As someone who has closely followed the Bitcoin mining scene, I share Casey Rodarmor’s concerns about the increasing centralization of the sector. The latest Bitcoin halving has only intensified this divide between large and small-scale miners. While larger entities continue to upgrade their capabilities, smaller miners struggle to keep up.
Following the fourth Bitcoin halving, there will be increased scrutiny towards the cryptocurrency mining industry. This significant event, which cuts mining rewards in half, has widened the gap between large and small-scale miners. The larger players continue to expand their resources, while smaller miners face challenges in keeping up.
Casey Rodarmor, the innovator behind Bitcoin Ordinals, expressed worries over the centralization tendencies in Bitcoin mining and emphasized the importance of this decentralization aspect for preserving Bitcoin’s core value proposition – its resistance to censorship.
From an outside perspective, Bitcoin’s unique appeal lies in its censorship-resistance, a feature ensured by the decentralized process of miners competing to validate transactions and create new blocks. However, the current state of Bitcoin mining decentralization is less than ideal. Large mining pools, once believed to contribute to the network’s dispersed nature, now pose a significant threat to this very characteristic.
— Casey (@rodarmor) April 24, 2024
It has come to notice that several prominent mining pools, which were once believed to operate independently, now seem to align with AntPool in terms of decision-making for transaction selection.
The same apprehensions are reflected in data showing that Antpool and Foundry are currently responsible for producing a large percentage of Bitcoin blocks. This significant control raises concerns about Bitcoin’s move towards becoming more centralized, which could potentially affect its unique value proposition.
He advocated for the adoption of Stratum V2, an updated mining protocol that promotes greater autonomy for miners in transaction selection. Developed jointly by Braiins Pool and Bitcoin core developer Matt Corallo, Stratum V2 also aims to enhance mining efficiency and security.
Mining participants are invited to experiment with the latest protocol and share their observations regarding its efficiency and dependability. This undertaking signifies a crucial step towards resolving centralization issues and preserving Bitcoin mining’s core decentralized philosophy.
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2024-04-25 14:46