Say goodbye to decentralization

[kano]

Heh, you do know why bitfury gets so many orphans right?

Their miners are hopeless.
It's could be as high as 10% wasted ... so a 650PH mine could be throwing away as much as 65PH

My pool has had the misfortune of having a miner with bitfury miners throw away a block.
Bitfury often do themselves, if you look at some of their orphans you'll see why.

Though the actual blame could probably be laid at the feet of Dave also ...

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[notaek]

You cannot just say goodbye to decentralization. Big miners are always advantageous for keeping the network in a most secured state. Nowadays, as per the number of unconfirmed transactions occurring per second, to get them included in a block, it'll definitely need more hashrates. Thus hashrate distribution is increasing exponentially.

That's where PPS mining kicks in for smaller miners. Although the fees are considerably higher than PPLNS, here you get assured payouts from pools whether a block gets confirmed or not. Now if you are feeling lucky, try solo.

[nihilnegativum]

it looks like profits centralize very fast...

[Amph]

funny things is, the network was more centralized when the whole mining game started, than now, so it's actually more decentralized than ever

[j1pvt]

Sill it's pretty scary to think that one single company could own 51% of the hash rate.
I'm not sure I completely understand the extents of it but doesn't it give them absolute power of decision over what is and what isn't recorded on the blockchain and how transactions happen?

There were be always other people who will mine. There were be always other businesses which will compete with Bitfury and will be always someone who will invent another better thing than that which have already Bitfury. As for the blochckchain cannot be made nothing that can affect it. He is totally independent and decentralized. Is the amount of all the transactions made from every person who send bitcoin from all around the world. So nothing can happen to it.

But what happens when all the halving has taken place and we hit the proposed 21 000 000 total bitcoins.
The difficulty is already knocking out the small individuals who are presumably the life and blood of the whole system...
Does the whole currency then get sold back to highest bidder ie: illuminati banksters and we are back to square one again..??
How does mining carry on after that if there are no rewards coming from the blockchain ... ??
How does the whole currency perpetuate into the future ... ??

[mesimpleme]

These are the same questions that I am I pondering, before, even a small person with little resources could compose his small factory mining, now, is watching or worse, pay for join to big cloud mining...

[irritant]

How does mining carry on after that if there are no rewards coming from the blockchain ... ??

transaction fees are also rewards for the miners

[hotcoin010309]

It was only a matter of time before some big bank or investor to take up the "game". They first studied the structure and now control ...

[spazzdla]

Who has 300 Pentahash?

[spazzdla]

It was only a matter of time before some big bank or investor to take up the "game". They first studied the structure and now control ...

How are they going to get the ASIC's??

Think Bitmain, Spondoolies and Bitfury are just going to give up?

[Yakamoto]

It was only a matter of time before some big bank or investor to take up the "game". They first studied the structure and now control ...

How are they going to get the ASIC's??

Think Bitmain, Spondoolies and Bitfury are just going to give up?

The other mining hardware developers might not have enough money behind them if the banks decide to throw considerable amounts of money at the issues. The banks can buy their hardware, they can pay to develop their own mining hardware, they can buy out pools or other miners. It all comes down to a war of attrition.

On the plus side there probably isn't enough need to take over Bitcoin right now, and it would be more profitable to just invest in Bitcoin businesses rather than take control of the Bitcoin economy.

[Blawpaw]

The network has always adjusted itself when facing the 51% potential threat. It's not the first time it happens and won't be the last. bitcoin will survive!

[Amph]

Who has 300 Pentahash?

none because it mean that someone is holding more than 33% of the network, if we talk as a single farm, and pool at best have 20%

well if you want to go by country than chinese have double of that...

[alh]

Personally, I think that the "Too Big To Fail" banks don't care about Bitcoin hardly at all. Until it amounts to $100B or more, it's probably not interesting. Today, BTC might be $11 Billion?

That's two bad trades in a year for JP Morgan.  

Yes, they'll have folks look at it, but I think they have zero interest in trying to "control" it, whatever that might mean. Bitcoin shares a common trait with all fiat currencies. A loss of confidence by those holding it, and there will be a run for the exits to a safer currency. It could easily fall from $500 to less than $100 in a day if folks don't think it's "safe". BTC has no alternative use as do some metals like Gold/Silver/Copper and such.

[romero121]

it looks like profits centralize very fast...

Yeah of-course if bitcoin is centralized the profit will be high and the miners are much benefitted

[romero121]

wow great ..but i think it remain as if no any big bank interfere to the working plan .

Many banks are getting involved in this technology indirectly for their profit. Its just because bitcoin is decentralized tech.

[allthingsbtc]

Decentralization is a relative term vs. the number of users and size of the network.

[cartell0]

Who has 300 Pentahash?

none because it mean that someone is holding more than 33% of the network, if we talk as a single farm, and pool at best have 20%

well if you want to go by country than chinese have double of that...

a single farm can't get never 51% of network ( I think after reading some points of protocols and mining farms)

[Amph]

Who has 300 Pentahash?

none because it mean that someone is holding more than 33% of the network, if we talk as a single farm, and pool at best have 20%

well if you want to go by country than chinese have double of that...

a single farm can't get never 51% of network ( I think after reading some points of protocols and mining farms)

that's not the point, because a pool can easily reach that number, and it was proven in the past with ghash

and anyway if all chinese farm work together and merge their huge farm in the future, for whatever reason they could easily surpass 51%...

[alh]

that's not the point, because a pool can easily reach that number, and it was proven in the past with ghash

and anyway if all chinese farm work together and merge their huge farm in the future, for whatever reason they could easily surpass 51%...

Could you, or somebody else, elaborate on exactly what such a collection of pools would do? I always read about the "dreaded 51% attack" possibility. What exactly would happen? Some kind of double-spend thing?

Are there any nefarious actions that would go undetected for a long period of time?

My simplistic view is that if the block-chain is being improperly manipulated it will eventually get detected. If that happens then there would be a massive loss in confidence of Bitcoin and the currency would essentially collapse as nobody would trust it's "value".

Is that the most dire outcome possible?