Jack Dorsey Backs New Bitcoin Mining Pool to Decentralize Rewards
Jack Dorsey, co-founder of Twitter and a supporter of Bitcoin, is leading a $6.2 million seed round for Mummolin, the parent company of Ocean, a new Bitcoin mining pool. The funding will support the launch of Ocean, which aims to decentralize the mining process and give miners more control over block rewards and transaction fees.
A New Type of Pool for True Decentralization
Ocean is positioning itself as a transparent and noncustodial pool where miners receive block rewards directly from Bitcoin. Luke Dashjr, Mummolin co-founder and Bitcoin Core developer, believes that traditional mining pools need to change in order for Bitcoin to truly exist as a decentralized currency.
Eliminating Centralization Risks
Mining pools typically hold custody of block rewards and transaction fees before distributing them among miners. Ocean’s non-custodial payout system removes this risk and eliminates the undue influence that pools can have over miners.
A Solution to Centralization Concerns
Jack Dorsey sees Ocean as a solution to the potential centralization issues that could arise in Bitcoin mining. He believes that supporting projects like Ocean is not only good for Bitcoin but also beneficial for his own companies.
The Launch of Ocean
Ocean was announced at the Future of Bitcoin Mining Conference, held at Barefoot Mining’s hydroelectric dam in rural South Carolina. Barefoot Mining, the first client of Ocean, has repurposed the dam to mine Bitcoin on a large scale using excess energy.
Closing Thoughts: Addressing Centralization Concerns in Mining
The launch of Ocean comes at a crucial time, as Bitcoin’s fourth halving event is expected to significantly decrease mining incentives. By promoting transparency and giving miners more control, Ocean aims to reshape the mining process and contribute to the decentralization of Bitcoin.
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