AntPool And Foundry Control Over Half Of BTC Mining Pools

Concerns are rising within the crypto community about the increasing centralization of Bitcoin (BTC), which some fear could undermine the fundamental principles of the flagship cryptocurrency. Recent data by BTC.com shows that two mining pools, Foundry USA and AntPool, now control about 57% of the total Bitcoin Network hashrate. Growing Influence And Geopolitical Concerns Bitcoin mining pools are collaborative networks where miners combine their processing power to increase their chances of mining a block, with rewards distributed based on contribution. These pools have become popular due to their stable income compared to solo mining. However, Foundry and AntPool now dominate the space, with Foundry contributing 215.79 EH/s and AntPool 153.55 EH/s out of a total network hashrate of 651 EH/s. Experts also warn that the competition between Foundry and AntPool could have geopolitical implications. Foundry USA, part of Digital Currency Group (DCG), aligns with US interests, while AntPool, operated by Bitmain Technologies, represents Chinese influence. Risks of Centralization The centralization trend raises concerns about the future of Bitcoin and crypto as a whole. Developer Luke Dashjr has warned that large mining pools could compromise the decentralization aspect of BTC, potentially leading to issues like censorship. If a pool gained over 50% of the hashrate, it could execute a 51% attack. Although no pool currently holds such power, the concentration has led to instances of transaction censorship. Additionally, mining pools must comply with economic sanctions. For example, in 2023, F2Pool censored transactions to adhere to the Office of Foreign Assets Control (OFAC) list but later reversed this decision after community backlash. There is also concern that other countries are entering the crypto mining sphere which could further contribute to increased centralization.