Bitcoin Cash criticized: How decentralized are BCH Full Nodes really?

The Twitter account BitPico accuses the popular representatives of the Bitcoin Cash network, Roger Ver and Jihan Wu, of hosting full nodes via a centralized cloud server. What does this mean for the security of Bitcoin Cash?

Bitcoin revolution has many vocal opponents on Twitter

The crypto currency there is often called “BCash”, much to the chagrin of front man Roger Ver. The old-established Bitcoin revolution community makes it clear time and again that Bitcoin Cash is not “the real Bitcoin”. Now new accusations are circulating against Bitcoin Cash: Bitcoin Revolution Review 2018 » Full Scam Check

Full Nodes about Cloud Server: BitPico is a Twitter account of a group of Bitcoin developers, miners and whales. As they recently twittered, a stress test showed that many of the full nodes start with the same IP address:

Perhaps somebody from the #bcash $bch #BitcoinCash team can explain this? #cryptocurrency #blockchain #decentralized #magic #trick #fail @rogerkver @JihanWu If you are running a bitPico Cash stress test node please update your code ASAP. Thanks! pic.twitter. pic.twitter.com/0GfJy8xDZM

Server farms, a single point of Bitcoin revolution

For the layman, it is not possible to see directly what the problem is. After all, it is healthy for the network to have many full nodes as tested here: onlinebetrug.de. A Full Node is a computer that has the entire blockchain stored. These entities play an important role in the network because they check the validity of the blocks produced by the miners according to the consensus rules. So the more full nodes there are around the Bitcoin revolution world, the more secure the network will be.

However, looking at the screenshot you can see that many Full Nodes have an IP address of 47.88.xxx.xxx. This is an indicator that they are in the same place. Probably this is a rented server farm where someone runs Full Nodes.

Only eleven minutes after BitPico’s tweet, 800 full nodes were banned. Krypto-OG, DanDarkPill, expresses itself ironically with a Star Wars reference on the subject:

While it’s good that there are many full nodes on the network, it’s problematic if they’re all in the same place. If they are hosted on the same service, the total number of nodes is deceptive when it comes to the degree of decentralization. An environmental disaster or a service provider could quickly ensure that a large number of full nodes are no longer part of the network. A spatial concentration of nodes also gives rise to fears that the block chain will then be under the control of a single party. All in all, a concentrated number of nodes in a single server farm therefore conflicts with the desired decentralization of a crypto currency.