Bitcoin Mining Pool Centralization Raises Concerns as Foundry USA and Antpool Dominate Market
In a significant development for the cryptocurrency mining industry, recent data shows that Foundry USA and Antpool now control nearly 60% of the Bitcoin mining pool market. This concentration of power has sparked discussions about potential centralization risks in the Bitcoin network, according to Cryptoslate.
Over the past 24 hours, both Foundry USA and Antpool have each mined 41 blocks, accounting for approximately 30% of the market share each. Their combined dominance has left the third-largest pool, ViaBTC, with only about 11% of the blocks mined during this period.
The current situation represents a notable increase from previous years. A year ago, Foundry USA held a 29% share, while Antpool had 25%. Three years prior, their shares were 24% and 20%, respectively, indicating a clear trend towards consolidation.
Foundry USA currently boasts an impressive hashrate of 181 EH/s, while Antpool follows closely with around 140 EH/s. This concentration of computing power has raised eyebrows in the crypto community, with some experts expressing concern about the potential implications for Bitcoin’s decentralized nature.
Bob Burnett, Founder and CEO of Barefoot Mining, highlighted these concerns, pointing to a recent instance where Antpool mined five out of six consecutive blocks between blocks 850448 and 850453.
The dominance of these two pools is further emphasized by their clientele. Many publicly traded Bitcoin miners, including Cipher Mining, Bitfarms, and Hut 8, utilize Foundry USA’s services. Meanwhile, Antpool, based in Beijing and owned by Bitmain (the largest ASIC producer), indicates a significant hash rate concentration in China and the USA.
While a 51% share held by a single mining pool doesn’t necessarily pose an immediate threat, experts warn that the real risk lies in the potential centralization within the pools themselves. As weaker miners exit the network and stronger ones consolidate their positions, this trend towards centralization could present challenges for the future of Bitcoin mining.
It’s worth noting that historical events have shown the resilience of these major pools. During the China mining ban in the summer of 2021, Antpool’s hash rate dominance increased from 10% to 18%, despite an overall decrease in their absolute hash rate.
