SpiderPool: The first decentralized mining pool to make Bitcoin mining decentralized again

One of Bitcoin’s key advantages is its ability to build and verify data. As a decentralized ledger and distributed system, the blockchain infrastructure prevents any centralized entity from manipulating the network for its purposes, which is why there is no single authoritative entity in the Bitcoin network.

In theory, mining power should be distributed across different nodes worldwide, meaning that a single entity will not control the hash rate. In reality, the vast majority of Bitcoin mining machines are connected to mining pools, and currently, Bitcoin’s nodes and mining power are mostly controlled by large mining pools.

Data source: BTC.com mining pool ranking

According to BTC.com mining pool statistics, the top 15 mining pools control more than 99% of the computing power of the entire network, and the top 3 mining pools control almost 70% of the computing power of the entire network, which has raised concerns among many native Bitcoin ecosystem supporters.

What is a 51% attack, and what is the likelihood of it happening?

The possibility of a 51% attack is increased since these mining pools control most of the network’s computing power. A 51% attack (aka Majority Attack) is an attack on a Bitcoin blockchain by an entity or group that controls more than 50% of the network. If a party were to gain this much network control, it would have the power to alter the blockchain.

Theoretically speaking, if a bad user or bad user organization with more than 50% of Bitcoin’s hashrate were to collaborate, they could override the network’s consensus mechanism and perform malicious behaviors such as double-spending, preventing new transactions, and reverse unconfirmed transactions. In addition to the high weightage of the top three mining pools in the total network computing power, the data presented above does not truly show the situation of the current centralized mining pools.

For example, many mining pools at lower ranks do not create blocks themselves but directly transfer their mining pool computing power to the top-ranked mining pools. These small mining pools only exist as middlemen or are branded as independent mining pools to attract computing power, and they do not have the technology or funds to bear the risk of fluctuations in luck value.

According to the research information by the SpiderPool team, there may be only 5-6 companies in the entire market that collect transactions and create block templates by themselves. This also means that Bitcoin’s decentralized accounting, which we are proud of, is no better or even worse than that of other blockchains, which directly affects its anti-censorship characteristics.

SpiderPool’s thoughts on the sustainable development and prosperity of the Bitcoin ecosystem

Since 2018, SpiderPool has specialized in the cryptocurrency mining pool sector. We have established and operated multiple mining pools, including Ethereum (POW), BCH, BSV, ETC, and other cryptocurrency mining pools. Over the past 6 years, we have verified and accumulated a large number of excellent technical solutions for mining pools in operation, and most of the team members have more than 10 years worth of mining experience. Our BTC mining pool has grown into the sixth-largest centralized mining pool according to our network computing power.

With our passion for mining and years of experience in mining pools, SpiderPool hopes to use our years of accumulated technical advantages and rich self-developed experience, based on the orderly and sustainable development of the entire Bitcoin mining ecosystem, to become a mining pool that contributes more to the entire Bitcoin ecosystem and gradually upgrade and implement more decentralization into mining pools.

We believe that having our decentralized mining pool can solve the problems below:

• Enable miners to obtain relatively stable income, return the power of transaction selection and allocation back to the miners who work, and protect the decentralization of the Bitcoin ecosystem.
• To prevent centralized mining pools from manipulating and deducting miners’ income, the income calculation methods should be public and the distribution data transparent.
• Change the current centralized mining pool custody income situation into a non-custodial situation. This would prevent problems such as centralized mining pools misappropriating miners’ assets (which has happened before) and eliminate the risk of potential malicious behavior by centralized mining pool operators.
• Prevent 51% attacks effectively by preventing a single entity or a few entities jointly from controlling more than half of the network mining power. This control may enable them to perform double-spend attacks, prevent certain transactions from being verified, etc., destroying the decentralized nature of the blockchain network. Decentralized mining pools can prevent 51% of attacks and maintain the security of the Bitcoin blockchain.

SpiderPool is about to launch a tool for data transparency

To advance our strategic upgrade towards decentralized mining pools and gradually implement them, SpiderPool has completed the development of transparent mining data tools and officially launched them.

We are excited to announce the launch of “TrustView,” which will feature the disclosure of block and payment addresses. Miners can view the records and disclosures of each data and track all their information on the chain.

At the same time, the block details, balances, and other information about the block luck value and payment address are also disclosed. SpiderPool firmly believes that data transparency is the first step towards decentralized mining pools and the only way for our entire network to become truly decentralized.

In the future, SpiderPool will continue to research and develop the concept of a truly decentralized mining pool. We welcome all Bitcoin ecosystem developers, miners, and crypto geeks to join our discussion on decentralized mining pools to create a more decentralized and transparent Bitcoin mining ecosystem.

Whether you are a miner who wants to join a fair and transparent mining pool or a developer interested in contributing to our mission, we are happy to hear your opinions!

Feel free to contact us at contact@spiderpool.com or join our telegram group: https://t.me/spiderpool_en. Allow us to work together to promote a greater and wider application of Bitcoin worldwide and make Bitcoin mining decentralized again!