Auradine CEO Warns of Bitcoin Decentralization and Supply Chain Risks
đ Stay Ahead with AltcoinDaily.co! đ Rajiv Khemani, CEO of mining chip manufacturer Auradine, recently noted the critical need for decentralization in Bitcoinâs infrastructure, labeling it a national...
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Rajiv Khemani, CEO of mining chip manufacturer Auradine, recently noted the critical need for decentralization in Bitcoinâs infrastructure, labeling it a national security issue.
In an interview, Khemani highlighted the dangers posed by third-party firmware used in mining operations. He suggested that such firmware, which is constantly updated, could become a weapon for launching a 51% attack on the Bitcoin network, thereby compromising its security.
The Auradine executive painted a grim scenario where malicious code could potentially shut down mining operations in specific regions, drastically reducing the networkâs hashrate and making it vulnerable to attacks.
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âWhen dealing with hardware and software from foreign entities connected to energy infrastructure, caution is essential,â Khemani warned, urging the industry to conduct rigorous due diligence.
Supply Chain Dominance: Another Threat
Beyond software vulnerabilities, Khemani also flagged the issue of supply chain risks. Specialized mining hardware, particularly ASICs (Application-Specific Integrated Circuits), is crucial for Bitcoin mining. If one country monopolizes the manufacturing of these chips, it could cut off miners from accessing essential technology by restricting exports. This would significantly weaken Bitcoinâs decentralization and security.
In contrast to recent claims by U.S. Senator Elizabeth Warren, Khemani dismissed the notion that mining hardware could be used to spy on military bases. âMining hardware doesnât have the robust memory or surveillance capabilities needed for espionage,â Khemani clarified, dispelling concerns about foreign crypto miners infiltrating critical infrastructures.
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Geographic Hashrate Distribution Sparks Debate
Khemaniâs concerns about centralization resonate with broader worries within the industry. Recent data revealed that by May 2024, just two mining poolsâAntPool and Foundryâcontrolled more than 50% of Bitcoinâs total hashrate. This centralization raises concerns about the potential for coordinated attacks on the network.
In September, CryptoQuantâs founder Ki Young Ju further stirred the debate by claiming Chinese mining pools account for 55% of the networkâs hashrate. However, *TheMinerMag* disputed this, arguing that miners in these pools are globally distributed, making it misleading to claim any single country has control over Bitcoinâs hashrate.
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