Bitmain on its way to 51% control over BTC Mining
Bitmain, the world’s largest manufacturer of ASIC chips and mining rigs, is currently bringing some issues to the crypto community as it becomes more dominant in bitcoin mining. By combining the combined market share of two large BTC mining pools that Bitmain currently owns, Antpool and BTC.com, we can see that the company is not far behind having 51% control of the entire network.
At the moment, the company is lagging 9% behind this target, but there are concerns that Bitmain could use its Bitcoin cash hashing power, which uses the same PoW consensus algorithm to bridge this gap.
What does that mean?
The concern here is that if a single company controls a 51% majority of the entire mining pool, it leaves the entire blockchain network open for a range of manipulative issues, including duplication of spending and malicious control over transactions.
Superficially, this seems unlikely to Bitmain, given the $ 3-4 billion of profits the company reported last year, but when Bitmain breached a vulnerability, the attackers had control over the Bitcoin network.
An attack like this would give hackers control of all future block creations, but new bitcoins could not be created artificially due to the nature of DLT. Attackers will find it increasingly difficult to manipulate blocks that have already been captured in the general ledger, especially those that were later created. For this reason, an attack of 51% would not necessarily be enough to bring down the network itself. Excessive double spending could, however, lead to a total collapse of market confidence and reduce the cryptocurrency.
This is not the first time that this threat has affected the Bitcoin network. In July 2014, Ghash.io outperformed BTC by 50%, but the miners unanimously decided to reduce their market share to prevent the likelihood of such an attack. However, not all mining pools have the same degree of foresight, as two Ethereum-based blockchain networks, Krypton and Shift, were both 51% attacked in August 2016.
Alipay Hong Kong launches blockchain remittance service for Philippines
Ant Financial, the payment affiliate of Chinese e-commerce giant Alibaba, has launched a blockchain-based cross-border settlement service for consumers.
It will initially be rolled out for consumers sending funds between Hong Kong and the Philippines.
By integrating its AlipayHK service with GCash – a Philippines-based mobile payment service – using blockchain tech, Ant Financial says the service will save users from having to go to intermediaries and that it will settle their transactions within “seconds.”
Tether issues $250M
A major development for Tether has just been reported – the stablecoin has just issued $250 million.
This latest issuance now puts the total supply of Tether (USDT) at over $3 billion.
Litecoin founder Charlie Lee tweeted to his 781,000 twitter followers that such moves usually precede a price hike:
“Generally, this has been a precursor of price going up. Tether gets printed when people deposit USD and get USDT back. This USDT will then be used to buy crypto. This is similar to someone depositing $250MM to exchanges. Of course, that doesn’t mean they will buy right away. DYOR”
Kraken Daily Market Report for 24.06.2018
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