GHash.IO Statement Regarding 51% Threat

[ghash.io]

Considering Bitcoin protocol operation and situation within the mining processes, GHash.IO, as the leading mining pool, would like to make a voluntary statement.

Based on the closed round table discussion, which took place on July 9th in London, GHash.IO states that it will not exceed more than 39.99% of the overall Bitcoin hashrate. If GHash.IO approaches the respective border, it will be actively asking miners to take their hardware away from GHash.IO and mine on other pools

None of the existing technical solutions against the 51% attack threat is able to solve the problem in a long-term perspective, taking into account interests of existing mining pools, individual miners and Bitcoin community. Thus, Bitcoin adherents should focus on temporary acts until the lifetime solution is found.

To make sure the respective solution appears in the nearest future, GHash.IO and CEX.IO are initiating a committee, which will consist of major Bitcoin market players, mining pools and other voluntary Bitcoin companies, with the purpose of accelerating and motivating developers to find a technical solution for the 51% threat by accumulating funds and directing them to this process. An original policy document, which describes operational processes of the committee, will be presented shortly. The committee will drive closer communication and cooperation between developers working on the Bitcoin protocol and solving the 51% issue, and businesses, highly interested in expanding the industry, and promote Bitcoin to a broader audience.

With this statement, we invite other mining pools to become more transparent to the community, issue similar statements from their sides and declare that they won’t overcome 39.99% of the Bitcoin hashrate as well. We believe that mining pools should support the statement, since any of them can possibly take leading positions and appear on GHash.IO place.

We also do encourage Bitcoin market players to join the upcoming committee, assist in supporting Bitcoin developers, actively participate in the Bitcoin community, become ultimately transparent, join forces for developing Bitcoin and promote cryptocurrency to the world.

Our statement is available to view on our blog: http://blog.cex.io/official-statement-on-51-threat-and-closed-round-table/

A summary from the round table discussion can be viewed and downloaded here: http://www.scribd.com/doc/234153249/CoinSummit-Bitcoin-Meeting

[armin22]

Stop posting before you 51 the forums.

[zhinkk]

Stop posting before you 51 the forums.

Was that a joke? I really appreciate this post. You guys are making a step towards improving and it is showing.

[philipma1957]

Considering Bitcoin protocol operation and situation within the mining processes, GHash.IO, as the leading mining pool, would like to make a voluntary statement.

Based on the closed round table discussion, which took place on July 9th in London, GHash.IO states that it will not exceed more than 39.99% of the overall Bitcoin hashrate. If GHash.IO approaches the respective border, it will be actively asking miners to take their hardware away from GHash.IO and mine on other pools

None of the existing technical solutions against the 51% attack threat is able to solve the problem in a long-term perspective, taking into account interests of existing mining pools, individual miners and Bitcoin community. Thus, Bitcoin adherents should focus on temporary acts until the lifetime solution is found.

To make sure the respective solution appears in the nearest future, GHash.IO and CEX.IO are initiating a committee, which will consist of major Bitcoin market players, mining pools and other voluntary Bitcoin companies, with the purpose of accelerating and motivating developers to find a technical solution for the 51% threat by accumulating funds and directing them to this process. An original policy document, which describes operational processes of the committee, will be presented shortly. The committee will drive closer communication and cooperation between developers working on the Bitcoin protocol and solving the 51% issue, and businesses, highly interested in expanding the industry, and promote Bitcoin to a broader audience.

With this statement, we invite other mining pools to become more transparent to the community, issue similar statements from their sides and declare that they won’t overcome 39.99% of the Bitcoin hashrate as well. We believe that mining pools should support the statement, since any of them can possibly take leading positions and appear on GHash.IO place.

We also do encourage Bitcoin market players to join the upcoming committee, assist in supporting Bitcoin developers, actively participate in the Bitcoin community, become ultimately transparent, join forces for developing Bitcoin and promote cryptocurrency to the world.

Our statement is available to view on our blog: http://blog.cex.io/official-statement-on-51-threat-and-closed-round-table/

A summary from the round table discussion can be viewed and downloaded here: http://www.scribd.com/doc/234153249/CoinSummit-Bitcoin-Meeting

Thank you I appreciate this.  I have always kept a bit of hash with you.  A suggestion offer a server option that awards to the block maker only.

