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NewsOne Mining Pool Controls 53% of Zcash's Hash Power, Prompting Double Spending Risk

One Mining Pool Controls 53% of Zcash's Hash Power, Prompting Double Spending Risk

Sep 20,2023,13:53

Mining Pool ViaBTC currently wields a substantial 53.8% of the Zcash network's total hash rate, as reported by MiningPoolStats. This situation raises concerns, as it theoretically enables the mining pool to engage in malicious activities such as double spending attacks.

In response to this potential threat, exchanges like Coinbase have implemented precautionary measures. They now require 110 block confirmations before confirming ZEC deposits, resulting in a deposit time of approximately 2.5 hours. The primary objective behind this move is to mitigate the risk of double spending. Double-spending is the risk that a cryptocurrency can be used twice or more. This threat emerges when a single entity controls over 51% of the hash rate in a proof-of-work blockchain.

It's important to note that this dominance doesn't stem from a single miner but rather from a mining pool. Mining pools are collections of numerous miners who combine their computational resources to achieve a more consistent income. In the event that the mining pool engages in harmful activities, individual miners have the option to discontinue their association with the pool and seek alternatives.

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