Bitmain's Hashpower to Fall Significantly

Now the community don't need to fear possible 51% attack at Bitcoin network again
04 February 2019   633

The share of the Bitmain-controlled mining pools of BTC.com and Antpool in the total bitcoin hash rate is about 29%.

According to analysts of The Block, in the first half of last year, the total hashrate of these two pools was 42%. If we take into account the pool ViaBTC, the main investor of which is Bitmain, then a year ago the Chinese giant could control at least 50% of the hashrate. This, in turn, caused fears in the crypto community about a possible “51% attack” on the Bitcoin network.

Now this threat is not as relevant as before, because Bitmain has actually lost the status of a mining monopolist. In confirmation of this, The Block provides a graph in which there is an obvious decline in the influence of Bitmain-controlled pools:

The share of hash-sites in Bitmain-controlled pools is now at the level of mid-2017
The share of hash-sites in Bitmain-controlled pools is now at the level of mid-2017

Obviously, the Chinese mining giant is going through hard times. It was previously reported that Bitmain suspended operations in Texas and is closing its office in Amsterdam. The company also undergoes a major reorganization, accompanied by a reduction in staff.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   99

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.