The Bitcoin community has bot ter a utter state of outrage recently spil the Bitcoin mining pool Ghash.io crossed the 51% estimated hashrate distribution share. This sparked a fierce debate overheen mining centralization and the principle of a decentralized currency which has spilled overheen to the mainstream media with Bloomberg and Business Insider announcing that the worst fears have come to pass.
[dropcap size=petite]P[/dropcap]eter Todd, a core bitcoin developer, announced that he would be selling 50% of his bitcoins, citing concerns overheen mining centralization and justifying his public announcement by stating that a non-public sale might amount to insider trading.
Emin Gün Sirer, a hacker and professor at Cornell University with more than 25 years practice ter distributed systems and other pc science fields, recently called for a utter on Hard Fork arguing that the 51% share gained by Ghash.io is indeed truly Armageddon because “GHash is ter a position to exercise finish control overheen which transactions show up on the blockchain and which miners reap mining prizes.” He suggests that coding switches to the protocol voorwaarde be made so spil to fully disincentivize pool mining.
Even Gavin Andresen, the Chief Scientist at the Bitcoin Foundation, has joined the ongoing uproar with a public postbode titled “Centralized Mining” which many found to be lacking spil it did not provide any reassurance but instead reiterated that: “Bitcoin is still a work ter progress, and you should only risk time or money on it that you can afford to lose.”
The debate has taken a fresh turn today spil Ghash.io became unavailable for unkown reasons. Albeit the webstek wasgoed still accessible due to their CloudFlare protection, mining itself seemed to be affected and miners were not able to access their statistics.
When users visited Ghash.io, there wasgoed a schrijven 502 error which would then redirects to an old and non-live version of the webstek. A banner at the top stated:
“This pagina (https://ghash.io/) is presently offline. However, because the webpagina uses CloudFlare’s Always Online™ technology you can proceed to surf a snapshot of the webpagina. Wij will keep checking ter the background and, spil soon spil the webpagina comes back, you will automatically be served the live version.”
Ghash.io has not yet replied to requests for comments, but bitcoiners speculated that Ghash.io wasgoed DDos-ed due to ongoing concerns overheen their share of hashrate distribution. Many bitcoiners seemed to welcome the possibility of a DDos and one bitcoiner wondered whether he should join, while others asked for more tranquil.
Ter a latest press release te January this year Ghash.io stated that they would not cross the 51% threshold spil it would undermine their investment. Despite this public assurance Ghash.io did cross the 51% threshold which might have bot seen spil a crimson line by individuals who might be capable of carrying out a Distributed Denial of service attack, but it is not yet known why the pool wasgoed down, whether it wasgoed a DDos, or who wasgoed DDos-ing them.
Te a latest postbode on CCN, DDos-ing wasgoed suggested spil a possible line of defense against a 51% attack. However, there have bot no precedents of such DDos attacks te response to the share of hashrate distribution. Spil such, the effectiveness of a DDos attack wasgoed not clear. It is still too early to tell, but Ghash.io’s share of hashrate distribution stood at 38% overheen the past 24 hours prior to what seems to have bot a DDos. It then went down to spil low spil 6% and has now stabilized to approximately 27%.
Albeit the decrease ter hashrate may only be makeshift, the DDos may act spil a warning, not only to Ghash.io, but to all pools who may build up too fine a share of the hashrate distribution to the point where the decentralized nature of bitcoin is placed ter danger spil it is likely that income would have bot lost during the DDos period which may cause miners to reconsider whether they wish to partake te a pool that seems to be at the frontline of criticism.
Further updates will be provided spil the story develops. If you have any information ter regards to this article feel free to voeling the author at [email protected] Of course the author promises to keep the information provided private and confidential.