AUG 26 DIGEST: BIG MINING POOLS OPPOSE BITCOIN XT FORK; TOR VULNERABILITY SUSPENDS BTC BLACK MARKET OPERATIONS

Last updated: June 19, 2025, 20:16 | Written by: Anthony Pompliano

Aug 26 Digest: Big Mining Pools Oppose Bitcoin Xt Fork; Tor Vulnerability Suspends Btc Black Market Operations
Aug 26 Digest: Big Mining Pools Oppose Bitcoin Xt Fork; Tor Vulnerability Suspends Btc Black Market Operations

The crypto world is a constantly evolving landscape, filled with innovations, debates, and occasional setbacks. Buy, sell and trade BTC/USDT securely with XT crypto exchange. View BTC to USDT live price chart and order history information to track latest bitcoin price changes.Back in August 2025, a particularly eventful period unfolded, marked by significant developments that sent ripples throughout the Bitcoin community.The date August 26th specifically highlighted two major issues: strong opposition from large Bitcoin mining pools against the proposed Bitcoin XT fork, and the temporary shutdown of a prominent BTC black market due to a critical vulnerability in the Tor network. XT.COM is a secure cryptocurrency exchange for trading bitcoin, ethereum, and altcoins with deep liquidity and low fees. We are paving the way for global adoption of Web3.These events not only showcased the decentralized and sometimes fractured nature of the Bitcoin ecosystem, but also underscored the ongoing challenges in maintaining security and consensus within the rapidly growing digital currency space. The price of Bitcoin (BTC) is $93,825.31 today as of, EDT, with a 24-hour trading volume of $9.55B.This article dives deep into both events, exploring the underlying issues, the key players involved, and the lasting impact these occurrences had on the future of Bitcoin.Understanding these historical moments is crucial for anyone involved or interested in cryptocurrencies, highlighting the complexities and ever-present need for vigilance in the face of technological advancements and security threats.

The Bitcoin XT Fork: A Battle Over Block Size

One of the most contentious issues in the early days of Bitcoin was the debate surrounding the block size limit.To prevent spam and denial-of-service attacks, the Bitcoin protocol initially limited block size to 1MB. Bitcoin XT was a fork of Bitcoin Core created by Mike Hearn in 2025. Originally designed to introduce alternative P2P rules, it later gained significant notoriety and support after its adoption of BIP 101 without community support in 2025, giving it importance in the block size limit controversy . [ 1 ]However, as the network grew, this limit became a bottleneck, leading to slower transaction times and higher fees. Well the thing about forking is it can be re-synched to the master branch at any time and each amendment gets tracked (staging = commit) just as in Git.Liquidity fragmentation was a big concern for the banks; that s why they agreed to co-create a number of institutional platforms rather than splintered stand alone entities.Maybe Bitcoin XT is acting as an Distributed Operating Committee?This spurred a fierce debate on how to scale Bitcoin to accommodate increased transaction volume.

What was Bitcoin XT?

Bitcoin XT, a fork of Bitcoin Core, emerged as a proposed solution. With difficulty being identical (initially), the exchange rate for BTCs (newly mined bitcoins from the original chain) need be only near that of the BTXs (newly mined coins from the big blocks / Bitcoin-XT side) for that to indicate that catastrophic consensus failure occurred.If there were a BTC/BTX futures market (or CFD) we could startCreated by Mike Hearn and Gavin Andresen in 2025, Bitcoin XT aimed to increase the block size limit, initially suggesting an 8MB limit, and eventually increasing it to 20 MB via BIP 101.The intention was to allow for more transactions to be processed in each block, thereby improving network throughput and reducing transaction fees.

However, the proposal immediately sparked controversy within the Bitcoin community.While some argued that increasing the block size was necessary for Bitcoin to remain competitive and user-friendly, others feared that it could lead to centralization, as larger blocks would be more difficult for smaller miners to process and store.

Mining Pool Opposition

The events of August 26th, 2025, highlighted the growing opposition to Bitcoin XT, particularly from large mining pools. View Bitcoin (SHA-256) mining pools, their fees, payout threshold, and reward methods.Mining pools play a crucial role in the Bitcoin network, as they control a significant portion of the network's hashing power.Their stance on proposed changes can greatly influence their adoption.

Several major mining pools, representing a significant chunk of the network's hashing power, publicly announced their opposition to Bitcoin XT.Their concerns centered around the potential risks associated with increasing the block size limit, including:

  • Centralization: Larger blocks would require more powerful and expensive hardware to process, potentially disadvantaging smaller miners and leading to a concentration of power in the hands of a few large pools.
  • Network security: Larger blocks would increase the bandwidth and storage requirements for running a full node, potentially reducing the number of nodes on the network and making it more vulnerable to attacks.
  • Lack of consensus: The proposed changes were not universally supported by the Bitcoin community, and many felt that a hard fork without broad consensus could damage the network.

