The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization

The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization

There’s been a lot of controversy over the past few weeks stemming from the anonymous Twitter handle and co-owner of Bitcoin.org, ‘Cobra Bitcoin.’ The well-known BTC community member has been at the forefront of contentious subjects for many years now, and this week Cobra is claiming that one man has control of more than 51 percent of the BTC network.

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The Infamous Snake Twitter Handle ‘Cobra Bitcoin’ Claims Bitmain Controls 80 Percent of the BTC Hashrate

The notorious Cobra is at it again stirring up controversial conversations on Twitter, and begging the BTC community to change the protocol’s proof-of-work (PoW) consensus algorithm. Cobra believes mining pool centralization has taken over the network. Cobra’s tweets specifically target the Chinese firm Bitmain Technologies and the company’s CEO Jihan Wu. This is not the first time Cobra has initiated the subject of mining centralization as he has brought the topic up many times over the years, alongside BTC core developer Luke Jr, another staunch advocate of a PoW change. On June 18 the co-owner of Bitcoin.org shared a pie chart of the mining pools processing blocks on the BTC network and stated:

Bitcoin simply can’t be censorship resistant long term if the hashing power is controlled almost entirely by one entity — You can’t build ‘digital gold’ on something that can be shut down by one man, and needs rapid massive coordinated response amongst *everyone* to counter.

The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization
This is the pie chart the Twitter handle Cobra shared on June 18, 2018.

Prior to Cobra’s tweet showing the hashrate distribution pie chart, the anonymous individual started tagging big pools that he suspects are directly connected to Bitmain and its CEO Jihan Wu.      

“Bitmain claims they don’t control the majority of the hashing power behind Antpool, BTC.com and Viabtc and other pools,” states Cobra.

These claims and this hashing power needs to be audited, to verify how much is independently owned — Suspect 80%+ of BTC hashrate is Bitmain.

Cobra Accused of Throwing Stones from a Glass House  

The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization
BTC.com’s business operations VP, Alejandro DeLaTorre.

This specific statement led to a response from BTC.com’s business operations VP, Alejandro DeLaTorre, who scoffed at Cobra’s claims. Following the response, Cobra asks DeLaTorre if he can confirm “how much of the hashing power on BTC.com is owned by Bitmain?” DeLaTorre decides to respond by bringing up another point of centralization, which concerns Cobra’s control over the domain Bitcoin.org, and the recent changes the site has made banning companies that once supported the New York Agreement.

“Can you explain me to why the BTC.com wallet is no longer welcome on Bitcoin.org? While we followed all the community guidelines and more?” DeLaTorre asks the co-owner of the website (the other co-owner of Bitcoin.org is Theymos, the owner of r/bitcoin and bitcointalk.org).

All the wallet requirements have been met — Where does it state anything about NYA? If you’re going to play politics at least be transparent about it and reflect it on the requirements.

Not the First Time a Large Pool Controlled a Great Deal of BTC Hashrate — Ghash.io Surpassed 51% Several Times in the Summer of 2014    

Cobra’s following Twitter posts later that day continue to claim that Bitmain is in full control of the BTC hashrate, and he believes other mining pools cannot compete with the Beijing company’s power.  

“We have waited years for this competition that never arrives — Halong hardware is 1% of the network hashing power, and they don’t sell anything anymore,” Cobra explains. “It seems nobody can compete with Bitmain on cost per J/THs — They will continue to dominate long term, with nothing to stop them,” he adds.

The solution is to change the PoW, and end their monopoly, or to at least soft fork in a new algorithm alongside the existing SHA-256. This algorithm is at present a total failure.

At the moment, according to statistics from Blockchain.info, BTC.com, and Bitcoinity, data shows BTC.com’s pool currently has around 28-29 percent of BTC’s network hashrate at the time of publication.

The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization
June 13, 2014

The last pool that grew significantly large when it processed more than 51 percent of the BTC network in the summer of 2014 was Ghash.io. The mining pool Ghash.io surpassed the 51 percent mark a couple of times that year, and held that number for more than half a day on June 16, 2014. However, at the time the pool promised to stay honest and since then the Ghash.io pool had split up into multiple factions. Nothing major ever happened like Bitcoin Gold’s recent 51 percent attack, except a whole lot of FUD spread in MSM headlines that year.

The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization
Bitcoin Core developer Luke Jr has also been advocating for a hard fork to change BTC’s proof-of-work algorithm. Luke has created a poll for people to vote on the subject on Twitter. 

As far as Cobra and his recent statements, the snake-like character has relentlessly pushed for a PoW change for quite some time, and due to his bi-polar like statements its difficult for many to take his words seriously. However, his control over Bitcoin.org has allowed his voice to stir up controversial conversations once again.

What do you think about the infamous Cobra Bitcoin character and his recent statements? Let us know your thoughts in the comment section below.


Images via Pixabay, Wallpaper Abyss, and Blockchain.info.  


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The post The Anonymous Bitcoin.org Owner Accuses BTC Mining Pools of Centralization appeared first on Bitcoin News.

EOS Faces Constitutional Crisis over Frozen Accounts

“Consensus by conference call” — that’s how one critic characterized the on-chain governance model employed by the nascent EOS network in the wake of several high profile incidents involving block producers. Most recently, the network’s 21 block producers — organizations who verify transactions and validate blocks — froze seven EOS accounts allegedly belonging to thieves

The post EOS Faces Constitutional Crisis over Frozen Accounts appeared first on CCN

Digital Future Council Assembles Roster of Industry Leaders in Media, Tech

Digital Future Council Assembles Roster of Industry Leaders in Media, Tech

The Digital Future Council made its public debut on June 18, 2018, at the 2018 Cannes Lions International Festival of Creativity. With founding members from such organizations as IBM, Vice, CNN, Lego and Warner Bros., the council was formed as an informational intermediary to find common ground between creative and technological industries.

