Bitcoin mining: Marathon Digital mines an invalid BTC block

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According to recent sources, Bitcoin miner Marathon Digital was involved in mining a BTC block that was subsequently declared invalid. 

Specifically, this invalidation was caused by a “problem related to transaction sorting.” 

See below for full details. 

Marathon Digital’s problem in mining a Bitcoin (BTC) block

As anticipated, Bitcoin mining company Marathon Digital (MARA) recently mined a Bitcoin block, height 809478, which was declared invalid according to reports from developers, miners and researchers. 

Specifically, the anonymous Bitcoin expert, “0xB10C,” reported a “transaction ordering problem” on X, a confirmation also coming from CasaHODL co-founder Jameson Lopp

This block was rejected by other node operators because it contained a transaction with errors in ordering, including an expense output transaction. We emphasize that this situation has also been documented by BitMEX Research.

We also note that this incident highlights the importance of security and accuracy in Bitcoin mining, with significant consequences if errors in transaction sorting occur.

BlackRock and other financial industry giants embrace Bitcoin mining: Coutts’ words 

A recent report by Bloomberg analyst Jamie Coutts reveals that asset managers are showing a growing interest in Bitcoin that goes beyond Exchange Traded Funds (ETFs) to mining. 

Indeed, in the report, Coutts specifically mentions BlackRock, saying that the asset manager’s request to the U.S. Securities and Exchange Commission (SEC) to offer a spot ETF on Bitcoin is “not surprising.” 

Coutts reveals that BlackRock, along with other major global asset managers such as Vanguard and State Street, has been involved in Bitcoin mining for more than three years. 

The analyst also points out how this development comes in a context where Bitcoin mining has been criticized for its dependence on fossil fuels. 

Despite the environmental, social, and governance (ESG) credentials of these companies, investing in Bitcoin mining appears to be in line with ESG principles, as 50% of the energy used in Bitcoin mining comes from sustainable sources, a percentage that is expected to grow further.

“Asset managers’ participation is not a threat to Bitcoin’s decentralization” 

James Coutts’ report reveals that BlackRock, along with two other major asset managers, is the largest investor in the three major publicly traded mining companies, Marathon Digital, Riot Platforms and Cleanspark. 

These companies combine 8.9% of the global hash rate, a significant figure considering that public miners make up only 15% of global hash power. Currently, Coutts does not see this participation of asset managers as a threat to the decentralization of the Bitcoin network. 

However, the analyst foresees possible conflicts between network values and ESG values, given the activist leanings of BlackRock, Vanguard, and State Street. This would not hinder the operation of the Bitcoin network, but it could prompt other miners to engage in censored transactions, especially those based on fossil fuels.

Currently, Bitcoin’s price is about $26,198.48, up 0.57% in the past month, according to Tradingview.

The sustainability revolution in Bitcoin’s mining sector

Recent data show that the Bitcoin mining sector has made significant progress toward sustainability, emerging as the leading global industry in the use of clean energy, with more than 50% of its power coming from green sources.

Hence, a promising new scenario is rapidly emerging. Specifically, Daniel Batten, co-founder of CH4Capital, shared graphic data highlighting the eco-friendliness of the Bitcoin network, comparing it to other industries.

This shows that while most industries saw only modest increases in clean energy use during the same period, Bitcoin’s mining sector showed an exceptional 38% increase. 

This increase pushed the percentage of sustainable energy used to power the blockchain to 52.6%, positioning BTC mining as the undisputed sustainability leader among major global industries.

In particular, three key metrics were considered to assess Bitcoin’s ecological success: mining hashrate, price, and total number of users. Hashrate has increased by 475% over the past four years, price by 164%, and the number of users by 289%.

Despite these significant increases, emissions from the mining sector have decreased by almost 10% over the same period. 

Batten noted that even if these metrics were to double during a four-year cycle, emissions would remain the same as they were at the beginning, an achievement no other sector has been able to achieve.

The fact that hashrate, measuring the total computing power connected to the blockchain, increased while total emissions decreased, suggests that emissions intensity, that is, emissions per kWh of power used, has decreased dramatically.