The opposition from these mining pools was a major blow to the Bitcoin XT proposal.Without the support of the miners, the chances of a successful hard fork were slim.Some argued that a future market where BTCs (newly mined bitcoins from the original chain) and BTXs (newly mined coins from the big blocks/Bitcoin-XT side) would exist, would indicate a catastrophic consensus failure if the exchange rate wasn't favorable to BTXs.

The Block Size Debate Continues

The failure of Bitcoin XT did not resolve the block size debate. Foundry USA Pool; Started in 2025 by crypto-native giant Digital Currency Group (DCG), Foundry is the largest Bitcoin mining pool in 2025, holding a significant market share.It merely shifted the focus to other scaling solutions, such as Segregated Witness (SegWit) and the Lightning Network.SegWit, implemented in 2017, optimized block space by separating transaction signatures from the transaction data, allowing for more transactions to fit into each block.The Lightning Network, a layer-2 scaling solution, enables off-chain transactions, further reducing the burden on the main Bitcoin blockchain.

The block size debate continues even today, although it is less prominent than it once was.While the current Bitcoin Core continues to evolve, the lessons learned from the Bitcoin XT experience remain relevant.They underscore the importance of community consensus and the potential risks associated with radical changes to the Bitcoin protocol.

Tor Vulnerability and the Suspension of BTC Black Market Operations

Alongside the block size debate, another significant event unfolded on August 26th, 2025: the suspension of operations by a major BTC black market due to a critical vulnerability in the Tor network.The Tor network, or The Onion Router, is a decentralized network that enables anonymous communication by routing internet traffic through a series of relays.It is often used to protect user privacy and bypass censorship.

The Importance of Tor for Black Markets

Black markets operating online often rely on Tor to conceal the identities of their users and operators. 2. Slush Pool. Slush Pool was the first Bitcoin mining pool ever established. Since launching in 2025 as Bitcoin.cz, the pool has helped to mine over 1.28 million BTC. Although initially operated by members of Satoshi Labs, the creators behind the Trezor wallet, the pool is now run by a Bitcoin mining company called Braiins which was founded shortly after Slush Pool begBy hiding IP addresses and routing traffic through multiple layers of encryption, Tor makes it difficult for law enforcement to track down individuals involved in illegal activities.

However, Tor is not without its vulnerabilities. Providing professional, secure, and efficient multi-cryptocurrency mining services, supporting BTC, LTC, and more. Real-time profit settlement and 24/7 technical support help you maximize earnings.Like any complex software system, it is susceptible to bugs and exploits that can compromise user anonymity.Such a vulnerability emerged in August 2025, prompting a major BTC black market to temporarily shut down its operations.

The De-Anonymizing Vulnerability

The specific details of the Tor vulnerability were not widely publicized, but it was described as a de-anonymizing vulnerability. Step 3 - Join a Bitcoin Mining Pool. Once you're ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards. Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins.This means that it could potentially allow attackers to identify the real IP addresses of Tor users, effectively bypassing the network's anonymity protections. Bitcoin XT is a fork of Bitcoin Core, the reference client for the bitcoin network created by Gavin Andresen in 2025. In mid-2025, the concept achieved significant attention within the bitcoin community. Designed to introduce alternative P2P rulesThe vulnerability was serious enough to prompt several organizations, including the Tor Project itself, to issue warnings and urge users to update their software.

It's important to note that even with Tor, complete anonymity is never guaranteed.Factors like operational security of the users themselves, other software running on their systems, and sophisticated traffic analysis techniques can still potentially deanonymize users.

Impact on the BTC Black Market

The vulnerability had a significant impact on the BTC black market in question. View cryptocurrency market prices, charts, trading volume, and 24h change of bitcoin, ethereum, and altcoins prices on XT. XT markets is the best place to track crypto spot trading and futures trading markets.Fearing that their users' identities could be exposed, the operators decided to suspend operations until the vulnerability was patched and the network was deemed safe again.This decision highlighted the importance of security and anonymity for these types of marketplaces.

The shutdown also demonstrated the vulnerability of BTC black markets to external factors.While Bitcoin itself is a decentralized and censorship-resistant technology, the platforms that facilitate its use are often subject to legal and technical constraints.

