A Second Pool Launched By Bitmain Bitcoin
After running the thirdlargest bitcoin mining pool, a second mining pool’s launch is announced by Bitmain. According to them, the idea of the new pool is not to replace the previous and very popular platform Antpool but to increase the stability of bitcoin network.
Therefore, unlike the others, this new mining pool will be open sourced to its user community. The international marketing manager of the company, Bitmain, said that the goal of their company is to promote a decentralized system of bitcoin mining network. The aim is also to bring stability, efficiency and service for all mining pools by setting benchmarks.
A reduction of “orphan rates” is the key focus of the software to bring a material impact on the miner profitability. It is possible in bitcoin mining to find the same block around the same time, thus, creating two blockchains, but obviously only one that becomes the longest chain is accepted as official and final by the network. The other blockchain is eliminated which is called an orphan and every time this occurs, one of the members of the network tends to miss the revenue.
Though it is not more than 0.5% usually in a week, it makes bitcoin mining a low margin business. Therefore, a “PoolWatcher” function is created as one of the primary features to combat this. This looks for signals of another pool and immediately switch to that block. In the case of other miners finding a block, these clusters enable faster transmission of data ensuring that the pool switches to the next block.
Possibility of centralization
The idea behind the new software is to decentralize bitcoin mining but it definitely carries a risk that these firms will accumulate a bigger share in the market with two pool services. In the short run, the gain seems neutral, though. Since Antpool is run but them, it is possible that their users migrate to the new pool for shortterm gains.
Since mining pools tend to share rewards that they get on pooled resources, the bigger size of the pool will lead to a bigger reward. If people join larger pools, the likelihood of them earning more for their effort will increase.