BETTERHASH:NEW MINING PROTOCOL
The BetterHash is a new mining protocol that developed to decentralize the bitcoin mining economy by introducing features that will improve the mining experiences. The rationale is that the current protocol used for bitcoin transactions, Stratum is based on miners pointing their hashpowers towards mining pools (Bitcoin Exchange Guide News Team). As such, pool operators have gained the advantage of influencing network upgrades and mining approaches considering that they maintain control of the largest portion of the total hashrate of the cryptocurrency. The role of BetterHash is to improve the mining experience by allowing individuals users to use their own block templates other than those used by the mining pool
Influence of BetterHash in the Cryptocurrencies
Principally, the advantage of BetterHash involves being able to offer a solution for the mining pools issue that has affected the bitcoing mining economy. According to Bitcoin Exchange Guide News Team, Bitcoin mining pools that are bound to influence the company most based in China already accounts for a vast portion of the hash rate and therefore influences the payout rate for most miners using the pools.
Importance of BetterHash
The advantage of BetterHash involved its new feature that involves two protocols, one controlling the block construction and the other controlling payouts. Therefore, miners will be able to choose which transactions to include in blocks. Eventually, clients who are willing to choose their transactions may not be considered as ‘independent miners’.
Why should BetterHash be adopted?
Conclusively, the role of BetterHash is to improve the mining experience by allowing individuals users to use their own block templates other than those used by the mining pool. Initially, the Stratum protocol bore the challenge of pool mining with mining pools gaining control of network upgrades and the types of transactions they include on their block templates. The current feature allows all the users to develop block templates so that mining pools may not decide what mining transactions to include to their templates.
Finally, the situation is the same for the miners making it easier to leverage the timely payouts from the mining pools while also engaging in independent mining transactions. Essentially, the proportions from the mining pool will still be consistent and miners will make normal gains as the mining pool owners.
References
Bitcoin Exchange Guide News Team “BetterHash: Bitcoin Core Developer Protocol to Decentralize BTC Mining.” Bitcoin Exchange Guide. 2018, June 13th https://bitcoinexchangeguide.com/betterhash-bitcoin-core-developer-protocol-to-decentralize-btc-mining/ Accessed on 31st July 2018.