AntPool, the second-largest Bitcoin (BTC) mining pool, mined seven consecutive blocks on May 17, raising concerns within the cryptocurrency community about network security. This series of blocks confirmed 20,686 transactions, resulting in over 23 BTC, valued at approximately $1.54 million in revenue. The mining spree occurred between block heights 843,898 and 843,904, lasting one hour and 38 minutes.

Large mining pools like AntPool and Foundry USA now control over 50% of Bitcoin’s hash rate, raising concerns about potential centralization and 51% attacks. This centralization trend, driven by economies of scale, allows these pools to censor transactions, as observed in past instances.

Data from mempool.space reveals that AntPool accrued 1.283 BTC in fees in addition to 21.875 BTC from the block subsidy.

A notable aspect of this development is the involvement of Foundry USA, the largest Bitcoin mining pool, which mined the block preceding this sequence and the following two blocks. AntPool has mined 25.48% of all blocks in the last seven days, trailing behind Foundry USA, which holds 31.12% of the network’s hash rate. Together, both companies maintain a 56.6% mining dominance. In October 2023, AntPool briefly challenged Foundry’s leadership for three days.

This event highlights the risks associated with centralized mining pools, particularly the susceptibility to attacks such as double-spending and transaction censorship. Observers noted that AntPool and Foundry now control over 50% of Bitcoin’s hash rate, raising concerns about potential centralization and transaction censorship.

“Such power concentration poses an existential threat to Bitcoin’s decentralized nature and its foundational principle of trustlessness,” posted TOBTC Trading LLC on social media.

AntPool was founded in 2013 by Bitmain Technologies, a prominent manufacturer of mining hardware. It’s based in Beijing.

National Security Concerns Over Crypto Mining

The U.S. government has instructed a Chinese-backed cryptocurrency mining company to halt the construction of a mine in Wyoming. According to an order signed by President Joe Biden on May 13, MineOne Cloud Computing Investment and its partners are mandated to sell off the property adjacent to the Francis E. Warren Air Force Base in Cheyenne, Wyoming. The order, issued in collaboration with the U.S. Committee on Foreign Investment in the United States (CFIUS), aims to address concerns surrounding potential risks associated with foreign ownership of land adjacent to sensitive military installations, particularly in proximity to a nuclear missile base like Warren AFB.

The executive order mandates the divestment of MineOne’s crypto mining facility and the removal of Chinese-owned equipment from the site within specific timelines to ensure compliance and mitigate risks.

Regulatory Developments in Norway

Regulators in Norway have proposed new legislation aimed at tightening regulations on cryptocurrency mining activities conducted by data centers operating within the country. The 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 offered.

The Norwegian government, led by Digitalization Minister Karianne Tung and Energy Minister Terje Aasland, emphasizes the need to curb projects deemed undesirable, particularly singling out cryptocurrency mining due to its substantial greenhouse gas emissions. Energy Minister Terje Aasland explicitly stated that Norway does not welcome businesses seeking to exploit the country’s energy resources cheaply, aligning with the nation’s environmental goals.

For more updates on cryptocurrency mining and regulations, stay tuned to the latest news on Global Crypto News.

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