Canadian financial services group, Canaccord Genuity, has released a report indicating bitcoin has become significantly more decentralized over the last five years.
In Canaccord’s 2019 February report measuring bitcoin’s hashrate distribution, it was published that five mining pools currently control 10-20% of the hashrate with no single group controlling more than 20%. Contrasted to 2014 where the GHash.IO mining group controlled ~50% of the total bitcoin hashrate, the asset has become markedly less vulnerable to a 51% attack. A 51% attack potentially allows the group controlling the hashrate to recreate transactions on chain.
Remaining mining groups control less than 10% of the total hashrate.
The report sees this as a “foundational positive” and attributes greater competition among chip manufacturers to the increased decentralization. Bitcoin mining chips have become more common while advances in ASICs (application mining specific integrated circuits) have slowed, thereby allowing a larger spectrum to compete for mining rewards.