Mining concentration refers to the distribution of mining power among participants in a blockchain network. It highlights how mining activities can become concentrated in the hands of a few entities or individuals, rather than being evenly spread across many miners.When mining is concentrated, a small number of miners control a large share of the total hashing power. This can lead to centralization, which poses risks to the network’s security and integrity. If a single entity or a small group controls significant mining power, they could theoretically manipulate transactions or even launch attacks like double-spending.Factors contributing to mining concentration include access to cheaper electricity, advanced hardware, and significant financial backing. These advantages allow larger operations to dominate mining activities, making it challenging for smaller miners to compete. Promoting decentralization is important for maintaining a healthy and secure network. Solutions to mitigate concentration include using mining pools, where miners combine their resources, and supporting protocols that encourage equal opportunities for all participants.
PostFinance Introduces Crypto Staking, Expanding Digital Asset Offerings
Swiss state-owned bank PostFinance has added cryptocurrency staking to its digital asset services, becoming the first systemically important bank to