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Bitcoin hash rates threaten blockchain decentralization

Published 05/01/2023, 06:54 PM
Updated 05/02/2023, 02:20 PM
© Reuters.
BTC/USD
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Blockchain technology was introduced in 2008 as a decentralized, secure, transparent system for managing digital transactions. Its primary aim was to provide a solution to major problems with traditional transactional systems, including trust, security, decentralization and efficiency. Blockchain has since expanded beyond finance and has been used in supply chain management, healthcare, games, digital media and social media, among others.

However, the blockchain industry is still facing significant challenges — such as a lack of diversity, wealth control by a few holders, hash rate problems and a loss of the promise of decentralization.

Hash rate distribution among the largest mining pools for the six months ending April 25, 2023.
Bitcoin ownership concentration, 2021 v. 2023. Source: Glassnode
Alexa Karp is head of marketing at Lumerin and a former founding marketing manager at Metaplex. She is also an angel investor and adviser to more than 20 Web3 projects. She graduated with a BBA degree from Baruch College in New York.

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