Princeton University and other research groups have analyzed China’s threat to the Bitcoin network and concluded that China has a diverse range of attacks on the Bitcoin network and has the motivation to do so. The Chinese government is imposing stringent restrictions on ICOs and cryptographic exchanges, but it could point to the problem that if they wanted, they could still manipulate or destroy the bitcoin network, which is still in its infancy.
According to this, we point out the problem of how the bit coin mining industry is centralizing. More than 80% of bitcoin mining is done by six companies, but five of them are in China, and the entire Chinese mining company accounts for a whopping 74% of the bit coin hash power.
The Chinese government occupies an overwhelming position in the mining field, which can be an attack. It is possible to impair the anonymity of the beat coin, impede the consensus-building mechanism, and double-pay, thereby undermining BitCoin’s credit and demonstrating the strength of the Chinese government.
China can control the bit coin system at random using an overwhelming hash exchange rate. The paper says that to prevent this, bitcoin networks other than China have to pay a bigger price than China, but they can not be united because they are not systematic. It is argued that if China is to use this power, mining companies can leave this market and consequently the bit coin can be destroyed.
The researchers also point to the Chinese government’s motivation to engage in such attacks. It is pointed out that the decentralization, which was originally a bit coin, is an opposite ideology to the centralized political system in China, and that it shows the vulnerability of the distributed system itself is meaningful for China alone. For more information, please click here .