Twitter Co-founder Jack Dorsey Backs New BTC Mining Pool to Promote Decentralization

Twitter co-founder and Bitcoin advocate Jack Dorsey is supporting a new Bitcoin mining pool called Ocean, which aims to decentralize the mining process and provide more transparency. Dorsey has led a $6.2 million seed round for Mummolin, the parent company of Ocean, according to an announcement on Nov. 29.

The Need for Decentralization

Bitcoin mining pools have been a topic of concern in the cryptocurrency community, as they often hold exclusive custody of block rewards and transaction fees. This gives them the power to withhold payments from individual miners, creating a centralized system that goes against the principles of Bitcoin.

Luke Dashjr, a co-founder of Mummolin and a long-time Bitcoin Core developer, believes that mining pools must change for Bitcoin to truly exist as a decentralized currency. He stated, “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 noncustodial pool where miners are the recipients of new block rewards directly from Bitcoin.”

Introducing Ocean

Ocean, the new Bitcoin mining pool, aims to reshape the mining process by providing more transparency and allowing miners to receive block rewards directly from Bitcoin instead of through mining pools. This eliminates the risk of mining pools withholding payments from individual miners.

Mark Artymko, co-founder and president of Mummolin, highlighted the risks associated with traditional mining pools. He stated, “This gives them the ability to withhold payment from individual miners, whether by their own choice or by legal requirement. OCEAN’s non-custodial payouts directly to miners from the block reward remove this risk and the pool’s undue influence over miners.”

Jack Dorsey’s Support

Jack Dorsey, known for his support of Bitcoin, is confident that Ocean will address the issue of centralization in mining pools. He stated, “When I see a project that is good for Bitcoin broadly, and that’s also good for me and my companies personally, it becomes a simple decision for me and I’m happy to be a part of it.”

The Future of Ocean

The launch of 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 convert excess energy into Bitcoin mining.

Ocean’s launch comes 139 days before Bitcoin’s fourth halving event, expected to occur on April 17, 2024. This event will significantly reduce the mining reward per block, decreasing incentives for Bitcoin miners.

With Dorsey’s support and the aim to promote decentralization, Ocean could play a crucial role in reshaping the Bitcoin mining landscape.