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Braidpool emerges as a groundbreaking protocol proposal, striving to completely decentralize Bitcoin mining pools. This innovative approach leaves no room for centralized control, marking a significant shift in the mining landscape. Spearheaded by Kulpreet Singh, the project recently received a grant from the Human Rights Foundation, highlighting its potential impact, according to <a href="https://bitcoinmagazine.com/technical/braidpool-a-second-competitor-in-decentralizing-mining" rel="noopener noreferrer nofollow">Bitcoinmagazine</a>.
Unlike traditional mining pools, Braidpool mandates each miner to operate their own full node, decentralizing block template construction. It innovatively tracks miners' contributions through "weak blocks," which are valid Bitcoin blocks not meeting the network's difficulty target but a lower one set within Braidpool. This system replaces the conventional method of sharing the coinbase reward, ensuring transparent and equitable distribution of mining rewards.
Miners collectively control the coinbase reward, requiring a 2/3rds signing majority for payouts. This system periodically updates the transactions that pay out each miner according to their work contribution.
However, Braidpool faces challenges in bootstrapping and attracting miners due to the absence of a centralized entity to subsidize initial uncertainties. The protocol's success hinges on providing a seamless and intuitive user experience, crucial for encouraging miners to participate. The creators plan to mitigate initial mining risks by involving financial market makers, introducing futures, options, and other financial instruments related to mining activities.
Braidpool's emergence comes at a time when the <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a>, notably through <a href="https://ultramining.com/news/en/innovative-mining-pool-ocean-launches-with-jack-dorseys-backing/" rel="noopener noreferrer nofollow">Ocean</a>'s recent activities, seeks solutions to counteract centralization pressures. While Ocean contributes architectural changes, its growth stagnation highlights the need for alternatives like Braidpool, which offers a different path without contentious decisions.

Braidpool Revolutionizes Bitcoin Mining with Decentralization Push

Ultramining_Eng

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