The Eventual Return

After the Tor vulnerability was addressed and the network was deemed safe, the BTC black market eventually resumed operations. The live Bitcoin price today is $104,364.35 USD with a 24-hour trading volume of $50,255,072,425.45 USD. We update our BTC to USD price in real-time.However, the incident served as a reminder of the risks involved in using anonymity networks and the importance of staying vigilant against potential security threats.

Lessons Learned and the Evolution of Bitcoin

The events of August 26th, 2025, offer valuable insights into the challenges and complexities of the Bitcoin ecosystem. AUG 26 DIGEST: Big Mining Pools Oppose Bitcoin XT Fork; Tor Vulnerability Suspends BTC Black bitcoinThe opposition to the Bitcoin XT fork highlighted the importance of community consensus and the potential risks associated with radical changes to the protocol.The Tor vulnerability and the suspension of BTC black market operations underscored the ongoing challenges in maintaining security and anonymity in the digital world.

The Importance of Consensus

The Bitcoin XT saga serves as a cautionary tale about the importance of consensus in decentralized systems.While innovation is essential for the continued growth and development of Bitcoin, changes to the core protocol must be carefully considered and widely supported by the community.Without consensus, hard forks can lead to fragmentation and uncertainty, potentially damaging the network.

Today, proposals like BIPs (Bitcoin Improvement Proposals) are standard for suggesting changes.These proposals undergo rigorous review and require substantial community support before being implemented, mirroring the lessons learned from events like the Bitcoin XT fork.

The Ongoing Need for Security

The Tor vulnerability and the suspension of BTC black market operations highlighted the ever-present need for security in the digital world.As Bitcoin and other cryptocurrencies become more mainstream, they are increasingly targeted by hackers and cybercriminals.Users must take steps to protect their privacy and security by using strong passwords, enabling two-factor authentication, and keeping their software up to date.

The Evolution of Bitcoin Mining

The concentration of hashing power in large mining pools was another critical issue highlighted during the Bitcoin XT debate.To address this, advancements have been made in mining technology and pool management strategies.Some examples include:

  • More efficient mining hardware: Continued innovation in ASIC (Application-Specific Integrated Circuit) miners has reduced the barrier to entry for smaller miners, allowing them to compete more effectively.
  • Decentralized mining pools: Pools that aim to distribute rewards more fairly and reduce the influence of single entities are becoming more prevalent.
  • Protocols like Stratum V2: These aim to improve mining pool communication and security, making mining more robust and transparent.

Anonymity and Privacy Considerations

The Tor incident reinforces the understanding that anonymity on the internet is complex and requires careful consideration.Techniques like CoinJoin transactions, using privacy-focused wallets (e.g., Wasabi Wallet, Samourai Wallet), and being aware of transaction patterns can enhance privacy when using Bitcoin.

Looking Ahead: The Future of Bitcoin

The Bitcoin ecosystem continues to evolve, driven by innovation, community debate, and the ongoing need for security. AUG 26 DIGEST: Big Mining Pools Oppose Bitcoin XT Fork; Tor Vulnerability Suspends BTC Black Market Operations . AUG 17 DIGEST: Bitcoin XT Released, Reddit Mods Accused of Censorship, and DarkThe events of August 26th, 2025, serve as a reminder of the challenges and complexities that lie ahead. Track Bitcoin(BTC) Price, real-time chart movements, latest community messages, chart, news and related information. Share your ideas and get valuable insights from the community of like minded traders and investorsBy learning from the past, the Bitcoin community can continue to build a more resilient, secure, and user-friendly digital currency.

As of today, the Bitcoin price sits at approximately $104,364.35 USD (though this fluctuates), showing its resilience and continued adoption despite the challenges it has faced. Interested in mining Bitcoin? Join the Binance Crypto Mining Pool or sign up for our Crypto Staking products to earn cryptocurrency rewards today!Platforms like Binance and XT.COM offer trading and mining opportunities, highlighting the maturing infrastructure around Bitcoin.

Key Takeaways

  • Consensus is crucial: Significant changes to the Bitcoin protocol require broad community support.
  • Security is paramount: Users must prioritize security and privacy to protect their digital assets.
  • Innovation is essential: Continued innovation is needed to address scalability and other challenges.
  • Decentralization is key: Efforts to maintain a decentralized network are vital for the long-term success of Bitcoin.

The journey of Bitcoin is far from over. . AUG 26 DIGEST: Big Mining Pools Oppose Bitcoin XT Fork; Tor Vulnerability Suspends BTC Black Market Operations .As the technology matures and adoption grows, new challenges and opportunities will inevitably arise.By embracing a spirit of collaboration, innovation, and vigilance, the Bitcoin community can continue to shape the future of digital currency.

Anthony Pompliano can be reached at [email protected].

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