- Developers of Bitcoin Cash ABC have announced their intention to move forward with implementing the latest version of the plan in the upcoming 0.21.0 release. There are several differences with this version from the initial announcement, including a reduced percentage of the block reward and activation mechanism. There also appears to be a competing fork of the upcoming 0.21.0 upgrade that removes the coinbase reward code . We will continue to monitor this story.
- Coindesk reports that MicroBT, a manufacturer of Bitcoin mining hardware, has eroded incumbent Bitmain’s market share in 2019 by selling over half a million units. As we approach the halvening and hashrate continues to be added at an accelerating pace, we will no doubt see competition in the hardware space heat up even further.
- Crypto researcher Hasu dissects the common arguments warning against the dangers of mining centralization. Not only does he conclude that mining concentration is inevitable, he also makes the argument that it is harmless.
- As we approach the Bitcoin halvening, the mining industry is under pressure from both the uncertainty inherent to such a seminal event as well as the rising costs of doing business. Coindesk published a story detailing US-based mining firm Coinmint’s internal struggles as a result of these factors
- Dragonfly Capital released an interesting breakdown explaining why exchanges continue to list small-cap coins like Bitcoin Gold (BTG) in spite of 51% attacks. (Spoiler: They’re still profitable)
- Ukrainian authorities issued a positive statement regarding the regulation of miners in the country, stating that mining doesn’t require regulatory activity from government oversight bodies.
A few updates this week in the world of mining:
Bitcoin SV (BSV) conducted a hardfork which resulted in a non-trivial number of nodes remaining on an incompatible version. This caused a brief chain split that appears to have been resolved as of this writing.
Researcher Hasu describes a new form of 51% attack called the “Purge” attack in which an attacker with sufficient hashing power replaces a number of the most recent blocks with empty blocks, sending previously confirmed transactions back into the mempool.
The BCH infrastructure fund saga continues this week and more. Here’s your weekly mining update:
As we reported last week, a group of Bitcoin Cash (BCH) miners announced their intention to launch a mandatory developer fund that distributes 12.5% of BCH coinbase rewards to devs. You can read our in-depth writeup here.
This week, we saw an opposition mining group declare and then retract plans to launch a competing BCH pool for like-minded miners who are against the mandatory donation.
Mining was front-and-center this week with a major announcement that sparked some intense debate.
A cartel comprised of the four largest Bitcoin Cash (BCH) mining pools has announced a mandatory donation distributing 12.5% of the coinbase reward to BCH developers over the course of six months. While this type of dev funding strategy is not new, the controversy stems from the mandatory nature of the proposal where the signatories have committed to orphan blocks produced by miners who don’t wish to participate.
It is unclear whether this proposal will be revised in light of the criticisms against it, but we will continue to follow this story closely and provide updates.
Coindesk dropped a comprehensive writeup on the intrigue and maneuvuerings at Bitmain, where BitMain CEO Jihan Wu ousted his long time co-founder and co-CEO Micree Zhan.