AskLeo - Is China's Mining Dominance a Threat for Bitcoin's Decentralized Nature?
It is supposed that Bitcoin is a true decentralized blockchain and that it's the safest network of its kind in this industry, according to experts of this tech and prominent names in the space. I can't debate anything because I simply don't have the knowledge to do so.
I found a piece of news today that was kind of disturbing. According to this report, in 2020 80% of the Bitcoin miners were located in China and that the Chinese government may at some point have influence over the blockchain and transactions on it.
Emin Gün Sirer, a Turkish-American computer scientist and CEO of Ava Labs, a decentralized finance startup, believes the Chinese state could compel miners to block transactions from certain wallets if it chose to. “This is an enormous issue. These miners could receive injunctions that compels them to act in a certain way. The Chinese government would say the money at certain addresses must not move and it compels the Chinese miners to not include certain transactions so they can selectively sensor certain users of a blockchain.”
source
If that would become a reality then how decentralized is the Bitcoin blockchain?... Again, I'm not that tech savvy to be able to discern if this news has any grain of truth in it or not, thus I thought I should ask you guys on Leofinance/Hive.
I don't like this probability at all to be honest, because I'm perfectly aware of the Chinese communist nature and what would that mean if they could get to the point of controlling transactions on the Bitcoin blockchain. Something tells me that it's not possible, but still in a dilemma tbh.
What do you think, Is China's Mining Dominance a Threat for Bitcoin's Decentralized Nature?
Thanks for attention,
Adrian
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Thanks for the enlightenment.
I thought blockchain can never be controlled due to its decentralized nature.
To me, it's not possible.
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It's a bit alarming to know that 80% of the mining power is located in China.
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Let's hope it's not a threat, because for me personally I think it's not. But we cannot underestimate China.
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It could be a problem but I don't think it would affect it much.
If China were to shut down their mining for specific transactions and impact networks, I expect a hit in terms of short-term faith in BTC but I expect other people in the world to start up their own mining networks to ensure it works. At that point it might become the world vs. China for hashing and I have faith the world will win in the end. Though I am not sure how profitable it will be and if they need to add in defenses to the existing protocols afterwards.
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