Key Takeaways:
- Core Mining achieves a milestone by securing 40% of Bitcoin’s total hash power.
- Decentralization plays a crucial role in maintaining Bitcoin’s security and prevents potential 51% attacks.
- Core introduces “Decentralization as a Service”, enhancing the mining ecosystem and Bitcoin’s broader governance.
Significance of Core’s Achievement
Core Mining’s remarkable capture of 40% of Bitcoin’s hash power is not just a victory for the company but also a testament to the increasing decentralization and robustness of the Bitcoin network. This significant share underscores the role of Core in promoting BTC miner sustainability and amplifying the overall utility of the network.
Proof of Work Explained
At its core, the Proof of Work (PoW) mechanism is an energy-intensive process that transforms energy into digital currency. It ensures that the miners who devote computational power to validate and record transactions are duly rewarded. With an environment that boasts about a million miners globally, the decentralized nature of Bitcoin becomes its strongest armor. This widespread distribution of hash power makes it virtually impossible for any single entity to execute a 51% attack, eliminating central points of failure and boosting network security.
Positive Trends for Miners
Recent months have seen Bitcoin gaining traction, courtesy of price surges and increased transaction fees. Such developments inevitably lead to higher miner revenue, painting a positive outlook for the mining community. However, the rise of technologies such as Ordinals NFTs and BRC-20 meme coins could spell sustainability issues, with their potential to introduce boom-bust dynamics.
Diversifying Revenue Streams
Given the challenges like price volatility, intense competition, and fluctuating interest rates, it’s paramount for mining firms to diversify their revenue sources to ensure long-term viability. Core’s pioneering “Decentralization as a Service” benefits systems that leverage Bitcoin’s governance without being built directly on its protocol.
This symbiotic relationship with Bitcoin implies that hash power channeled to Core enhances both the mining ecosystem and its governance. Furthermore, Core presents a golden opportunity for Bitcoin miners to reap additional rewards without impacting Bitcoin’s efficacy. Notably, Core’s expansion doesn’t congest the Bitcoin network, ensuring a balanced mining ecosystem.
In essence, Core’s achievement in capturing 40% of Bitcoin’s hash power is monumental. It fortifies the decentralization and security of the Bitcoin network while spotlighting Core’s distinct position in refining the mining cosmos.
Source
https://medium.com/@core_dao/40-of-bitcoin-hash-power-is-now-securing-the-core-network-578f8d0b1e82
