Friday, January 21

Miners Continue to Operate in China Despite Persecution! How is it possible?

After the Chinese government imposed restrictions on the development of cryptocurrency mining in its territory, the objective is not fully met. The difficulty of employing the ban arises when miners continue to operate, while hiding from government tracking.

Mining centers keep machines running when they use electrical power methods disconnected from the main supply chain. In addition to this, they hide their Internet connections to circumvent the detection of crypto data by regulatory entities.

Undercover operations

Despite the fact that the government of the Asian country has made efforts to reduce the influence and mining of cryptocurrencies in its territory, there are still miners operating. They constantly face the government stance of ending data centers that gather computing power to interact on the blockchain.

These operators achieve their mission with tactics devised to somehow “evade” the imposed restrictions. The miners continue to operate as they search for any method to get power without going under the radar of the Chinese authorities.

In this sense, those involved in cryptocurrency mining processes use “clandestine” sources of electricity, trying not to attract attention. An example of this is the use of hydroelectric generators, taking advantage of the flow of dams located in remote places. Some of them are concentrated in the provinces of Sichuan and Yunnan.

On the internet connection side, Chinese miners perform IP address diversions through various VPNs. This, in order to obfuscate the traffic coming from data centers and thus go “under” government surveillance.

Part of the covered operations are supported by miners located in other parts of the world, helping each other with mining pools. In this way, miners still inside China “hide” the processed blocks by not affixing a traceable identification to them.

Crypto community persistence

While the Chinese government has represented a considerable obstacle to the development of the crypto industry in the country, miners continue to try to keep mining centers alive. As part of the industry leaves China behind to seek new horizons, those who cannot get out are on their own.

On a daily basis, thousands of IP addresses are still being detected through which blockchain data would transit. This, according to the Chinese cybersecurity firm Qihoo 360, who estimates that more than 100,000 of them are currently active, exceeding bans.

Taking into account the scenario where these miners continue to operate, the persistence of the operators is highlighted. However, the Chinese government continues to seek a way to strengthen its ban on the crypto world, alluding to the heavy energy consumption generated.