Dogecoin (DOGE) might have started as a joke, but it is no joke now. The cryptocurrency is worth $372 million currently and has one of the most active community with over a million people strong. But Dogecoin has a major flaw, it is miner centralized.
According to data revealed on the official Dogecoin block explorer, Dogechain.info, only 4 miners control the 55% of the network. F2, the largest mining pool in the world, controls more than 22% of Dogecoin mining. Miner starting with the hash “DSvofg….” controls 17% of the network, while “DMr3fEi….” controls 10% of the network. Miner starting with “DjYc1…” controls 7% of the network.
Problems With Only 4 Miners
Having an entire networked controlled by only 4 miners possess a risk of the network suffering from 51% attack. In theory, all these miners combined have the entire control over the network. What happens if these miners decide to rollback transactions or double spend.
Miners hash power updates every second and there will be sometimes when the control over the network will be more or less. But 24-hour monitoring of data by Blockmanity has seen that the network on an average is 51% controlled by these 4 miners.