China accounts for more than half of the world’s bitcoin mining capacity. But Jameson Lopp, co-founder and CTO of Casa, quelled the fears that Chinese miners pose a threat to Bitcoin in a blog post on August 9th.
Though a lot of people have expressed concern about the high concentration of hashing power in China, Loop even pointed it out In the event of a 51% attack on Bitcoin, the attackers would be limited in their options.
Explained that attackers cannot arbitrarily steal Bitcoin or change consensus rules. You cannot roll back valid transactions. The only thing you can do is spend twice your own bitcoin.
The best way for a 51% attacker to make the most of it is to withdraw from cryptocurrency exchanges with “censorship-resistant cryptocurrencies or stable coins”. However, this comes with major problems in terms of withdrawal limits and the demands on your customers between exchanges. Nor does it make economic sense for attackers to throw away a large part of Bitcoin at once:
“The value of the bitcoin they still have after the attack will likely have dropped significantly so that a large successful attack could result in a shot in the foot.” Better not to make a mistake in accessing the exchange you are targeting. For example, a hacker returned $ 25 million in stolen funds after losing his IP address. “
Bitcoiner to the rescue
Loop believes that it would be nearly impossible for a nation state to have complete control over mining facilities and that Bitcoin advocacy groups would not take immediate, immediate action against such action.
Even if the attack moves from targeting individual mining facilities to a lighter mining attack, 70% of hashing performance in China is coordinated by fewer than 10 mining pools. Changing mining pools is incredibly easy for miners. It’s also difficult to achieve discreetly There are many independent companies that do They issue warnings against malicious actors on social media.
“It is hard to imagine that a government actor could have hashing power quickly and quietly enough to carry out a sustained attack lasting more than a few hours.”
According to Lopp The reason the hash power has been concentrated in China since 2015 is because of the fact that most of the mining chips are made in Asia. The most important is that China also has “an abundance of cheap energy”, It has the political and economic stability to facilitate mining infrastructure.
The loop was completed with the noticeAny large-scale mining attack will be “limited in effectiveness”. As Cointelegraph previously reported, In the long term, global competition in producing cheaper power sources and semiconductors will continue to increase, and China’s dominance in mining will not last.