{"id":291,"date":"2012-03-17T20:11:15","date_gmt":"2012-03-17T20:11:15","guid":{"rendered":"https:\/\/www.privateinternetaccess.com\/blog\/?p=291"},"modified":"2026-06-16T03:32:06","modified_gmt":"2026-06-16T10:32:06","slug":"bitcoin-war-the-first-real-threat-to-bitcoin","status":"publish","type":"post","link":"https:\/\/www.privateinternetaccess.com\/blog\/bitcoin-war-the-first-real-threat-to-bitcoin\/","title":{"rendered":"Bitcoin War: The First Real Threat to Bitcoin?"},"content":{"rendered":"

\"DJ<\/a>
Scumbag Bitcoin Miner<\/figcaption><\/figure>\n<\/p>

For most Bitcoiners, it is a well known fact that there is a significant risk in the decentralized peer-to-peer currency pertaining to hashing power.\u00a0 In order to maintain a perfectly democratic internet currency, no one single entity should ever have control of 51%, or greater, of the total network hashing power.<\/p>\n

Today, one of our researchers discovered that according to Blockchain.INFO<\/a>, a miner at 85.214.124.168 currently has approximately 15% of the total hashing power.\u00a0 This, in itself, is every day news. \u00a0However, the strange or even frightening fact is that it is producing empty blocks (single transaction blocks). \u00a0If this 15% turned into 51%, it could have the potential to kill bitcoin. \u00a0 Why are they doing this?\u00a0 There are a few possible reasons:<\/p>\n

1. The entity may have discovered a method for increasing mining ROI, and essentially, is earning its 50 bitcoins per block much more quickly than others.\u00a0 In general when finding a block, hashes for every transaction must be computed.\u00a0 When computing 1 transaction per block versus 100, you can imagine the latter would be more costly than the former.\u00a0 However, this means that the entity would not receive any fees for processing transactions.\u00a0 It is difficult, at the current time, to determine whether this would be beneficial.<\/p>\n

2. The entity is willing to blow money on mining these empty blocks.\u00a0 Essentially, this could lead to a complete stop in bitcoin transaction processing.\u00a0 If the entity obtains 51% of hashing power and fully stops processing transactions while mining against only its own blocks, the block chain will become useless. \u00a0Some people who might do this include governments, banks, competing currencies, or ridiculously wealthy and bored individuals who have a vendetta against bitcoin.<\/p>\n

3. This could also be a botnet that does not wish to deal with the hassle of constantly sending all of the current transaction information to its zombies.\u00a0 This would be more for coding simplicity rather than for financial gain.<\/p>\n

As of today, there is still very little risk.\u00a0 Additionally, assuming this entity falls under the #1 listed above (i.e., not entirely malicious), the worst thing that will happen is that bitcoin transaction confirmations will be slowed down by whatever percent of hashing power they are \u201ccontributing,\u201d and Jerry McGuire will yell \u201cSHOW ME THE MONEY!\u201d<\/p>\n

So what is it?\u00a0 Is this entity generously increasing their ROI, or is it attacking and taking over?\u00a0 With the recent security advisories<\/a> and, of course, the widely publicized hacks, it looks like the WWW (Wild Wild West) is in full effect.<\/p>\n","protected":false},"excerpt":{"rendered":"

For most Bitcoiners, it is a well known fact that there is a significant risk in the decentralized peer-to-peer currency pertaining to hashing power.\u00a0 In order to maintain a perfectly democratic internet currency, no one single entity should ever have control of 51%, or greater, of the total network hashing power. Today, one of our … Continue reading “Bitcoin War: The First Real Threat to Bitcoin?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","footnotes":""},"categories":[15,12,1],"tags":[19],"class_list":["post-291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","category-security","category-news","tag-bitcoin-2"],"yoast_head":"\nBitcoin War: The First Real Threat to Bitcoin?<\/title>\n<meta name=\"description\" content=\"A look at the first real threat to Bitcoin: why concentrated hashing power puts the decentralized peer-to-peer currency at significant risk.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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