Decentralizing bitcoin Mining
Today, Mummolin, Inc, which is based in Wyoming, has completed a seed funding round of $6.2 million. The funding was led by Jack Dorsey and included prominent investors such as Accomplice, Barefoot bitcoin Fund, MoonKite, NewLayer Capital, and the bitcoin Opportunity Fund. The purpose of the funding was to launch OCEAN, an initiative designed to decentralize bitcoin mining on a global scale, according to a press release sent to bitcoin Magazine.
The Problem of Mining Pool Centralization
As part of the announcement, Jack Dorsey, who is the co-founder of Twitter and CEO of Block, Inc, stated that “OCEAN is solving a problem for Bitcoiners that I think all of us feel—further centralization of mining pools that could plague bitcoin, and how that risks a bunch of bitcoin attributes that we hold dear.” He expressed his enthusiasm for being part of a project that is beneficial for bitcoin and his personal companies.
OCEAN is unique in that it is the first transparent and non-custodial platform where miners receive block rewards directly from the coinbase transaction, eliminating the risk associated with traditional pools withholding payments from individual miners. Mummolin co-founder and President Mark Artymko explained that traditional bitcoin mining pools take exclusive custody of block rewards and transaction fees before splitting them up amongst miners. This gives them the ability to withhold payment from individual miners, whether by their own choice or by legal requirement. OCEAN’s non custodial payouts remove this risk and the pool’s undue influence over miners.
Changing the Role of Mining Pools
Long-time bitcoin Core developer and Mummolin co-founder, Luke Dashjr, emphasized that “The role of mining pools must change for bitcoin to exist as a truly decentralized currency.” OCEAN aims to bring this change by enabling miners to be direct recipients of new block rewards from bitcoin. It also aims to provide transparency and security to miners by eliminating the negative impact of centralization.
Focusing on Mining Industry Issues
When the bitcoin Magazine asked about the focus of the OCEAN team, they highlighted three main areas:
1. Centralization of block template construction
OCEAN’s Global Head of Sales, bitcoin Mechanic, pointed out that while hashrate may be distributed globally, the intelligent parts of mining are controlled by very few individuals and the pools they control. OCEAN will act as a solution to this problem, allowing miners to perform block template construction independently while still benefiting economically from being in a pool.
Jason Hughes, VP Development & Engineering at OCEAN, explained that most pools today act as custodians of funds, introducing counterparty risk to miners similar to keeping bitcoin on an exchange. OCEAN aims to eliminate this risk by being non-custodial, ensuring that miners get paid directly from the bitcoin network in the coinbase transaction.
Dashjr highlighted that most pools do not give miners visibility into the underlying transactions. This opaqueness creates a scenario where pools can do what they want without having to answer to their miners. OCEAN takes a transparency-first approach by publicly disclosing all transactions included in its block templates to miners before mining.
Revolutionizing bitcoin Mining
OCEAN aims to revolutionize bitcoin mining and it plans to roll out additional phases of bitcoin decentralization improvements and upgrades in 2024. For more information, visit their website at OCEAN.xyz.
### News source: bitcoinmagazine.com