Two mining pools onare continuing to dominate the competition and now make up over half of the entire hashrate for the network.
Hashrate is often used as an indicator to judge the strength of a network. However, it is also important to look at how distributed this hashrate is. In the case of Blockchain is a digital ledger that’s used for storing data on several servers across the world in a decentralized, trustless… More, it is becoming more and more dominated by a few major pools.
Two Mining Pools Now Dominate Ethereum
Ethereum’s hashrate has remained relatively steady since 2019. Unlike Proof of work and proof of stake are both ways of achieving trustless and distributed consensus on the blockchain. Many… More consensus model., it has stayed within a certain range after peaking in the middle of 2018. This is probably because Ethereum will someday be transitioning to a
Despite the hashrate staying constant, there is now less and less competition among mining pools on Ethereum. According to the latest numbers, two Ethereum pools now account for over 50% of the hashrate. Ethermine and Spark Pool are the two leading mining pools on the network now, as ungrubles (@notgrubles) recently tweeted.
This is in sharp contrast to Bitcoin, where no mining pool is responsible for more than 18% of the total hashrate. However, it should be noted that Bitcoin’s miners have nonetheless been criticized for being overwhelmingly based in China.
Regardless, the declining competition among miners on Ethereum is concerning. However, it may not have much of an impact in the long-term if Ethereum moves to a proof-of-stake network soon enough. Miners are already getting squeezed: in 2019, miners on Ethereum saw their revenues plummet by 75%.
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