Mining centralisation is one of the biggest problems in Bitcoin at the moment, worse case it could lead to a 51% attack or a PoW change, both will undermine one of the strongest fundamental values of Bitcoin. For individual miners it is in their own interest to avoid this and now there is a good way to do it. Take action now and reduce the power of big mining pools and enable yourself to decide about the blocks to be produced!
Some mining pools are very big, when they collude they could execute different kind of attacks on the network.
Here the original article:
https://bitcoinist.com/core-dev-alternative-bitcoin-mining/
Join the new mining pool
Bitcoin Core dev Matt Corallo created the ‘Bettterhash’ protocol that enables miners to create block templates themselves instead of the mining pool. This way miners can run their own full node and decide about the transactions to be included in the blocks. This will make it impossible for a mining pool to involve in selfish mining, sensor transactions or execute a 51% attack. All they can do is mining blocks as they should do.
A very good explanation about betterhash
To bring his code to work Matt started a mining pool that is using Betterhash. When you stop mining with your current pool and start mining with this new pool you will improve miner decentralisation and thus make Bitcoin and your future income more secure.
It is in your own best interest
Miner centralisation is a threat to the entire Bitcoin network, but especially for the miners themselves. An attack on the Bitcoin network could crash the price and make mining (temporary) unprofitable. An even bigger threat is that the Bitcoin community start to panic and a PoW change is done. This will make the expensive mining equipment worthless overnight. By taking away the power of the big mining pools these threats will disappear.
Will it resolve the problem of mining centralisation?
The choice is on the individual miners. When another pool is more profitable and the risk seems to be low they can decide to stay with their current pool. Also, it might be to much effort to switch. However, the existence of the pool is already an important step in the right direction because the legacy pools know that their customers will switch when they misbehave. This is exactly the same game theory as with Bitcoin in the financial system, they will have to deliver a better service to not lose their customers on the new competition.
Conclusion:
Do what is good for yourself and for Bitcoin and start mining on the new pool that uses Betterhash. It might be smart to wait and see for a while whether there are bugs or other threats that could interrupt your operation and thus cost you money, but keep an eye on it and better switch early to avoid trouble than when it is too late! Re-decentralise mining and add to the value of the entire network and your future income!
Disclaimer
This is no financial advice, just my view on the market.
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