Foundry

Bitcoin

A recent <a href="https://ultramining.com/news/en/large-scale-cryptocurrency-mining-farm-uncovered-in-dagestans-kizilyurtovsky-district/" rel="noopener noreferrer nofollow">investigation</a> conducted by 0xB10C, a Bitcoin developer, unearthed concerning evidence against F2Pool, the third-largest Bitcoin mining pool. The pool is suspected of deliberately censoring transactions sanctioned by the Office of Foreign Assets Control (OFAC). According to the report, which used data from miningpool-observer, F2Pool, responsible for 13.7% of all Bitcoin blocks mined in the last year, may be imposing a censorship regime on the Bitcoin network. This is significant as it suggests that roughly one out of every seven BTC blocks could be subject to such control, according to <a href="https://finbold.com/third-largest-bitcoin-mining-pool-likely-censored-ofac-sanctioned-transactions/?utm_source=CryptoNews&amp;utm_medium=app" rel="noopener noreferrer nofollow">finbold</a>.
The implications of this finding are further amplified by the practices of the two largest mining pools, <a href="https://ultramining.com/en/ratings/foundry/" rel="noopener noreferrer nofollow">Foundry</a> USA and AntPool, which mandate Know Your Customer (KYC) procedures for their miners. This requirement increases the likelihood of future compliance with regulatory measures. Together, these three mining pools make up 66.19% of the global Bitcoin <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a>, indicating a concerning trend towards the centralization of mining power in the network.
0xB10C’s detailed analysis identified six instances in September and October 2023 where mined blocks excluded OFAC-sanctioned transactions. Of these, four were linked to F2Pool. The report suggests that, in contrast to the blocks mined by <a href="https://www.viabtc.net/signup?refer=533030" rel="noopener noreferrer nofollow">ViaBTC</a> and <a href="https://ultramining.com/en/ratings/foundry/" rel="noopener noreferrer nofollow">Foundry</a> USA, which were classified as 'false positives,' the ones mined by F2Pool exhibited a pattern indicative of intentional censorship. Specifically, F2Pool seemed to have selectively omitted transactions from block heights 810727, 811791, 811920, and 813357, despite these transactions offering competitive fees compared to others that were included.
This discovery raises critical questions about the integrity and decentralized nature of Bitcoin, as F2Pool's actions contradict the fundamental principle of Bitcoin being a censorship-resistant form of money. The potential for a mining pool to exert such influence over the transaction process challenges the core values of the Bitcoin network and calls for a closer examination of the practices and policies of major mining entities.&nbsp;

Bitcoin Mining Pool F2Pool Under Scrutiny for Alleged Censorship of Transactions

Ultramining_Eng

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