If 10 ph of hash gets tossed at it that would keep you under 39% since it is as if all that hash is solo mined.
I have posted asking for a block maker takes all option in the pools section.  Every major pool has turned it down.  If you make the offer with a reasonable fee 25 btc to the block maker .  With the rest  of the merged coins and btc transaction fees  to  cex.io.  I think you would get many th /ph of hash .  If it does not work you can end it.

Should be a money maker for you.  It also allows us a safe reliable payer of blocks to manage us miners that want the solo option.

[ghash.io]

  ***Dear miners, we are approaching 39.99% of the Bitcoin hashrate. Please, move your mining hardware to other pools. Thank you for understanding!***

[jonnybravo0311]

It's great that GHash.io is making this statement; however, what is it that they are doing to actively prevent this from happening?  As the pool's hash rate approaches 40%, you're asking the community to move to another pool.  What if they don't?

There is nothing actually being done by GHash.io here.  Sending out tweets and posting in the forum requires MINERS to be proactive.  It's time for the POOL to take action.  Check out what BTCGuild does... might want to consider some similar approach.

[byt411]

The actual solution would be to deny new connections once it has reached the limit it wants to. That way, there is no new hashpower. Their current policy is to send out messages and warnings, but that is useless.
Another option is to disconnect all miners, and only the ones that reconnect quickest will be able to stay. They can also increase fees to reduce hashrate.

[jonnybravo0311]

The actual solution would be to deny new connections once it has reached the limit it wants to. That way, there is no new hashpower. Their current policy is to send out messages and warnings, but that is useless.
Another option is to disconnect all miners, and only the ones that reconnect quickest will be able to stay. They can also increase fees to reduce hashrate.

All viable potential solutions.  What they are doing now is no solution at all.

[philipma1957]

no all they need to do is put you in a    bitsolo.net   or solopool.net type server
type section  when they get over 38 percent.  auto notify you that you are now solo mining and giving you a chance to go to another pool or continue to solo mine.

 

even if another 10% is in that section they are all solo-mining (thus not causing the 51% danger)   not a difficult solution for them to offer.

 most will not want to solo mine and will go to btcguild or  bitminter or eligus or slush

[jonnybravo0311]

no all they need to do is put you in a    bitsolo.net   or solopool.net type server
type section  when they get over 38 percent.  auto notify you that you are now solo mining and giving you a chance to go to another pool or continue to solo mine.

 

even if another 10% is in that section they are all solo-mining (thus not causing the 51% danger)   not a difficult solution for them to offer.

 most will not want to solo mine and will go to btcguild or  bitminter or eligus or slush

I would think implementing a forced redirect to another pool would be more complex than simply not allowing a connection at all.

[byt411]

no all they need to do is put you in a    bitsolo.net   or solopool.net type server
type section  when they get over 38 percent.  auto notify you that you are now solo mining and giving you a chance to go to another pool or continue to solo mine.

 

even if another 10% is in that section they are all solo-mining (thus not causing the 51% danger)   not a difficult solution for them to offer.

 most will not want to solo mine and will go to btcguild or  bitminter or eligus or slush

I would think implementing a forced redirect to another pool would be more complex than simply not allowing a connection at all.

Even if there is a forced redirect, that hashrate is still under Ghash.io's control, so that makes no sense at all. Most miners have failover pools, so denying connections is fine.

[DrG]

The actual solution would be to deny new connections once it has reached the limit it wants to. That way, there is no new hashpower. Their current policy is to send out messages and warnings, but that is useless.
Another option is to disconnect all miners, and only the ones that reconnect quickest will be able to stay. They can also increase fees to reduce hashrate.

This is probably the best solution.  We ask end users to control themselves and this of keeping the network distributed.  If they fail to do so then it is up to the pool op to see a workaround (assuming ghash.io truly doesn't want to see 51%).  Don't allow any new connections.  Other coins already do this when they get above 35% on some pools, this should have been implemented some time ago.

