For example, over the past five years, 60% of the world’s net bitcoin traffic was carried by just three Internet Service Providers (ISPs).
And in a 2020 metric, Trail of Bits claims 4.5% of BTC holders control 85%+ of mining pools – yet in recent months, the collapse of cryptocurrencies has been unstoppable.
It is also worth pondering that although the report does not disclose any vulnerabilities in the cryptocurrency/blockchain network, there are still regulatory weaknesses at the system level.
For example, temporary operations made on blockchain software may have an impact on transactions. Network entities that also control the bulk of a particular blockchain may be forced to, or driven by personal will, refuse to provide services for various reasons.
The study was commissioned by DARPATrail of BitsFinish
The study also noted that protocol traffic is not encrypted, opening the door to man-in-the-middle attacks. Trail of Bits scraped the BTC network and found that 21% of nodes were running a vulnerable legacy core client.
Another systemic flaw is that if a node operator commits a breach, there is no disciplinary system that others can rely on, and the Stratum protocol, which is said to coordinate mining pool activity, is also unencrypted.
Bit gaming executive Dan Guido pointed out: Given that onion routing accounts for 55% of BTC traffic, using the wrong exit node can also have an impact on traffic — such as tampering with history, censoring transactions, and making users unable to use BTC.