Another disappointment for the idealists who dream of a decentralized financial system is Zcash. Not everyone has heard of this currency, but it is already in the hands of the monopolists. About 51% of the computing power is under the control of one structure.
Mining crypto-currency can become both a basis for admiration, and a stumbling block. Everyone knows that bitcoin already has problems with centralization. It is extracted by a narrow circle of miners. Unfortunately, the Zcash currency has similar problems. One pool controls more than 50% of the “hash” of this network. It is not clear why all the miners gathered in one place. But it is possible to assume approximately: more often joining to a large pool gives more financial advantages.
Zcash is the Apogee of Centralization
It is very interesting to observe how the ecosystem develops in different types of digital money. Many coins are already suffering from centralization, which is to be expected. In the network bitcoin the problem lies in the fact that almost all of them are mined in a narrow range of pools that appeared in China.
Sooner or later, this may change, but so far there are no grounds for something to seriously change in this market. Smaller miners benefit from joining large pools, which have good chances of closing new blocks. It is for this that money is paid to the miners.
An interesting fact is that bitcoin is not a crypto currency with the strongest centralization on the market. This title belongs to Zcash. This is especially interesting, given the fact that the miners initially had every opportunity to join different large pools, but for some reason they all gathered in one. It’s about Flypool.
Than it Threatens
In the market there are enthusiasts who try to encourage people to disperse in different pools. Formally speaking, Flypool has the opportunity to launch an “51% attack” against the network. If, of course, its owners have a penchant for this. In the end, if hackers manage to capture only this pool, they will than profit.
While Zcash’s network is quiet and grace, no one sees this as a problem. But it is not known how long this stability will last.
Several large miners have already moved away from Flypool in an attempt to diversify the network. But so far no one has followed suit. It is difficult to take “hash-power” from one pool and transfer it to another. It is important for many miners to maximize personal income. They think about the welfare of the whole network at the last moment.
At the moment the situation is that, in most networks, it is most advantageous for crypto currencies to join the largest pools, because they have a better chance of generating a new block. But this is a double-edged sword.
Who Runs Zcash
Currency Zcash is not particularly discussed in the press. She is in the shade. 51% is total power over it. Its centralization went unnoticed. This is a curious event, worth watching.
Zcash is not the only altcoyin suffering from problems with centralization. The lightcain had a similar problem not so long ago. But, it seems, there were no complications. There is no reason to assume that Zcash will not overcome similar difficulties. And yet it will be interesting to see exactly how they will be solved. This topic will more than once float in the discussion on other crypto-currencies. Any example of fixing a problem can be useful for the following similar cases.