According to a recent research report by Florida International University
and Princeton University, China has a huge influence on the Bitcoin network. Mainly due to its monopolization of hashing power. China currently controls about 74 percent of the Bitcoin network. In theory, they could use this position to trigger an attack that can affect more than 50 percent of the Bitcoin system. Such an event would then trigger a chain reaction that could ultimately destabilize the entire Bitcoin ecosystem.
How did China become such a powerful Bitcoin Mining Power Plant?
Probably the availability of cheap electricity is a major factor in the centralization of hashing power in China. According to a recent report published by Diar, China has significantly lower electricity tariffs of about 4-8 cents per kWh compared to the United States and most Western countries. Electricity prices in the United States currently average 12 cents per kilowatt hour (kWh), while UK figures are around 19 cents per kWh. Here in Germany we have one of the highest electricity prices in Europe with an average of 28 cents per kWh.
The Chinese company Bitmain is a good example of a Bitcoin mining success story. Founded in 2013, years before the meteoric rise of the cryptocurrency industry, it played a significant role in establishing the bitcoin mining industry in China. It now dominates about 30 percent of this sector. Mining pools, BTC.com and Antpool, account for about 16 percent and 14 percent of the market share, respectively.
Why could the Chinese government attack the Bitcoin network?
There are numerous reasons why the Chinese government wants to attack the Bitcoin network. However, according to some Crypto analysts, one plausible reason would be to strengthen the country’s position as a bitcoin hash power monopoly. In order to gain better control over the cryptocurrency market and to keep foreign players away. According to Zhou Yuzhong, a renowned author who has written several books on the development of digital currencies in China, the Chinese government has taken important measures against numerous cryptocurrency activities over the past two years. including the ban on initial coin offerings (ICOs) and blocking access to offshore cryptocurrency exchanges. But what the central bank really wants is to regain control.”
What could such an attack on the Bitcoin network look like?
China could increase its hashing power monopoly by launching a series of coordinated attacks against competing mining pools controlled by competitors in other countries. According to the Florida-Princeton University report, a “Trojan” attack, in which Chinese “participants” appear as miners in foreign mine pools, would allow the submission of incomplete blocks in such pools. Such a covert operation would not raise suspicions and would result in the mining pool missing out on the rewards. A collectively coordinated attack would force frustrated miners to opt for more profitable mining pools, most likely controlled by the Chinese.
The Chinese government could also carry out de-anonymization vector attacks on the Bitcoin network to remove the anonymization of users. De-anonymization would allow the government to monitor the online activities of users, including their Bitcoin transactions.
All the more reason why miners should look for other pools that are not dominated by China. Even if the fees for the miners are then a little more expensive. After all, the whole thing is supposed to be decentralized and so China would no longer have a decisive influence on bitcoin.
Ray Valdes (CTO- ConsenSys) and Kate Mitselmakher (CEO – Bloccelerate VC) have given up their jobs at the well-known technology research company Gartner to join the blockchain movement. The two are no strangers to the blockchain world but experts and don’t just talk about anything therefore. In their opinion, we are still in the beginning and they give 5 predictions of how blockchain technology will shape the world by 2030.
Prediction 1: By 2030, most governments around the world will create or adopt virtual currencies. The state currency of the future will inevitably become a cryptocurrency. Compared to the traditional Fiat alternative, cryptocurrency is more efficient, offers shorter billing times and offers increased traceability.
Prediction 2: By 2030, among the four highest-rated companies in the world (based on stock market valuation), there will be a race over which will be the first $1 trillion in value. By using blockchain technology and their value of tokens, then in the running are Apple, Amazon, Alphabet (Google) and Microsoft.
Prediction 3: By 2030, identity systems as we know them today will be replaced by blockchain-based identity systems. These systems provide a single source for verifying people’s identities and assets.
Prediction 4: By 2030, most of the world’s world trade will be run using blockchain technology. One of the most promising areas is the global supply chain. In its current state, global trade is conducted over a chaotic, fragmented business relationship between parties that are untrustworthy.
