![]() ![]() A wide distribution of nodes in the bitcoin network is what creates the system’s economic strength and security. It’s important to note that people can also run bitcoin nodes without participating in mining activity. The distribution of mining power, or the “hash rate,” can be seen on This includes 3 mining pools, which consist of a pool and a mining equipment manufacturer running their own equipment. There are four major miners who command 75% of the hashing power needed to “force” a migration to a new protocol - although again, this could change if the community agrees to set the majority needed at 95%. It currently stands at 75%, but many in the community are advocating for 95% to create the need for greater consensus and minimize the majority influence of a small group of miners. One of the debates is what percentage of miners will be able to move the network to a new protocol. Miners effectively maintain the bitcoin network and run the supporting “software,” so if and when a certain % of the Bitcoin nodes run a new protocol (like Bitcoin Classic or Bitcoin XT), then a 4 week grace period will begin and that will be the new version of Bitcoin. Miners use computing power and electricity to process transactions and in return, receive a bitcoin “reward” and transaction fees. Miners secure the bitcoin network and process blocks of transactions by doing complex computational work. ![]() This is a summary of this stakeholder landscape, and further clarification is provided below. A deeper understanding of some of the questions around bitcoin’s development require a deeper look into the interactions between these stakeholders. The bitcoin community consist of various stakeholders who all have different goals and incentives. At the moment, there is a broader communication issue between what the community and the businesses building with bitcoin need and what the technical community thinks is best. The reason Bitcoin is highly secure is that there is no one person that controls it, or the codebase. In terms of taking a stance – we have not done so publicly, as we are still assessing both sides of the issue and have companies in our portfolio who are divided in their views. One thing we all agree on is that it’s certainly been a bit of a show for those outside who are looking in, but we strongly feel there is less contention around bitcoin, the development of the protocol, and the direction of its future than there has been in recent months. The team at DCG certainly has thoughts on the issue of scaling bitcoin and achieving technical and non-technical consensus within the bitcoin community. They do not reflect DCG’s position on these issues, and are intended to provide context in an objective manner. Note: These insights were compiled by Meltem Demirors, who is an employee of DCG. ![]()
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