As if running the third-largest bitcoin mining pool wasn’t enough, China-based Bitmain announced the launch of its second mining pool yesterday. Unlike the other large mining pools, though, the new offering (launched through its subsidiary BTC.com) will be open sourced to its community of users. According to Bitmain , the pool is not meant as a replacement for its popular Antpool platform (which has roughly 13% of the network’s market share) but rather to enhance the stability of the bitcoin network. In interview, Nisthant Sharma, international marketing manager at Bitmain, explained that the goal is to use this software to "promote decentralization of the bitcoin mining network". Sharma told CoinDesk: "We hope that this open-source mining pool will set new benchmarks in terms of stability, efficiency, and service for all mining pools." Sharma explained that, by utilizing the global community, the company believes it can set new technical standards for mining. Profit, profit A key focus for the software is on reducing "orphan rates", a metric that has a material impact on miner profitability. In bitcoin mining, it’s not uncommon for two separate miners to find the same block almost at the same time. This results in the creation of two blockchains, but only one can become the longest chain that is accepted as official by the network. The blockchain that is eliminated is called an orphan, and each time one occurs, some member of the mining network misses out on the revenue that would come from official recognition. According to analytics provider Blockchain, it’s not uncommon for there to be three to five orphan blocks in any given week. Though this is only 0.5% of the total blocks produced every seven days, bitcoin mining has become a low margin business. To combat this, one of the primary features […]
