So, if a single pool were to control more than 50% of the network hashrate, it could potentially launch a 51% attack, undermining the network’s integrity. While no single pool currently holds such power, the concentration of influence among a few pools has already led to instances of transaction censorship on the Bitcoin network.

Many mining pools are subject to regulations requiring them to adhere to economic sanctions. For example, in 2023, F2Pool censored transactions in compliance with the Office of Foreign Assets Control (OFAC) list but later reversed this action following backlash from the Bitcoin community.

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