Bitcoin Cash network is strongly centralized

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Bitcoin Cash network is strongly centralized
Bitcoin Cash network is strongly centralized

A few weeks after the announcement of the attack on the Bitcoin Cash network, a group of Bitpico hackers reported that altcoin suffers from massive centralization of nodes. A screenshot was published showing that 98% of IP addresses are physically located close to each other, according to the CCN website.

Network BCH annually spends $ 1.2 million on nodes

Then a group of hackers estimated that the launch of each of the nodes cost the Bitcoin Cash network approximately $ 100, while the estimated monthly costs were $ 100,000. According to their data, the number of all Bitcoin Cash network nodes operating at Alibaba facilities is 49% (1/2 of 98%). Further confirmation of the high degree of centralization of the network included the recent movement of the network.

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However, Bitpico’s claims did not pass without any problems with some users publishing inconsistent statistics. According to bchnodes.online, for example, Bitcoin Cash nodes are currently active in 48 countries. The highest concentration of nodes is in the United States, where approximately 28.26% of nodes are located, followed by China with 22.54% of nodes. Germany ranks third with 10.95% of the nodes.

However, Bitpico members are not alone in accusing the Bitcoin Cash network in the absence of decentralization. Last year, in December, Bitcoin developer Nick Szabo expressed similar accusations. Earlier this year, the project manager of Identity Division, Microsoft, referred to Bitcoin Cash, criticized the increase in the size of the blocks as anti-decentralization. At that time, the token planned to increase its blocks fourfold from 8 MB to 32 MB, and, ultimately, it was implemented in May.