One problem that concerns many is the centralization of mining within the Bitcoin ecosystem. Fortunately, there are talented developers working to solve this problem and Matt Corallo, full-time Bitcoin developer at Chaincode Labs, is one of them. His BetterHash Mining Protocol is intended to significantly decrease the problems associated with mining pool centralization.
What Are Mining Pools?
First, it is important to understand there are different types of miners on the network. For the purpose of this article, we’ll refer to a “solo miner” as someone who mines alone, a “hasher” is someone who mines in a mining pool, and a “pool operator” controls the mining pool.