January 3, 2024

Five Leading Bitcoin Mining Pools Controlled 84% of Total Blocks in 2023

Reports indicate that in 2023, five dominant Bitcoin mining pools were responsible for an astounding 84% of all mined blocks. This unprecedented achievement was fueled by remarkable hashrates and the adoption of advanced-generation miners.

From December 30, 2022, to December 30, 2023, the Bitcoin mining landscape witnessed a transformative year characterized by significant milestones and industry-leading participants. A total of 54,002 Bitcoin blocks were successfully mined during this period, with Foundry USA emerging as the foremost contributor, securing an impressive 16,492 blocks. The mining community faced and overcame 27 difficulty adjustments, mostly increases, resulting in a record-breaking hashrate of 612 EH/s on December 24, 2023.

Bitcoin hashrate

Bitcoin miners experienced a prosperous 2023, collectively unveiling over 54,000 Bitcoin blocks. Each of these blocks, containing 6.25 newly minted bitcoins along with associated fees, underscored the resilience of the mining ecosystem. Foundry, Antpool, F2pool, Viabtc, and Binance Pool emerged as the dominant mining pools, jointly responsible for the discovery of 45,707 block rewards throughout the year. A noteworthy trend in 2023 was the consolidation of mining power, with these five leading pools contributing to over 84% of all Bitcoin blocks.

Pool distribution

Luxor, with 1,311 blocks (2.43%), btc.com with 978 blocks (1.81%), and Braiins Pool, with 894 blocks (1.66%), contributed to the diversity of significant contributors. The year also witnessed 147 empty blocks, making up approximately 0.27% of the total, with Antpool, F2pool, and Viabtc being the primary sources, generating 65, 20, and 21 empty blocks, respectively. One standout achievement of the year was the exponential increase in the capabilities of Bitcoin miners, resulting in the historic hashrate of 612 EH/s.

This marked a substantial growth compared to January 2016 when Bitcoin’s hashrate first reached one quintillion hashes per second (H/s). Ending the year at 529 quintillion H/s highlighted the remarkable evolution of the network’s total hashpower over the past eight years. Key industry players, including Bitmain, Canaan, Microbt, and Auradine, played a pivotal role in this growth by introducing advanced-generation miners in 2023. These cutting-edge devices, boasting capabilities of over 375 terahash per second (TH/s), not only exhibited increased power but also superior efficiency, with ratings below 20 joules per terahash (J/T).

Foundry, Antpool, and F2pool reported substantial increases in their hashrates, with Foundry reaching 147 EH/s from 71.84 EH/s, Antpool growing from 49.95 EH/s to 139 EH/s, and F2pool increasing from 31.99 EH/s in December 2022 to 62.27 EH/s. As the year concluded, it became evident that 2023 marked a period of immense growth and innovation for the Bitcoin mining industry. The looming halving event in April 2024, set to reduce block rewards from 6.25 to 3.125 BTC, added an element of anticipation and signaled a significant shift for the sector.

However, the industry’s demonstrated resilience and advancement throughout 2023 positioned it well to navigate the changing landscape following the reduction in subsidies. The approach of the halving event adds a layer of intrigue, prompting a closer examination of how dominant mining pools will strategically navigate the evolving terrain. The transformative year of 2023 in Bitcoin mining showcased increased hashrates, the introduction of advanced mining technology, and a concentration of mining power among key players.

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