[jonnybravo0311]

The actual solution would be to deny new connections once it has reached the limit it wants to. That way, there is no new hashpower. Their current policy is to send out messages and warnings, but that is useless.
Another option is to disconnect all miners, and only the ones that reconnect quickest will be able to stay. They can also increase fees to reduce hashrate.

This is probably the best solution.  We ask end users to control themselves and this of keeping the network distributed.  If they fail to do so then it is up to the pool op to see a workaround (assuming ghash.io truly doesn't want to see 51%).  Don't allow any new connections.  Other coins already do this when they get above 35% on some pools, this should have been implemented some time ago.

Most, if not all, of us are saying exactly the same thing... that the POOL needs to take action.  Simply sending out tweets and posting in forums asking miners to pretty please with sugar on top stop mining on the pool is only the first step, and it should be done when the pool hits 35%.  When the pool hits 39.99% simply deny connections.  51% problem is solved.

[-ck]

Quoting myself for relevant content here:

The way they make announcements to a wide audience without ever communicating directly with any of the users here on the forums reminds me of the smug behaviour of deepbit during its dying/quietly fading days but in an even worse manner showing what looks like a complete lack of respect to miners. Compare their communication to Eleuthria's of BTCGuild who has continually responded to almost every single comment no matter how mundane.

Users have more power than they think and the bitcoin mining community at large has held many groups to task over the last few years and it remains the responsibility of users to continue protecting other users and bitcoin. The reason ghash did not reach 51% was because of the many warnings posted here and elsewhere. While you're all complaining that a simple announcement by ghash to tell miners to direct their hashes elsewhere is nowhere near enough of a total solution to the possible destabilisation of the network by them receiving a majority of the hashrate, bear in mind the only reason they have made this announcement is because of continued pressure by the community and it should be seen as a major milestone, but I agree we must not become complacent by this one step alone.

[PolarPoint]

Posting warnings here is useless. They should raise fees and start disconnecting slower miners.

[dlowings]

I have my doubts…. The day before they were about to crack the 51% total, they were sending out spam email asking people to jump in and help them… That shows me they had clear intent… No need to go any further then that .

[jonnybravo0311]

Quoting myself for relevant content here:

The way they make announcements to a wide audience without ever communicating directly with any of the users here on the forums reminds me of the smug behaviour of deepbit during its dying/quietly fading days but in an even worse manner showing what looks like a complete lack of respect to miners. Compare their communication to Eleuthria's of BTCGuild who has continually responded to almost every single comment no matter how mundane.

Users have more power than they think and the bitcoin mining community at large has held many groups to task over the last few years and it remains the responsibility of users to continue protecting other users and bitcoin. The reason ghash did not reach 51% was because of the many warnings posted here and elsewhere. While you're all complaining that a simple announcement by ghash to tell miners to direct their hashes elsewhere is nowhere near enough of a total solution to the possible destabilisation of the network by them receiving a majority of the hashrate, bear in mind the only reason they have made this announcement is because of continued pressure by the community and it should be seen as a major milestone, but I agree we must not become complacent by this one step alone.

I absolutely agree that we should not become complacent.  As you point out, the community at large has some power, and also has responsibility.  Yes, we as a community of miners are actively keeping an eye on things, pointing out areas that require attention, etc.  The pool operators are also responsible for taking proper action.  The warning message is certainly a great start.  It is only that, though: a start.  Further action needs to be taken by the pool.  If GHash.io truly means what they say, then such action would be taken by them.

Posting warnings here is useless. They should raise fees and start disconnecting slower miners.

How is disconnecting slower miners the solution?  What is considered "slow"?  Wouldn't that just encourage faster miners to then connect since they don't have to be concerned?  I'm also not too sure about the raising fees proposition.  What does that do except get GHash.io richer?  They buy more hardware, have more "cloud" mining on cex.io.

