OCEAN: Jack Dorsey Backs Initiative to Decentralize Bitcoin Mining
In a bid to address concerns about the increasing centralization of Bitcoin mining, Jack Dorsey, co-founder of Twitter and CEO of Block, Inc, is backing a new initiative called OCEAN. Led by Bitcoin Core developer Luke Dashjr, OCEAN aims to decentralize Bitcoin mining globally through a transparent and non-custodial mining pool. The initiative has recently secured $6.2 million in seed funding, with investors including Accomplice, Barefoot Bitcoin Fund, MoonKite, NewLayer Capital, and the Bitcoin Opportunity Fund.
Transparent and Non-Custodial Mining Pool
Unlike traditional mining pools, OCEAN offers a unique approach to the distribution of block rewards. Miners receive their block rewards directly from the coinbase transaction, eliminating the risk of traditional pools withholding payments. This non-custodial payout system ensures that miners have full control over their earnings and reduces the influence that pools can have over individual miners.
“The role of mining pools must change for Bitcoin to exist as a truly decentralized currency,” emphasized Luke Dashjr. “OCEAN is a new type of pool that enables miners to be truly miners again. We are launching as the most transparent pool and also the only non-custodial pool where miners are the recipients of new block rewards directly from Bitcoin.”
Focusing on Key Issues in the Mining Industry
OCEAN aims to address three main areas in the mining industry:
- Centralization of block template construction: While the global distribution of hashrate may seem decentralized, the control over block template construction remains in the hands of a few individuals and the pools they control. OCEAN plans to introduce a mechanism that allows miners to independently perform block template construction while still benefiting from being part of a pool. This will reduce the disproportionate influence that certain entities have over the Bitcoin network.
- Custodianship: Most mining pools act as custodians of funds, introducing counterparty risks to miners. OCEAN, on the other hand, operates as a non-custodial mining pool, ensuring that miners receive their payments directly from the Bitcoin network. This eliminates the need for miners to rely on pools as intermediaries and reduces the risk associated with custodianship.
- Transparency: OCEAN takes a transparency-first approach, providing miners with visibility into the underlying transactions they commit their hashrate to. By disclosing all transactions included in their block templates before mining, OCEAN creates a self-auditing system that incentivizes good faith actions. This transparency empowers miners to make informed decisions about where they direct their hashrate, promoting a more decentralized mining ecosystem.
Aiming for Bitcoin Decentralization with Future Upgrades
OCEAN sees itself as a catalyst for Bitcoin decentralization and plans to roll out additional phases of improvements and upgrades in 2024. By addressing the centralization concerns and enhancing transparency, OCEAN aims to create a more resilient and decentralized Bitcoin network.
Hot Take: Promoting a Truly Decentralized Bitcoin
The backing of Jack Dorsey and the launch of OCEAN mark a significant move towards decentralizing Bitcoin mining. By addressing key issues such as centralization, custodianship, and transparency, OCEAN sets a new standard for mining pools. With its non-custodial payout system and focus on independence, OCEAN empowers miners to play a more active role in the Bitcoin network, ensuring a truly decentralized currency. As the initiative continues to evolve and introduce further upgrades, it has the potential to revolutionize the mining industry and further strengthen Bitcoin’s decentralized nature.
