RATE Group | Is Staking the Answer to Cryptocurrency’s Mining Problems?
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Is Staking the Answer to Cryptocurrency’s Mining Problems?

23 Mar Is Staking the Answer to Cryptocurrency’s Mining Problems?

Posted at 08:57h in Cryptocurrency News by

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For a tech that was supposed to be democratic and distributed in order to free financial systems from the grip of government-influenced banks and return control of the money supply to the people, cryptocurrencies have turned out to be pretty concentrated. 

Some 66% of all Bitcoin (BTC) mining now takes place in China, with 54% located in the southwest province of Sichuan, as a recent study revealed. Three Chinese mining pools alone are responsible for nearly half of Bitcoin’s hashrate. The days when a single Bitcoin enthusiast could crunch numbers on their home computer and land a Bitcoin reward for helping to group transactions into blocks are long over.

Related: The Dangers of Mining Pools: Centralization and Security Issues

That is a problem, and not just because it centralizes a vital part of the Bitcoin infrastructure in a single location under the control of an authoritarian government. It’s also a problem because the reason Sichuan is such an attractive site is because it…

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