Is hash power concentration of over 51% in China a problem?
To answer the question, the deputy President of OKcoin has given his answer.
The following is his answer.
The point that it is problem and danger that more than 51% of hash power is confined to China is just not correct.
70% concentration of hash power in China does not necessarily lead to a 51% attack.
1.Bitcoin network will breakdown after being attacked. Then is this in the interest of holder of 51% hash power? What is the motive behind the attack?
It is as if you have control of 51% of currency printers in the world and you plant to print forged notes, making you losing reputation and trust to the extent that people do not dare to use the notes you printed anymore. Will you make the initial investment including machine factories, equipment and staff wasteful?
2.The hash power is not distributed in one single party
The hash power is distributed at several mining pools and free miners. China’s top three mining pools account for 16.8%, 10.4%, and 8.8% respectively (at press time).There is no single party behind these pools directing united action. Back to 2008~2012, almost 100% of hash power was concentrated in the U.S. Then why the U.S. didn’t launch 51% attack while China’s large power can be problem?
source:Blockchain.info (February 20, 2017)
3.Bitcoin community is a mature community with strong self-correction ability.After 7 years of development, Bitcoin has become the most mature community with error-correction capability. For example in 2014 when news said that Ghshi.io controlled near 51% hash power of the network, mining pools like BitFury just announced it would remove its hash power from Ghsi.io at the speed of 1.5HP/s. The company said, as a leading company and a reliable partner, it made such decision out of its responsibility to the community. This testament shows us that we should be confident the global efforts of the community will eliminate any potential threat.
4.Bitcoin technology and Blockchain technology are becoming mature.
The community now is seeing company like 21 Inc. is building micro-level mining and payment commercial mode, which is making mining more distributed. The underlying technology of Bitcoin is making progress and becoming mature. We should be prudent but also optimistic about it.
In conclusion, 51% attack problems should be analyzed from the consequences of it instead of ideology.