[windpath]

  ***Dear miners, we are approaching 39.99% of the Bitcoin hashrate. Please, move your mining hardware to other pools. Thank you for understanding!***

  ***Dear ghash miners, they are approaching 39.99% of the Bitcoin hashrate AGAIN . Please permanently move your mining hardware to other pools. Thank you for understanding!***

[jjc326]

Quoting myself for relevant content here:

The way they make announcements to a wide audience without ever communicating directly with any of the users here on the forums reminds me of the smug behaviour of deepbit during its dying/quietly fading days but in an even worse manner showing what looks like a complete lack of respect to miners. Compare their communication to Eleuthria's of BTCGuild who has continually responded to almost every single comment no matter how mundane.

Users have more power than they think and the bitcoin mining community at large has held many groups to task over the last few years and it remains the responsibility of users to continue protecting other users and bitcoin. The reason ghash did not reach 51% was because of the many warnings posted here and elsewhere. While you're all complaining that a simple announcement by ghash to tell miners to direct their hashes elsewhere is nowhere near enough of a total solution to the possible destabilisation of the network by them receiving a majority of the hashrate, bear in mind the only reason they have made this announcement is because of continued pressure by the community and it should be seen as a major milestone, but I agree we must not become complacent by this one step alone.

I absolutely agree that we should not become complacent.  As you point out, the community at large has some power, and also has responsibility.  Yes, we as a community of miners are actively keeping an eye on things, pointing out areas that require attention, etc.  The pool operators are also responsible for taking proper action.  The warning message is certainly a great start.  It is only that, though: a start.  Further action needs to be taken by the pool.  If GHash.io truly means what they say, then such action would be taken by them.

Posting warnings here is useless. They should raise fees and start disconnecting slower miners.

How is disconnecting slower miners the solution?  What is considered "slow"?  Wouldn't that just encourage faster miners to then connect since they don't have to be concerned?  I'm also not too sure about the raising fees proposition.  What does that do except get GHash.io richer?  They buy more hardware, have more "cloud" mining on cex.io.

I believe that raising fees did in fact work on another pool back before GHash was so popular.  I think it was about 1.5 years ago.  At some point when fees are rising, it just doesn't make sense for miners to be there, and GHash has the incentive to raise fees because it will make them more money. 

[jonnybravo0311]

Quoting myself for relevant content here:

The way they make announcements to a wide audience without ever communicating directly with any of the users here on the forums reminds me of the smug behaviour of deepbit during its dying/quietly fading days but in an even worse manner showing what looks like a complete lack of respect to miners. Compare their communication to Eleuthria's of BTCGuild who has continually responded to almost every single comment no matter how mundane.

Users have more power than they think and the bitcoin mining community at large has held many groups to task over the last few years and it remains the responsibility of users to continue protecting other users and bitcoin. The reason ghash did not reach 51% was because of the many warnings posted here and elsewhere. While you're all complaining that a simple announcement by ghash to tell miners to direct their hashes elsewhere is nowhere near enough of a total solution to the possible destabilisation of the network by them receiving a majority of the hashrate, bear in mind the only reason they have made this announcement is because of continued pressure by the community and it should be seen as a major milestone, but I agree we must not become complacent by this one step alone.

I absolutely agree that we should not become complacent.  As you point out, the community at large has some power, and also has responsibility.  Yes, we as a community of miners are actively keeping an eye on things, pointing out areas that require attention, etc.  The pool operators are also responsible for taking proper action.  The warning message is certainly a great start.  It is only that, though: a start.  Further action needs to be taken by the pool.  If GHash.io truly means what they say, then such action would be taken by them.

Posting warnings here is useless. They should raise fees and start disconnecting slower miners.

How is disconnecting slower miners the solution?  What is considered "slow"?  Wouldn't that just encourage faster miners to then connect since they don't have to be concerned?  I'm also not too sure about the raising fees proposition.  What does that do except get GHash.io richer?  They buy more hardware, have more "cloud" mining on cex.io.

I believe that raising fees did in fact work on another pool back before GHash was so popular.  I think it was about 1.5 years ago.  At some point when fees are rising, it just doesn't make sense for miners to be there, and GHash has the incentive to raise fees because it will make them more money. 

BTCGuild did it.  Do we really want GHash.io to have even more funds to purchase more hardware, to sell more cloud mining, to make even more?  Vicious circle there.  Of course, of all the proposals, they are most likely to adopt the increased fees since it nets them more BTC