Bitcoin Decentralization: A Matter of US National Security

Maximizing the decentralization of the first cryptocurrency across the entire stack is a matter of US national security, according to Auradine CEO Rajeev Khemani in a comment to Cointelegraph.

He suggests that third-party firmware, which updates and changes over time, could theoretically be used to compromise the energy system or launch a 51% attack on the Bitcoin network.

Khemani believes that malicious code could halt mining operations in specific geographic areas, leading to a drop in the hash rate and the difficulty of mining the first cryptocurrency.

“Whenever you have hardware, software, or firmware from a foreign organization connected to your energy infrastructure, which Bitcoin has essentially become, you must ensure proper due diligence and risk mitigation,” stated the Auradine CEO.

He identified the supply chain of ASIC miners as another potential attack vector. If equipment manufacturing is concentrated predominantly in one jurisdiction, that country could restrict exports of these products at any time, leaving miners without access to crucial technology, Khemani added.

In July, Senator Elizabeth Warren criticized foreign mining companies in the US. She believes they pose a potential danger and threat to national security. However, according to the Auradine CEO, there are not many ways to spy or steal coins.

In September, CryptoQuant CEO Ki Young Ju noted that dominance in Bitcoin’s hash rate is shifting to American mining companies, although China still controls 55% of computing power.

Last month, miners of the first cryptocurrency earned a total revenue of $815.7 million, the lowest figure since the beginning of the year.