The Digital Future Council will be introducing a fresh batch of founding members with its official launch. These names include Meltem Demirors, CSO of CoinShares; Charles Manning, CEO of Kochava; Chad Andrews, global solutions leader at IBM; CNN’s Head of Content and Strategy Danielle Lauren and VP of Digital Strategy and Revenue Robert Bradley; Swen Graham, SVP of global marketing at Foursquare; and James Poulter, Head of Emerging Platforms at The LEGO Group.

During the festival, the council is hosting roundtables, dinners and town hall discussions on blockchain technology and how it may fit into legacy industries, particularly in the media and creative sectors. These talks will particularly emphasize the role blockchain technology could play in reimagining digital advertising models and consumer-controlled data, and they will challenge those from without the industry to envision how the technology could positively impact brand-consumer relations.

“The Digital Future Council was established to provide a forum for media, advertising and technology leaders to convene and communicate openly about areas of their businesses that could be enhanced by emerging technology,” David Wachsman, founder and CEO of the Wachsman blockchain PR company, told Bitcoin Magazine. “The Digital Future Council gives Wachsman a platform to have eye-opening conversations about how blockchain can transform businesses, specifically in media and advertising, as the proliferation of digital advertising, rising adoption of technology, and shifting consumer habits are changing the business of advertising.”

A blockchain-focused public relations company and one of the founding members of the council, Wachsman is positioned, along with other crypto industry representatives like Po.et, Gifto and CoinShares, to offer tutelage and guidance to council members who are less acquainted with blockchain’s relevance with their respective industries.

“Through the dozens of blockchain companies our firm has worked with to date, we’ve seen firsthand what works and what doesn’t and I hope that I can relay some of these learnings to the members of the council so that these legacy companies can truly understand blockchain’s potential impact, in a way that is tailored and specific to their businesses,” Wachsman said.

“For example, blockchain can address prevalent issues and challenges related to data management. Privacy and security concerns are major issues in the creative industries, especially with recent developments such as GDPR, and with blockchain, consumer data can be stored privately and securely. Blockchain can also help advertisers more effectively target and engage with consumers.”

As a media company with ties to the tech, Wachsman will likely act as an arbiter between the tech-oriented and the creative personalities that the Digital Future Council hosts. Others, like IBM, will look to offer the perspective of tech industry veterans who are learning the landscape of a new front.

“Because IBM took an early lead in investing in blockchain and launching an enterprise blockchain platform, we are approached almost daily by new companies exploring how the technology can improve or create new value,” IBM’s Global Solutions Leader Chad Andrews told Bitcoin Magazine. “Our primary interest is in reforming the media-buying supply chain, which is rife with inefficiencies … Blockchain's ability to remove frictions and build trust is tailor made to close the distance between advertising buyers and sellers, and to hold intermediaries (particularly in Digital) to new standards of openness.”

Like Wachsman, Andrews expects that the most important categories of use cases will include advertising, rights and royalties, and content exchange. “Founding members are walking the walk in each of these [sectors], spanning creatives, technology innovators, thought leaders and great business minds from brands, media companies, agencies, artists, consultants, platforms and, to our delight, a few technology and services companies.”

Beyond Cannes, the Digital Future Council plans to host quarterly events around the world. These events will hone in on the value and impact of emerging technologies for established enterprises, and they will feature debates and discussions like those at this year’s Cannes Lions International Festival of Creativity on topics like blockchain technology, AI and Big Data.

This is the Digital Future Council’s vision, but as Chad Andrews said to Bitcoin Magazine, “Vision is one thing. Execution is another.”

Wachsman reiterated this sentiment in his own interview. The council’s introduction at Cannes, he hopes, will set the conversational stage for concrete developments in the future.

“The first meeting is kicking off with blockchain based on demand from everyone participating and I think these initial meetings will debunk some myths and plant some seeds about ways that businesses can more effectively utilize bleeding edge technologies such as blockchain,” he said.

“In the long term, we want to turn these conversations into tangible action. We hope to set a precedent for how the creative community and technology industries can better work together, create meaningful and sustainable business relationships.”

Down the road, this includes “[publishing] educational papers that summarize the DFC’s quarterly meetings so that we can share the insights gathered with the wider industry and enable the masses to benefit from this knowledge,” Wachsman revealed.

To learn more about the Digital Future Council and the founding players involved, visit the consortium’s website.


This article originally appeared on Bitcoin Magazine.

BANKEX to Launch Crypto Custody Service

Top-50 fintech company BANKEX has announced the launch of Crypto Custody, the first blockchain-based cryptocurrency depository with no minimum fund limit.  Custody offers complete coverage of the three main risks with cryptocurrency storage, namely conve

IBM Partners With Mediaocean on Blockchain Solution for Ad Industry

IBM partners with Mediaocean

IBM partners with Mediaocean: IBM’s technology arm, IBM iX, and the advertising software company Mediaocean have partnered to create a blockchain solution and consortium for the advertising industry.

IBM Partners with Mediaocean: Blockchain Solution

The solution will be using the IBM blockchain and will “[aim] to provide transparency and build trust and accountability in the advertising ecosystem,” allowing advertisers to see where their budget is being used and for what.

Other agencies and companies that will be a part of the consortium include big names such as Kellogg, Kimberly-Clark, Pfizer, Unilever, and IBM Watson ...

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