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Bitcoin Cash [BCH] supporter Jihan Wu comments on reducing mining centralization

Priyamvada Singh

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Bitcoin Cash [BCH] supporter Jihan Wu comments on reducing mining centralization
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On 17th September, Bitmain Founder Jihan Wu participated on a forum of the Subreddit r/BTC, wherein he responded to a comment made by a cryptocurrency researcher named Justin Bons. Bons wrote about centralization in mining, conveying that the rise in the block size is not the reason for an increased centralization. Here, Jihan opposed and commented:

“To reduce the mining pool centralization, reducing the block time can help a lot. Because mining pools have to provide PPS fee mode to its customers due to the popular behavior of hashers. Mining pools then have to bear the risk of block finding volatility, but paying out to customers at a stable rate. So mining pools needs to have very big capital to start, which is a kind of centralization pressure.”

Subsequently, Bons also implied that it is not the miners but the pools they are associated with that run full nodes. According to him, this scenario is analogous to a free market of pools or a representative democracy for miners, where a pool may switch its miners with another pool in seconds, resulting in a change of vote.

On being asked to explain how miners do not run full nodes but pools do, Bons explained that all miners, including the modern ASIC miners, can only function if they are directly connected to a pool. He further added that the issue of centralization does not revolve around mining, but mining pools. He wrote:

“There is no mining centralization. It is more a question of pool centralization. #Bitcoin #BitcoinCash”

Under the same thread, a game designer and blockchain enthusiast Reina Nakamoto also returned an opinion on Bons’ stance. Reina stated that there is no centralization even in mining pools. According to the user, if there are more than 3 pools without one of them having a 51% hashing power, then the mining space is not centralized. Reina also wrote that the issue of decentralization/centralization is seen by others on the basis of their ideologies, making the term unquantifiable.



Jihan Wu’s mining giant Bitmain, which is based out of China, is seen as a threat to the Bitcoin [BTC] mining environment as the company is reportedly approaching 50% of the hashing power. This poses a destructive threat to the Bitcoin ecosystem wherein Bitmain may have enough hashing power to launch a 51% attack on the network in the future.

Bitmain has also been accused to act as a central reserve for Bitcoin Cash [BCH]. Earlier this year, the company released all its Bitcoin funds to buy Bitcoin Cash in return. It was also reported that Bitmain holds over half a billion dollar worth of funds in BCH.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

Bitcoin

John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more

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John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
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Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on Coinbase.com, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!



4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!





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