Prediction 5: By 2030, significant improvements in the world’s living standards will be due to the development of blockchain technology. Poverty and income discrepancy are arguably the most difficult problems for humanity. More than 10 of the world’s population, more than 750 million people, live on less than $2 a day. Although overall living standards are rising and global GDP is rising, the rich are getting richer and the poor are getting poorer.
At Wharton School, more and more students are taking courses that deal with bitcoin and blockchain.
At other top universities, students are also eager to attend courses that focus on the decentralized technology of blockchain, which underpins cryptocurrencies such as Bitcoin. According to a new survey of 675 students from the United States of America by Cryptocurrency Exchange Coinbase and Qriously, 9 of the students have already attended courses in this context and 26 still want to do so.
One reason for the increased interest in blockchain prices
are probably the very good job prospects in the near future. A very high percentage of leading companies now have blockchain or distributed ledger projects and are looking for expertise in this area. In fact, job ads for bitcoin on LinkedIn have increased nine-fold in the financial services industry and four-fold in the software technology industry over the past three years (compared to the total job ads on LinkedIn). There are about 2770 vacancies related to “blockchain” on the career site Glassdoor. Even at Stepstone’s job search engine, 132 jobs are listed if you enter “blockchain”, there will be more weekly.
For the industry, the possible applications are numerous,
from supply chain tracking to electricity suppliers. According to PwC’s Global Blockchain Survey 2018, 84 of the companies are very active in the topic of blockchain. Soon, more and more blockchain courses will probably be offered in schools and universities in Germany as well. Even if there are only a few cryptocurrencies will survive the blockchain does this definitely!
Thomas Alva Edison invented the light bulb in 1880
which lasted a full 1200 hours with the help of a filament made of Japanese bamboo. This is the moment when the electric light truly entered people’s daily lives. An astonishing development also took place in 1906, when Edison’s General Electric Company became the first company to officially patent a technique on tungsten thread for light bulbs. And today the whole world is brightly illuminated.
In 1903, the Wright brothers made it
for the first time in the history known to us of successfully launching a manned aircraft. The attempt ended after barely 100 metres, but an incredible breakthrough was achieved. Today, more than 200,000 aircraft fly over our heads every day.
Konrad Zuse succeeded in inventing the Z1 computer in 1936,
which, however, was still full of logical errors. The Z1 was therefore followed by the Z2 and Z3. At the beginning of the 1980s, the technology was finally mature enough to benefit companies and private users. This led to the boom of the IT industry, which is reflected in the numerous company start-ups (Apple, IBM, Microsoft) at that time. Computers are absolutely indispensable these days.
British physicist Tim Berners-Lee
is considered the inventor of the World Wide Web, which he founded in 1990 with the world’s first website. Berners-Lee worked for the European Nuclear Research Laboratory (CERN) in Geneva. There, in 1989, he developed a project that, building on the existing Internet, enabled the worldwide exchange of scientific information through the principle of hypertext. In 1990, the world’s first website went online at the address info.cern.ch. Berners-Lee had inadvertently laid the foundation for a new medium that spread throughout the world at an explosive rate in the following years.
By the end of 2008, the financial crisis was in full swing and felt worldwide.
In September of that year, Lehman Brothers Holdings, then the world’s fourth-largest investment bank, filed for Chapter 11 bankruptcy protection. When the world’s financial infrastructure collapsed, the domain was registered Bitcoin.org. Later in 2008, a person or group under the pseudonym Satoshi Nakamoto published a white paper on Bitcoin on a cryptographic mailing list explaining how the cryptocurrency would work. In early 2009, Nakamoto promoted the first Bitcoin, the so-called Genesis block. Embedded in the programming of this first bitcoin was the text “The Times 03/Jan/2009 Chancellor on the verge of the second bailout for banks”. The text refers to a headline in the British newspaper The Times and is widely regarded as proof of the date on which bitcoin was first mined. The first bitcoin transaction followed soon after, when a bitcoin from Nakamoto was sent to Hal Finney, a cryptography expert. Today, thousands of transactions are made daily with bitcoins and other cryptocurrencies, and the world is only at the beginning of blockchain technology.