Decentralized Bitcoin is a matter of national security – Oradin CEO
In general, promoting the decentralization of BTC is a matter of national security, Rajiv Kemani, co-founder and CEO of mining chip maker Auradin, told Cointelegraph.
The CEO explained that third-party firmware – which evolves and changes over time – could theoretically be used to compromise the power grid or launch a 51% attack on the Bitcoin network.
Oradin's CEO outlined a scenario where malicious code embedded in this firmware could block mining operations in certain geographies. This can lead to reduced hashrate and network congestion, making it easier to carry out a 51% attack.
Bitcoin network hashrate. Source: CryptoQuant
Kemani stressed the need for caution when evaluating third-party hardware and software:
“When you have third-party hardware, software and firmware connected to your energy infrastructure — which is what Bitcoin is essentially — you need to make sure you're doing the proper due diligence and risk mitigation.”
Another attack vector is the supply chain threat, the CEO said during the interview. If highly specialized mining hardware, such as application-specific integrated circuits (ASICs), are produced heavily in a region, that country can at any time restrict the export of those products – preventing miners from accessing the critical technology.
“There aren't many ways to spy or steal coins,” said Oradin's executive, who previously denied claims by US Senator Elizabeth Warren that foreign crypto miners could spy on US military bases. This is because mining hardware does not have strong memory or monitoring capabilities, the CEO told Cointelegraph.
Kemani concluded by arguing that the United States should implement policies that encourage domestic production of ASIC hardware, and that no single country should control the majority of hash power or hardware supply.
Related: BTC Miners Are Ideal Power Users, But Must Get Regulators – Hive
Geographic distribution of Hashrate poses a threat
Oradin's CEO isn't the only one sounding the alarm about hashrate concentration and mining pool centralization.
In May 2024, two mining pools – AntPool and Foundry – reportedly controlled more than 50% of the network's hashrate.
Distribution of Hashret by Mineral Pool. Source: HashRateIndex.com
Later, in September, CryptoQuant founder Ki Yang Ju revealed that China's mining pools account for 55% of hashrate – a claim that has been met with controversy.
According to TheMinerMag, Bitcoin miners participating in China-based mining pools are geographically dispersed, so it is incorrect to say that China has hashrate dominance. This makes it incredibly difficult to say which country controls the majority of the network's hashing power.
Magazine: Bitcoin miners steamroll after electricity theft, exchange ‘shutdown' scam: Asia Express
