Mining Bitcoin: The Future of Decentralized Computing Power

• Bitcoin mining is becoming increasingly centralized, with two pools accounting for over 50% of the global hash rate.
• Mining pools emerged as a way to combine smaller miners’ resources to increase their chances of winning the proof-of-work competition and receiving rewards more frequently.
• Solutions such as ASICBoost, if implemented correctly, could help decentralize mining and make it more accessible to all.

The Problem of Centralizing Mining

Bitcoin mining is increasingly becoming centralized with two pools coordinating 34% and 18.2% respectively of the global hash rate. This means that they have a disproportionate share of control over what happens in the network, leading experts like Peter Todd to warn that this could lead to censorship or regulation in Bitcoin’s future.

What are Mining Pools?

Mining pools are server run by companies which unite miners located in different areas, pooling their computing resources together into one team which can then compete in the proof-of-work competition more frequently than an individual miner would be able to do alone. Originally created as a way for smaller miners to get rewarded more frequently from their efforts, today these pools are responsible for a majority of Bitcoin’s global hash rate – indicating just how much power they have over mining operations.

ASICBoost: A Possible Solution

One possible solution which has been suggested by many experts is ASICBoost — a specialized hardware acceleration technique which allows miners to use less electricity when performing proof-of-work calculations. If correctly implemented, this could help decentralize mining and make it accessible to all – regardless of whether or not they have access to expensive equipment or large amounts of capital investment needed for modern day bitcoin mining farms.

What Does the Future Hold?

Today we are still at the genesis chapter with regards to Bitcoin and its potential uses, so predicting what will happen is impossible right now – but what we do know is that centralization needs to be addressed properly if we want a secure future for cryptocurrency networks such as Bitcoin. Solutions such as ASICBoost could help achieve this goal but only time will tell if they will become widely adopted or not within the industry.


Mining centralization poses several risks for both present day bitcoin users and those who might join us down the line; however solutions such as ASICBoost offer an interesting way forward towards a decentralized future where everyone can benefit from participating in cryptocurrency networks without needing access to expensive equipment or large amounts of capital investment needed for modern day bitcoin mining farms..