🏆 Mining Competition: Hashrate Wars

Compete against other miners to find blocks first and earn rewards

🏁 The Mining Race & Competition

Mining is a global race where participants compete for block rewards. This competition drives decentralization but also creates centralization risks through mining pools.

Solo vs Pool Mining

🧍

Solo Mining

Pros:

  • Keep 100% of block reward
  • Full decentralization
  • No pool fees or trust needed

Cons:

  • Extremely rare wins (lottery)
  • Unpredictable income
  • Might never find a block
👥

Pool Mining

Pros:

  • Regular, predictable income
  • Reduced variance/risk
  • Share in pool's success

Cons:

  • Pool fees (1-3% typically)
  • Centralization concerns
  • Trust pool operator

🎯 Interactive: Network Centralization Simulator

Explore different mining pool distributions and their security implications:

Balanced Network

Healthy

Well-distributed hashrate across multiple pools

Pool A25%
25%
Pool B20%
20%
Pool C18%
18%
Pool D15%
15%
Others22%
22%

Attack Risk

Low

Largest Pool

25%

The 51% Attack

If a single entity controls 51% of the network hashrate, they can attack the blockchain by rewriting recent history and double-spending coins.

1

Gain Majority Control

High

Attacker accumulates 51%+ of total network hashrate

2

Create Secret Chain

High

Mine blocks privately without broadcasting to network

3

Spend Coins Publicly

Medium

Make transaction on public chain (buy something, send to exchange)

4

Release Longer Chain

Critical

Broadcast secret chain - it becomes the "real" chain

5

Original Transaction Vanishes

Critical

Public transaction is erased, attacker keeps coins AND goods

🛡️

Why 51% Attacks Are Rare

  • Extremely Expensive: Acquiring 51% of Bitcoin's hashrate costs billions of dollars
  • Destroys Attacker's Investment: Successfully attacking crashes coin value, making attack unprofitable
  • Community Response: Network can hard-fork to undo damage and blacklist attacker
  • More Profitable to Play Fair: Using that hashrate to mine honestly earns more over time