Two mining basins from Ethereum BUY NOW They continue to dominate the competition and now make up more than half of all network hashrates.
The hash rate is often used as an indicator to assess the strength of a network. However, it is also important to see how distributed the hash rate is. In the case of Ethereum, it is increasingly dominated by some large groups.
Two mining pools now dominate the Ethereum
The Ethereum hashrate has been relatively stable since 2019 Bitcoin BUY NOWThis is likely due to the fact that one day Ethereum will switch to a stock test model.
Although the hash rate has remained constant, there is less and less competition between Ethereum’s mining pools. According to the latest figures, two Ethereum pools now make up more than 50% of the hashrate. Ethermine and Spark Pool are now the two leading mining pools on the network, as ungrubles (@notgrubles) have recently been tweeted.
This is in stark contrast to Bitcoin, where no mining pool is responsible for more than 18% of the total hashrate. However, it should be noted that Bitcoin miners have been criticized for having an overwhelming base in China.
Still, the decline in competition among Ethereum miners is worrying. However, it cannot have a major long-term impact if Ethereum is moved to a shared trial network early enough. Miners are already squeezed: In 2019, Ethereum miners’ revenue fell by 75%.
Ethereum 2.0 is on the move
Ethereum 2.0 is now in production and “Phase 0” in the test network is now live. However, the full launch of Ethereum 2.0 is still a long way off and will likely take years.
For advocates, the participation test model maintains the value “within the system”. Some also argued that 2020 could be the year of deployment, although COVID-19 and the ongoing crisis have thrown a key to these plans.
If ETH 2.0 is the economic change that many of its supporters claim, it is far from going to happen. This makes the dominance of these two mining pools particularly worrying.
As things stand today, Ethereum will continue to mine blocks in the coming years. Therefore, we can expect these two dominant mining pools to further expand their control. The end result could mean that the network is in exceptionally bad condition before passing the participation test. Nothing is certain, however, and it is up to Ethereum to write his own future and lead the revolution in participation testing he desires.
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