Princeton Research Claims China Motivated to “Kill” Bitcoin, Selfish Miners Governing 74 Percent of NetworkA research study published on Oct. 5 claimed growing Chinese influence over the Bitcoin protocol is a “looming threat” to the $114 billion network. The paper alleged that China presents a problem to the security, stability, viability of the pioneer cryptocurrency.
The Case Against ChinaAccording to the paper, which was published by Florida International University and Princeton University, China has strong motives and a regulatory and technologically “mature” capability to launch an attack against the Bitcoin network, owing to the former’s strict economic control rules over the global internet infrastructure. The country is aware of the significant increase in Bitcoin’s value and economic utility, and the implication of disrupting such a vast network.
The paper begins its conjecture by calling out the dominance of Chinese businesses mining Bitcoin, making the protocol “heavily centralized.” Researchers allege that six mining pools control mining–with five located in China–and together, they make up 80 percent of the Bitcoin’s hashing power.
Bitcoin primarily faces a threat from the evil “51 percent attack,” which if executed, could result in the creation of fraudulent side-chains containing transactions that never took place. With much of the hashing power pooled by the Chinese, miners can influence what happens on the Bitcoin network, and perhaps, even spoof transactions to China’s benefits.
Chinese Mining Situation “Unsettling”The research pointed out the five mining pools in China comprise 74 percent of Bitcoin hash power, an evidently “unsettling” situation. Given the country’s harsh policies, control over the network could mean censorship and other damaging attacks.
Blocks mined in China are in proximity to a large share of hash power, meaning validations and consensus are reached faster than blocks elsewhere. In addition, as the managers of mining units can control the inputs of outputs of their rigs, the hashing power is indirectly in control of strict Chinese authorities, who are authorized by law to influence a corporation’s business decisions.
The point mentioned above implies that the Chinese government can wholly-assume control of regional hashing power, giving them an advantage in selecting specific blocks for the ledger, which is essential for 51 percent-styled attacks.
Source:
https://cryptoslate.com/princeton-research-claims-china-motivated-to-kill-bitcoin-selfish-miners-governing-74-percent-of-network/