By Bentley Kapoor (India)
A new analysis from TokenAnalyst raised the question about the security and viability of the Bitcoin network and found that the infrastructure and hash rate of Bitcoin has become more centralized than before.
The analysis stated that there are around five companies that are currently controlling 49.9% of the total mining power of the blockchain network. So this new analysis from TokenAnalyst raised concerns that the Bitcoin blockchain network is vulnerable to a 51% attack.
Simon Dingle, a blockchain expert, has disproved this analysis of TokenAnalyst that Bitcoin is vulnerable to a 51% attack and said that there is no single reason that prompts us to fear a 51% attack and he explained various factors that are preventing it from happening.
Miners work in consensus with Node Operators
The blockchain expert said that miners do not set the rules of the network on their own rather they have to work in consensus with node operators for this purpose. As the expert stated:
“Firstly, Bitcoin miners alone do not make the rules for the network, but also have to work in consensus with node operators who do not earn block rewards and act as enforcement of network protocols. Miners cannot change the rules of the network without node operators agreeing.”
Also read:Simon Dingle then asserted that these companies that are mentioned in the analysis are basically the mining pools that are used by Bitcoin miners around the world to combine their resources and share in the profits. Miners also have the option to leave the pool whenever they want. He added:
“Each pool consists of many miners that can choose to leave the pool at any time and affect the voting power of the collective. It is hard to imagine a situation where these companies could firstly agree with each other to attack the network, as they have no incentive to do so, and then also convince all of the miners they represent to follow suit.”
51% attack needs a longer period of time
After that Dingle talked about the viability of the 51% attack and said that this is another problem that it faces. According to the blockchain expert, there is a need for an extended period of time to run the mining hardware and still there will be no surety of certain results. Simon even calls it a gamble in which you have the probability of losing a large part of computing sources of the world.
In the concluding comments, Simon Dingle stated:
“The Nakomoto consensus has proven bulletproof, and I see that not much will change from this perspective until mining premiums dry up completely in the 22nd century. Even then, the network was designed to take new paradigms into account and encourage miners to continue processing transaction blocks.”
Dingle claimed that Bitcoin is still decentralized and has the ability to resist a 51% attack.
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