3

GHash.io was a big mining pool back when mining pools were mostly just a way to organize for large numbers of small private mining operations. (Whereas today, the biggest mining pools own huge mining farms and provide most of their hashing power themselves.) There was a situation a few years ago, when GHash.io was dominating the mining market and had more ...


3

No, the network wouldn't disconnect them. There's no way for that to happen. Recall that a pool is an association of miners who agree to share the proceeds of their mining; whenever anyone mines a block, the other members of the pool get a share. But miners are free to leave at any time, simply by stopping mining blocks for that pool and joining another ...


2

Quite the contrary. If a pool becomes too big it just earns more money. There is no punishment. Maybe some bad reputation, but not something the majority will even notice. It has happened three times so far that pools reached hashpower majority or got too close to it: Deepbit, BTC Guild and GHash. Only Eleuthria, operator of BTC Guild, handled this in a ...


2

If you control hashrate majority you can do bad things like change the past. You can reverse transactions. That's not supposed to happen. This is the Achilles heel of Bitcoin. The Ghash pool used their hashpower to scam a casino. So people absolutely should fear centralization of hashpower. Ghash later said it was a rogue employee that did this and that ...


2

Apparently they were hit with a massive denial of service attack in response to their growing hash rate. That combined with a subsequent drop in the price lead them to stop their cloud mining operation and focus on their exchange (cex.io). The other non cloud-miners who left the pool most likely did it in response to the massive appeal from the community to ...


2

To go from GH/sec to BTC/day, use this: BTC/day = GH/sec * 1,000 * 25 * 24 * 3,600 / 2^32 / difficulty(in millions) Because: the block reward is currently 25, there are 24 hours in a day, 3600 seconds in an hour, and the base share difficulty is 2^32. So 100GH/s, at the current difficulty of 707 million will yield: 100 * 1,000 * 25 * 24 * 3600 / 2^32 / 707....


1

It means they could add illegitimate transactions to the public ledger, but actually I think theoretically all they need is 34% to do that. The network wouldn't disconnect them.


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