Rajiv Khemani, CEO of mining chip manufacturer Auradine, recently noted the critical need for decentralization in Bitcoin’s infrastructure, labeling it a national security issue.

In an interview, Khemani highlighted the dangers posed by third-party firmware used in mining operations. He suggested that such firmware, which is constantly updated, could become a weapon for launching a 51% attack on the Bitcoin network, thereby compromising its security.

The Auradine executive painted a grim scenario where malicious code could potentially shut down mining operations in specific regions, drastically reducing the network’s hashrate and making it vulnerable to attacks.

“When dealing with hardware and software from foreign entities connected to energy infrastructure, caution is essential,” Khemani warned, urging the industry to conduct rigorous due diligence.

Supply Chain Dominance: Another Threat

Beyond software vulnerabilities, Khemani also flagged the issue of supply chain risks. Specialized mining hardware, particularly ASICs (Application-Specific Integrated Circuits), is crucial for Bitcoin mining. If one country monopolizes the manufacturing of these chips, it could cut off miners from accessing essential technology by restricting exports. This would significantly weaken Bitcoin’s decentralization and security.

In contrast to recent claims by U.S. Senator Elizabeth Warren, Khemani dismissed the notion that mining hardware could be used to spy on military bases. “Mining hardware doesn’t have the robust memory or surveillance capabilities needed for espionage,” Khemani clarified, dispelling concerns about foreign crypto miners infiltrating critical infrastructures.

Geographic Hashrate Distribution Sparks Debate

Khemani’s concerns about centralization resonate with broader worries within the industry. Recent data revealed that by May 2024, just two mining pools—AntPool and Foundry—controlled more than 50% of Bitcoin’s total hashrate. This centralization raises concerns about the potential for coordinated attacks on the network.

In September, CryptoQuant’s founder Ki Young Ju further stirred the debate by claiming Chinese mining pools account for 55% of the network’s hashrate. However, *TheMinerMag* disputed this, arguing that miners in these pools are globally distributed, making it misleading to claim any single country has control over Bitcoin’s hashrate.

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