Bitcoin Mining: What does the data tell us about Hash Rate, and decentralism?

the Coin Metrics has conducted a study of Bitcoin Mining to a comprehensive Test. The authors, in particular, on the distribution of the Hash Power, as well as the historical development of the dominance of different Mining Pools. It turns out that Mining is a very competitive field of business – and that is good news.

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8. January 2019TeilenFacebookTwitterLinkedInxingemail

Bitcoin Mining is the heart of the network. Miners confirm transactions, and to ensure, through the compute-intensive to Solve the cryptographic "puzzles" for the security of the network. To throw from time to time on the Status quo of Bitcoin mining, and as such should belong to the Routine of every crypto-enthusiast. Should be formed under the Radar of an increasing centralization of mining, it would be a warning signal, because the network is only secure as it is sufficiently decentralized. 51% attacks are not part of purely happen to be one of the major vectors of attack.

Fortunately, the transparency of the Bitcoin Protocol ensures that all data – including that of the mining – are open and accessible. You have to wear them just yet. Exactly this has been done by the Team of Coin Metrics.

How it looks under the hood of Bitcoin currently? How has changed the structure and distribution of Hash Power over time? In the study, the authors relied primarily on Open-Source data from Bitcoinity, and BTC.com.

We have summarized the most important results.

the distribution of The Hash Power

Bitcoin Mining is initially in the Overview. The distribution of the Hash Rate in the last three years has changed, illustrated in the following graphic.

the distribution of The Hash Rate in the period 2016 to 2018.

this, However, is still accurate. Coin Metrics showed the analysis of the data from the last three years are not satisfied – they wanted the big picture. For this reason, the authors Blockchain Explorer such as block chair began on clues to investigate on the Mining Pools. In many cases, this is easy: Miner, propagate a new Block to the network successfully, can record therein, as desired data. In the meantime it has a certain Convention, that Mining Pools identify with this entry.

Then the following picture:

pay attention to the results you should put this on the fluktuative structure of Bitcoin mining. To Coin Metrics:

write "The striking conclusion from the all-time Chart, how fickle big Mining Pools: a swimming Pools, the controlled, once a significant share of the bitcoin Hash Rate rich – BTC Guild, GHash, BTCC – are now gone."

The Mining seems to be a contested field of business. Only Slushpool and F2Pool seem to be able to Long-term on-the-market claim.

top tab disappears from the face of the

to the eternal rank list of Blockfünde in the network, Coin Metrics, takes a look. Accordingly, F2pool is currently a total of 43.657 blocks prior to Antpool with 40.304 blocks. This does not mean necessarily that these two Pools have also gemint the most Bitcoin. Let us remember: The Coinbase Reward, so the main entlohung for the Miner, is halved about every four years.

As you can see in the following graphic, at the top of the list with BTCGuild Pool this rank list has set the operation for a long time.

conclusion

About the Status quo of the mining can be at the moment without a worry. The distribution of the Hash Rate is sufficiently decentralized – a worrying dominance is not observed. In addition, competition is also here the business. Because even if declining yields, due to the low rates may lead to some miners have to fight, is likely to fill the new market participant resulting gaps in the market grateful.

For the Proof-of-Stake method, BTC has produced an ECHO, a Podcast episode.