Bitmain reaching 51% to dominate in Bitcoin Mining

Bitmain`s mining pools have now control 45% of the computing power on the Bitcoin blockchain, alarmingly close to the dreaded 51% threshold
25 June 2018   1477

That`s a problem because if a firm controls an total majority of the hash rate, it could execute a ‘51 percent attack‘, theoretically jeopardising the whole system. In a blockchain, each block have to be validated by a mining computer, which compete to do so. The only method for a miner to validate a block is to try combinations until one fits, that is, as it unveils the correct code, or ‘hash’. That hash is semi-random; partly randomly formed but also containing within it a reference to the previous hash in the chain. Thus all blocks are joined, and this is how we know that the blockchain is valid.

In a case when a new block is supplemented to the chain, all mining nodes are to validate the next block referencing that block. If there is more than one chain, the nodes will aim for the one with the longest history. But if one group regulates more than half of all the computational power on the system, it can choose an older block in the middle of the chain and begin re-mining everything from there. That chain will overtake the original chain and all original chain-transactions that had took place since the fork will become invalid. It can also deny to accept blocks created by others. 

In July 2014 (when 1 bitcoin was estimated for about $550) a mining pool was named GHash.IO, really exceeded 51 percent. Actually, miners ceased mining with the pool. Responding to community concern, the firm voluntarily limited itself to 39.9 percent of the hashrate, and supposed that other groups follow suit. 

The limit has already been surpassed by Bitmain, and it isn’t even devoting all of its computing power to Bitcoin mining, because it also mines Bitcoin Cash. Also, as the severeness of mining Bitcoin increase and the price falls (as it has recently), smaller firms are likely to be forced out of business. 

The firm, originally from Beijing, has its offices in Amsterdam, Tel Aviv and Zug and has envolved funding from some big names, and by January of this year it already accounted for 41 percent of the computing power on the Bitcoin blockchain. It was strongly criticised in March for releasing a new mining machine that it would soon become obsolete.

tZERO to Launch Bitcoin Trading App

Application itself is being developed by Bitsy; it may also begin to support Ethereum in the future
22 March 2019   149

The security tokens platform tZERO announced plans to launch a mobile application for buying and selling bitcoin. In the future, the application may also begin to support Ethereum,  CoinDesk reports.

According to Saum Noursalehi, CEO of tZERO, applications for iOS and Android devices should be launched in June. Bitsy is developing it, a cryptocurrency start-up that is part of the portfolio of the Overstock venture division of Medici Ventures.

That’s part of the reason we acquired Bitsy — to accelerate time to market for our mobile app. They have an app for trading crypto, primarily bitcoin, in a beta-phase, they built a wallet and key recovery mechanism, and this will be the foundation of the mobile app for tZERO. They are also working on some cool stuff like biometric login. 

Saum Noursalehi

CEO, tZero

According to him, the application will allow you to store cryptocurrency without the need to trust third parties and it will be connected to the network of exchanges through the API. The implementation of this plan will occur through partner tZERO, the institutional trading platform SFox.

In the future, the head of tZERO added, the platform also intends to create its own cryptocurrency vault to meet the demand from users.

The public beta testing of Bitsy wallet started in November 2018. With his help, the Overstock retailer plans to launch Bitcoin sales on its website.