The Bitcoin Core developer Matt Corallo has released a Bitcoin Improvement Proposal (BIP), with whom he would like to demoralize the Bitcoin Mining through an Amendment to the Mining Protocol, again discreetly.
Whether, and how strongly, the Bitcoin Mining is centralized, is a hotly debated topic. The fact is that the ASIC miners market, as well as the Mining Pools are dominated by the company Bitmain. For a long time now, therefore, the allegation against the company of CEO, Jihan Wu, that Bitmain will soften the decentralized idea of Bitcoin. The Mining Pools from Bitmain (BTC.com and Antpool) currently, around 42% of Bitcoin Mining Power. For this purpose, the ViaBTC Mining Pool, to be close to Bitmain, and at least a further 8 percent of the Bitcoin Mining Power plays. Due to this concentration of Hash-Power, Many will see a centralization in the case of Bitmain, can affect decisions in the Bitcoin Network.
This is also Matt Corallo, a major developer of Bitcoin Core, and is also known under the Twitter name TheBlueMatt as well. Corallo has to publish decided on Github in a Bitcoin Improvement Proposal (BIP) to which the Bitcoin Mining aims by a new Mining Protocol to decentralize.
The proposal is under the name of BetterHash known to, and aims to change the way miners. On Github, he writes:
We propose two new Mining protocols, to rethink the way in which work in the Bitcoin network is generated, which may possibly be the effective Mining-decentralization increases dramatically.
According to Corallo, the Mining of Bitcoin is subject to many constraints, which promote the centralization. One of the biggest reasons for Corallo is the most widely used Mining Protocol: Stratum. The Stratum Protocol is difficult to implement and poorly documented. Therefore, Pool operators Block have to create Templates for your Clients and distribute them. As a result, the diversity of the Block Templates in the network, however, is highly limited, on the other hand, there is the swimming Pool operators have a very strong influence. For example, Pool operators can use their position of power to force the individual Miner, decisions about network Upgrades. Because of this centralization, a critical manner is reduced, but also the censorship resistance of the network significantly.
Corallo would like to replace the Stratum Protocol by a new Protocol, which is the creation of new blocks and the payouts is divided into two protocols – Work and Pool. This Change in the Protocol would allow miners the transactions, verify them in your blocks, self-select, rather than leave it to the operators of Mining Pools. Currently, Miner, try to use your own Block Templates, alone mines or in smaller, more decentralized Mining, to resort Pools. As a result, you but the risk of irregular payments/ Rewards.
BetterHash not forcing the Miner while your own Block to create Templates. However, the Option for it at least. Thus, miners could maintain their autonomy and at the same time of large Mining Pools and, consequently, stable payouts to benefit.
From the point of view of the entire Bitcoin network, it would be a decentralization, because the Power of the Mining Pool is limited. In addition, the new Protocol would reduce the risk that a government, a Central Mining Pool-instructing operators of certain transactions, prohibit, and censor. However, would have to show from our point of view, but in practice, if the operator of Mining Hardware to actually create your own Block Templates and use. Ultimately, it is from our point of view, but a very interesting proposal.
Disclaimer: trading crypto currencies carries a large financial risk and can result in total loss of the invested capital. Coin-hero.de does not constitute investment advice and recommendation within the meaning of the securities trading act (WpHG). The website content is intended solely for the Information and entertainment of the reader. The statements made here represent only our own opinion and not a recommendation to buy. Please do your own research, before you invest in crypto-currencies. We do not accept any liability for any kind of damage. Please also read our disclaimer in the imprint. —