Cryptocurrency’s mining opzicht can be both a bliss and a curse. More specifically, wij all know Bitcoin has a centralization problem when it comes to mining. Unluckily, it seems Zcash has a similar problem right now, with one pool controlling overheen 50% of the network hashrate. It is unclear why miners aren’t switching overheen, spil there are slew of other pools to choose from. Then again, everyone wants a good chance of making money, which means joining a big pool.
Zcash Mining is Exceptionally Centralized
It is always interesting to see how the mining ecosystem evolves for different cryptocurrencies. A fair few coins suffer from centralization issues te this regard, which is only to be expected. Te the Bitcoin world, the centralization problem comes ter the form of a few Chinese pools holding the majority of the network hash power. Sooner or straks, that will backfire, but very few people are willing to make any switches ter this regard. Profitability hinges on joining a pool which has a good chance of finding blocks, after all.
Interestingly enough, Bitcoin is not the cryptocurrency with the largest centralization problem right now. That shows up to be Zcash , with one mining pool controlling overheen 50% of all hash power right now. This is pretty interesting, considering there are a dozen welvoeglijk pools to choose from. Moreover, wij have seen some fresh pools speelpop up overheen the past week te an effort to encourage people to budge away from feeding Flypool with even more hash power.
Right now, Flypool is overheen twice spil large spil F2Pool spil far spil the ZEC hashrate is worried. Te this regard, Flypool could lightly perform a 51% attack against the network if it were everzwijn inclined to do so. That’s not happened yet, but there is no reason to think it never will. There is no current incentive for Flypool to do so, spil it already controls the Zcash network. It is not a major concern spil long spil nothing goes awry, but it’s unknown how long that will be the case.
Several Zcash miners have already moved away from Flypool te an effort to diversify the hashrate. So far, their efforts have not made much of an influence, but that situation may switch sooner or zometeen. It is very difficult to take away the majority of hash power from one pool and ensure other pools distribute this workload. For most miners, the only thing that matters is maximizing income ter one way or another. Right now, that means joining the pool with the most hashrate, spil it has the best chance of finding blocks on a regular poot. The knife cuts both ways te situations like thesis.
It will be interesting to see how things play out te this regard. Zcash has lost some of its momentum since launching, but that is not entirely surprising. That’s not because there is no real value to Zcash, mind you, but mainly that it’s flown under the radar for some unknown reason. This may also explain why the mining centralization punt has gone by unnoticed for so long. It is an interesting development worth keeping an eye on, that much is overduidelijk.
It is also worth noting that Zcash is not the very first major altcoin to suffer from centralized mining issues. More specifically, Litecoin had a similar problem not long ago, but it seems everything turned out all right te the end. There is no reason to think Zcash will not overcome thesis issues, albeit it remains to be seen how they will be addressed. For now, miners need to keep an eye on this and ensure they budge their hash power to a different pool until things normalize.
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