AntPool, the second-largest Bitcoin (BTC) mining pool, mined seven blocks in a row on May 17, sparking concerns within the cryptocurrency community about network security.
This series of blocks saw 20,686 transactions, resulting in over 23 BTC and a profit of approximately $1.54 million.
This mining took place for 1 hour and 38 minutes between block heights 843,898 and 843,904.
According to data pulled from mempool.space, AntPool earned an additional 21,875 BTC in block grants and 1,283 BTC in fees.
Adding interest to this development is the involvement of Foundry USA, the largest Bitcoin mining pool, which mined the block preceding this sequence and the next two blocks.
AntPool has mined 25.48% of all blocks over the past seven days, lagging behind Foundry USA, which holds 31.12% of the network hashrate.
Together, the two companies maintain 56.6% mining control. Antpool briefly challenged foundry leadership for three days in October 2023.
This incident highlights the inherent risks associated with centralized mining pools, particularly their vulnerability to attacks such as double spending and transaction censorship.
Observers have noted that AntPool and Foundry currently control more than 50% of Bitcoin’s hashrate, raising concerns about potential centralization and transaction censorship.
“This concentration of power poses an existential threat to Bitcoin’s decentralized nature and fundamental principle of trustlessness,” TOBTC Trading LLC posted on social media.
AntPool was founded in 2013 by Bitmain Technologies, a prominent mining hardware manufacturer.
It is headquartered in Beijing.
National security concerns about cryptocurrency mining
The U.S. government has ordered a Chinese-backed cryptocurrency mining company to stop building a mine in Wyoming.
A May 13 order signed by President Joe Biden requires MineOne Cloud Computing Investment and its partners to sell property near Francis E. Warren Air Force Base in Cheyenne, Wyoming.
MineOne Partners Ltd. is a Chinese-backed cryptocurrency mining company that plans to acquire land near Francis E. Warren Air Force Base in Cheyenne, Wyoming.
The order, issued in collaboration with the Committee on Foreign Investment in the United States (CFIUS), aims to address concerns about potential risks associated with foreign ownership of sensitive military facilities, particularly land near nuclear missile sites such as Warren. AFB.
The executive order requires MineOne to divest its cryptocurrency mining facilities and remove Chinese-owned equipment from the site within a specific timeline to ensure compliance and mitigate risks.
In another report, Norwegian regulators proposed new legislation to strengthen regulation of cryptocurrency mining activities conducted in data centers operating within the country.
A new law aimed at regulating data centers is poised to become a pioneering framework in Europe, requiring comprehensive registration of data center operators and disclosure of services provided.
The Norwegian government, led by Digitalization Minister Karianne Tung and Energy Minister Terje Aasland, emphasizes the need to screen out projects deemed undesirable, especially cryptocurrency mining due to its significant greenhouse gas emissions.
Energy Minister Terje Aasland explicitly stated: decided Norway does not welcome companies seeking to utilize the country’s energy resources cheaply in line with the country’s environmental goals.