Thomas Daniels
AntPool, the second-largest Bitcoin (BTC) mining pool, mined seven consecutive blocks on May 17, raising alarms about potential network centralization and security issues within the cryptocurrency community.
During this mining spree, AntPool confirmed 20,686 transactions, generating over 23 BTC, valued at approximately $1.54 million in revenue. This event spanned one hour and 38 minutes, covering block heights 843,898 to 843,904. Data from mempool.space indicates that AntPool accrued 1.283 BTC in fees and 21.875 BTC from block subsidies.
Foundry USA, the largest Bitcoin mining pool, mined the block preceding this sequence and the two blocks following it. Currently, AntPool accounts for 25.48% of all blocks mined in the past week, while Foundry USA commands 31.12% of the network’s hashrate. Combined, these two pools dominate 56.6% of Bitcoin’s mining activities. In October 2023, AntPool briefly challenged Foundry USA’s leadership for three days.
The concentration of mining power between AntPool and Foundry USA underscores the risks associated with centralized mining pools, including vulnerabilities to double-spending and transaction censorship. Observers are increasingly concerned about this power concentration, which threatens Bitcoin’s decentralized ethos.
“Such power concentration poses an existential threat to Bitcoin’s decentralized nature and its foundational principle of trustlessness,” posted TOBTC Trading LLC on social media.
Founded in 2013 by Bitmain Technologies, a leading mining hardware manufacturer, AntPool is based in Beijing.
National Security Concerns Over Crypto Mining
The U.S. government has ordered a Chinese-backed cryptocurrency mining company to halt the construction of a mine in Wyoming. A May 13 executive order signed by President Joe Biden mandates MineOne Cloud Computing Investment and its partners to sell off property near the Francis E. Warren Air Force Base in Cheyenne, Wyoming. The U.S. Committee on Foreign Investment in the United States (CFIUS) collaborated on the order, citing national security risks linked to foreign ownership of land near sensitive military installations, especially nuclear missile bases like Warren AFB.
The executive order requires MineOne to divest its crypto mining facility and remove Chinese-owned equipment from the site within specified timelines to mitigate risks.
Norwegian Regulatory Measures on Crypto Mining
Norwegian regulators have proposed new legislation to tighten regulations on cryptocurrency mining activities conducted by data centers in the country. This pioneering framework in Europe mandates comprehensive registration of data center operators and disclosure of services offered. The Norwegian government, led by Digitalization Minister Karianne Tung and Energy Minister Terje Aasland, emphasizes curbing projects with substantial greenhouse gas emissions, specifically targeting cryptocurrency mining.
Energy Minister Terje Aasland has stated that Norway aims to deter businesses from exploiting the country’s energy resources cheaply, aligning with national environmental objectives.
