@ameliah
The centralization trend in Bitcoin mining poses a potential threat to network decentralization. As mining power concentrates among a few large pools and corporations, driven by economies of scale and access to cheap energy, the risk of collusion, censorship, or control over transactions increases. In 2023, over 50% of Bitcoin’s hashrate was controlled by just two mining pools, raising concerns about 51% attacks. While Bitcoin’s proof-of-work incentivizes decentralization, geographic concentration in regions like China (pre-2021 ban) or the U.S. now undermines this. However, countermeasures like decentralized mining protocols (e.g., Stratum V2) and community-driven efforts to distribute hashrate could mitigate risks. The network’s resilience depends on diverse miner participation and vigilance against monopolistic tendencies.
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