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Analysis News

Mining will become decentralized – finally!

One of the most important arguments of crypto enemies is the fact that mining is becoming more and more centralized due to the growth of mining pools. Now this argument can be killed by the new protocol developed by Braiins.

Individual kitchen mining has become a history, now miners are pooling, and the victory of one brings income to everyone from the pool. But the problem with the pools is that recently only 3 mining pools control more than 50% of bitcoin mining. Moreover, it is pools that vote for upgrades and hard forks. And besides, the pool determines which transactions to include in the block and, in principle, can censor transactions that they don’t like.

Braiins is considered one of the companies that controls one of the largest Bitcoin mining pools. But it now proposed the new Stratum V2 protocol, which can change the relationship between miners and the pool, and generally solve the issue of decentralization of mining. Using this protocol, the miners themselves, and not the pool, will decide on the assignment of transactions to the block.

Bitcoin maximalists enthusiastically received the news. Jimmy Song, a Bitcoin developer and educator, said:

– If this protocol does everything it promises, ‘mining centralization’ as an argument will be completely dead.

But much will depend on whether all pools accept the new protocol. According to Braiins co-CEO Jan Capek:

– Getting everybody on board is a matter of realizing the benefits on the security and efficiency side, which in turn leads to saving some operational costs.

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