Mining Centralization and the Asicboost Dilemma

As Crypto currency enthusiasts we know why the Crypto space got us so excited in the first place. It was blockchain’s ability to undermine the centralization of governments and the issuers of money. The ability to become our own banks!

Most things never go to plan at least not without some type of series of hiccups. Bitmain, one of the world’s largest Bitcoin mining pools is the creator of a new mining technology referred to as Asicboost. This technology is patented for their purchasable mining rigs. The problem with this technology is that some argue that it is a cryptographic attack on Bitcoin itself. In other words Asicboost is exploiting a weakness in the code, Cipher or Cryptographic protocol of Bitcoin and exploiting it to achieve a result. This result is a more efficient mining rig that uses less electricity.
Jihan Wu a Co-founder of Bitmain is heavily opposed to Segregated Witness, The proposed solution of the scaling issue by the Bitcoin Core team. The reason why this is the case is up for debate. Core supporters are stating that the main reason Jihan is blocking SW is because if it is implemented the Asicboost technology will be nullified and the chip’s ability to exploit the cryptographic protocol will be undermined. This would undoubtedly be a major hit for Bitmain’s profits and its ability to dictate the future of Bitcoin, so it is important to note this when trying to understand what may be actually taking place.

It is human nature to always want more. We are never satisfied with just enough. It is our inherent dysfunction. When you have a lot of money or what most would agree is enough money the only thing there is left to get is what money gives you, which is more control and power. The banking systems went down this path and as we can see to no positive effect. Unfortunately We might be starting to see this unfold with Bitcoin and it will be interesting to see where things go since we live in a period of human history with a little more transparency than decades past.
Antbleed is another move by Bitmain to seek deeper control over Bitcoin itself. Antbleed is a function in all Antminer mining rigs except possibly the earliest versions. If you are a miner I highly recommend you check out antbleed.com. This protocol gives Bitmain the ability to track and control the mining rigs if need be. They have the ability to shut off a large portion of the global hashrate giving them an overwhelming power over Bitcoin. Luckily there seems to be a quick fix for miners. In my opinion the Antbleed allegations coming out absolutely shows Bitmains true intentions, which is the centralization of power.

When looking at the scaling debate from a bird’s eye view it seems that the overall consensus of Bitcoin user’s is leaning towards SW and Core support Versus Bitcoin Unlimited. It seems obvious that Jihan has serious skin in the game when it comes to the fact that the Asicboost edge can only work if SW is not implemented. It is also important to note that Jihan is accused of some other sketchy practices. Another being in the Litecoin mining arena. Where allegedly, Jihan is pushing mining rigs with Asicboost on Litecoin miners to prevent them from signaling for SW. The logic from core supporters for this is if Litecoin implements Segwit it would mean that SW would be one step closer to signaling for Bitcoin and this seems to threaten Jihan’s Bitmain.

All in all Bitcoins development seems to be being stifled or held back by a mining group and this is a sign of centralization. If a centralized group of miners or anyone in particular can dictate the future of Bitcoin we are losing what BTC was meant to be. Which is an open source democratic currency that’s direction is lead by the opinions of the majority. If we allow Bitcoin to be dictated by the likes of a centralized mining conglomerate, Bitcoins future and who it benefits will become ever more uncertain.