New Research Highlights Bitmain’s Influence Over Mining Proxies

17 Sept

Research conducted by pseudonymous researchers Mononaut and 0xB10C has revealed findings regarding the extent of Bitmain's influence over Bitcoin mining pools. While it has long been suspected that Bitmain, a leading manufacturer of Bitcoin mining hardware, exerted control over a substantial portion of the mining network, new research confirms that many so-called independent mining pools may actually operate as proxies for Bitmain.

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Research Findings

The latest analysis, which follows initial revelations from April, used a weighted similarity score to assess transaction ordering and block templates across 37% of Bitcoin’s hashrate. The results revealed a striking overlap between Bitmain-operated pools and other mining groups. Specifically, Poolin and BTC.com displayed a 99% and 98% similarity to AntPool, Bitmain's direct mining pool.

Additionally, other mining operators, including Ultimus, Braiins, Binance, and Spider, were found to have over 80% correlation in block templates to this Bitmain-led trio. This suggests that Bitmain’s block templates, used in mining pool operations, are prevalent across much of the Bitcoin network, even in pools considered independent.

The Influence of Bitmain

Bitmain’s dominance in the physical production of Bitcoin mining equipment is well known, but its less visible role in shaping the operational practices of mining pools is now under scrutiny. Although miners technically have the freedom to switch between different pools, the research suggests that many seldom move away from Bitmain’s work templates.

Importantly, the researchers noted that this does not necessarily mean Bitmain exerts direct control over these pools. Miners may simply choose Bitmain’s templates for convenience rather than as a result of coercion. However, the level of uniformity in mining practices raises questions about the potential centralization of the Bitcoin mining ecosystem.

Monitoring and Ongoing Research

The ongoing research by Mononaut and 0xB10C, who operates Bitcoin network monitoring tools such as miningpool-observer and fork-observer, continues to shed light on this issue. While the similarity in block templates does not conclusively prove Bitmain's control over independent pools, the findings highlight the pervasive influence of Bitmain’s infrastructure within the broader Bitcoin mining network.

0xB10C, who is also a long-term recipient of a philanthropic grant from OpenSats, remains dedicated to investigating and monitoring the health of the Bitcoin network.

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