Bitcoin Core Developer Launches Alternative Mining Protocol
cryptocurrency-event-2018

Developer Matt Corallo, which is a Bitcoin core developer, has recently launched a mining pool that aims to increase how decentralized Bitcoin mining is because this industry has been getting increasingly monopolized in the recent months.

According to Corallo, miners have no control over the network, as they use pools that belong to other companies. The dev believes that this can lead to vulnerabilities within the network. Because of this, he intends to create his own mining pool in which the users can create their own block templates instead of using the ones created by the pool owners.

This new pool uses BetterHash and has a different setup than many other major Bitcoin mining pools like Bitmain and Antpool, for instance, as they use the Stratum mining protocol.

The Problem With Stratum, According To Corallo

Matt Corallo has stated that with Stratum there is a serious problem in which you get the block templated and the information on how to build them but you do not get any control over what you are mining. This is, according to him, entirely left up to the pool and they could use a 51% attack if they wanted to, censor transactions or even make double spending scams.

The Issue With Bitmain And The 51% Specter

The Bitcoin community, which includes Corallo, is increasingly getting worried about how Bitmain, a Chinese company that is increasing its presence in major pools, might take over 51% of the network. Bitmain currently has control of 42%of the Bitcoin hashrate and the number just keeps climbing.

While 42% is still not 51%, Bitmain has funded ViaBTC, which already has 9% of the hashrate. ViaBTC is still independent, but Bitmain was the main investor of the company during the latest investment round that has happened. It is important for the community, Corallo believes, that the decentralization of Bitcoin is maintained. As Bitmain continues to grow, it represents a danger to the stability of the network and an alternative has to be designed.

This new initiative would work in a similar manner but the miners would not be controlled by the pool owners.

“Miners are not the miners again, rather than the miners being the pools”, stated Corallo to summarize.

Bonus Material: everyone should check out this video for more insights on how mining pools work.

 

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