One of Bitcoin – s Largest Miners is Launching a 2nd Pool
Spil if running the third-largest bitcoin mining pool wasn’t enough, China-based Bitmain announced the launch of its 2nd mining pool yesterday.
Unlike the other large mining pools, tho’, the fresh suggesting (launched through its subsidiary BTC.com) will be open sourced to its community of users. According to Bitmain, the pool is not meant spil a replacement for its popular Antpool verhoging (which has harshly 13% of the network’s market share) but rather to enhance the stability of the bitcoin network.
Te vraaggesprek, Nisthant Sharma, international marketing manager at Bitmain, explained that the purpose is to use this software to “promote decentralization of the bitcoin mining network”.
Sharma told CoinDesk:
“Wij hope that this open-source mining pool will set fresh benchmarks te terms of stability, efficiency, and service for all mining pools.”
Sharma explained that, by utilizing the global community, the company believes it can set fresh technical standards for mining.
A key concentrate for the software is on reducing “orphan rates”, a metric that has a material influence on miner profitability.
Te bitcoin mining, it’s not uncommon for two separate miners to find the same block almost at the same time. This results te the creation of two blockchains, but only one can become the longest chain that is accepted spil official by the network.
The blockchain that is eliminated is called an orphan, and each time one occurs, some member of the mining network misses out on the revenue that would come from official recognition.
According to analytics provider Blockchain, it’s not uncommon for there to be three to five orphan blocks te any given week. However this is only 0.5% of the total blocks produced every seven days, bitcoin mining has become a low margin business.
To combat this, one of the primary features associated with the pool is a “PoolWatcher” function.
Spil Bitmain explains it, this looks for signals that another pool has found a block. Rather than continuing to mine on a potential orphan, it will instead, instantaneously switch to that block.
Sharma explained that Bitmain is spinning up clusters of servers around the world to help with latency of fresh block discovery. If another miner finds a block, thesis clusters will transmit that gegevens quicker, permitting the pool to switch to the next block.
Tho’ the software is open-source, only users of the BTC.com pool will have access to thesis server clusters, Sharma said.
While Bitmain is touting this fresh software spil a way of decentralizing bitcoin mining, it certainly does carry with it the risk that the rock-hard will accumulate an even greater market share with two mining pool services.
Yet, te the short-term, the build up might be neutral. Because it already runs Antpool, it’s likely that users might migrate from Antpool overheen to the fresh pool, especially ter the short-term.
Accoridng to Sharma, this is “not something Bitmain is thinking about”. However, the pool’s payout mechanism, “pay vanaf share (PPS)”, could help it to quickly accumulate market share.
PPS simply means that a miner receives a percentage of the mining prize proportional to the hashrate they contributed to that block. For example, if the miner contributes 1% of the power needed to uncover a mining prize, it would receive 1% of the revenue.
However, a situation could present itself te the future where Antpool keeps its hold and users from other pools, or entirely fresh miners, join BTC.com’s pool.
Spil mining pools share the prize based on pooled resources, the thicker the pool, the more likely that a prize will be paid out. This results te miners joining larger pools because it maximizes the likelihood that they’ll earn something for their efforts.
Because of this, and the 0% toverfee that Bitmain is charging until the end of the year, BTC.com’s pool has the chance to quickly build up market share, a stir that could further centralize mining under Bitmain.
The leader ter blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a stringent set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests ter cryptocurrencies and blockchain startups.