The sharks are going to eat you!
New Shark In Town
A well-known Bitcoin cash startup has launched a mining pool. It’s no ordinary mining pool. The mining pool is specifically designed to attack Altcoins and BCH forks.
Satoshi Nakamoto wouldn’t be too happy to hear about! It simply doesn’t fulfill his vision for the crypto-world. But, the startup doesn’t give a fudge!
Say Hello To the Shark
SharkPool is a service uses a two-pronged attack on other crypto-networks. It exclusive mine empty blocks and then sell them for profit for (BCH) It’s kind of smart. But, the real question is what does it mean for the crypto-world?
The company is extremely ambitious. However, in all the wrong ways. They believe all the Altcoins are “acts” are war against Bitcoin” except the preferred version of Bitcoin cash. The want all BCH lovers to fight in the name of love.
The company Shark Pool is being operated by CashPay Solutions.Its the parent company of numerous other Bitcoin cash services, the famous e-commerce platform Cryptonize and the Cashpay Wallet.
Interestingly Sharkpool has attracted a lot of miners with hardware which is compatible with a wide range of different hashing algorithms. We have absolutely no idea which crypto-networks are on their target list. All we know is if you don’t have a seat at this table, you’re going to be dinner because Sharkpool has gained a lot attention and some people don’t want war!
The 2 Attacks
Attack 1: Sharkpool plans to exclusively mine empty blocks on altcoin networks and then sell them for Bitcoin cash.
Attack 2: Shakpool will be converting all of its proceeds to Bitcoin cash which will BCH with a consistent buy pressure. Simultaneously placing a downward pressure on the prices of other altcoin networks that it mines.
Why Mine Empty Blocks?
The real question is why are miners so interested in all of this anyway?
All the Proof-of-Work crypto-networks reward the miners for producing block and adding valid transactions on the blockchain’s public ledger. As new coins continue to enter the network and circulation is maintained. The rewards keep coming. There are two forms of rewards: miner fees from the transactions that are included in a block and coinbase rewards (new coins generated in a block.)
When a miner produces an empty block with no transactions, except for the coinbase transaction that inevitably distribute the block reward to the miner. It might seem unreasonable because there are transactions in the memory pool and this way miners by their own will are denying themselves with potential revenue.
The Technicality Behind It All
The Bitcoin Unlimited developer Andrew Stone has put it for us in much simpler terms because the technical practicalities and economics of cryptocurrency which makes mining more complex. Truth be told mining isn’t easy, there numerous time consuming steps miner have to perform before they can successfully mine on top of another block by a different miner.
One step is to download all the transactions from the previous block and they need to be removed from their copy of the memory pool as well. This helps in preventing the miner from producing a block which includes transactions that already exited in the previous block.If this is not done, the new block will be invalid. Therefore, hashing an empty block gives the miner a head start because the miner won’t have to wait to download the transactions.
Whatever Shakpool is doing is not a violation. All we know is that it’s definitely something which is frowned upon on. Sharkpool also wants to make it difficult for the affected network to process transactions. We think all of this is a bit too much. Don’t you think?