Single Wallet Owner Possesses 51% of Hashrate



The NicheHash crypto mining market comprises the bulk of the hashpower on the Dash community. A involved Reddit consumer raised the alarm today.

Single Miner Mining More Than 50% of All Dash Blocks

Source: CoinWarz

Dash has a complete of virtually 1,900 Terrhashes per second at time of writing. Meanwhile, NiceHash is accountable for greater than 1,000 TH/s throughout over 25,000 miners.

Over $2.2 Million Earned by Single Miner

Analysis by the involved Reddit consumer discovered that three of the top addresses over the previous couple of thousand Dash blocks are managed by the identical entity. They write:

This explicit transaction has three of the 4 high addresses as inputs which means one entity controls all three. These three alone collect 53% and extra. You may see this began 6 months in the past/round September final 12 months, and I believe the fourth unknown pool additionally belongs to this entity but it’s seperated on the blockchain. It began to collect rather a lot of hash on the identical time.

The addresses in query are:

Combined, these addresses have mined 26,665 Dash up to now, at time of writing. That is a complete of 573 BTC or $2.2 million at present costs. Yet, the monetary side is the least of anybody’s worries.

51% assaults create vital safety liabilities in decentralized blockchain networks. Charlie Lee not too long ago stated that networks must be vulnerable to 51% assaults for decentralization. Miner centralization threatens networks as effectively, nonetheless.

51% Attack Possible Before Chainlocks

nicehash crypto mining marketplace
NiceHash accounts for almost all of the Dash cryptocurrency’s hashrate.

The Reddit consumer Flenst concludes his put up:

So it’s doable somebody might attempt to carry out a 51% earlier than DASH implements their chainlocks. The actor might begin straight away. Anyone providing a service with DASH should keep watch over the chain so long as this doesn’t change and be very cautious.

He is referring to a latest announcement by the Dash improvement staff that they’re engaged on one thing referred to as “Chainlocks.” In November, Dash stated they’re introducing the brand new characteristic with a view to fight 51% assaults. Such assaults are within the information once more with recent issues surrounding Ethereum Classic. Chainlocks additionally offers with block reorganizations and modifies the “longest-chain” guidelines that Dash inherits from Bitcoin. From Dash Improvement Proposal 8:

When a node encounters a number of legitimate chains, it units the native “active” chain by deciding on the one which has essentially the most amassed work. This is commonly known as the “longest-chain” rule as normally it’s equal to picking the chain with essentially the most blocks.

If each chains have the identical quantity of amassed work (and normally the identical block rely), a choice can’t be made solely primarily based on the longest-chain rule. […] If one other block is then obtained which extends the non-active chain in order that it has essentially the most amassed work, it turns into the lively one. For instance, even when a sequence is at the moment 6 blocks longer than some other chain, it’s nonetheless doable {that a} shorter chain turns into longer and thus the lively one. This is commonly known as a sequence reorganization.

What’s clear is that somebody has invested an enormous quantity of cash into mining Dash with ASICs. Dash’s X11 algorithm as soon as thwarted ASIC improvement. ASIC builders discovered that by including reminiscence to the miners, they had been capable of deal with the X11 algorithm. When this occurred with Monero, builders determined to fork away to a modified algorithm.

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