[Research] A clockless vardiff strands a slowing miner

In the recent publication titled "Vardiff belongs at the frontier," available here, a detailed explanation is provided on how the introduction of a proxy in mining operations impacts the variable difficulty (vardiff) management. The article explains that traditionally, a pool server calculates the total hash rate by summing up the outputs from each connection's control loop, which allows for direct monitoring of each miner's performance.

However, with the integration of a proxy, this dynamic changes significantly. The pool server now interacts with an aggregated entity rather than individual miners. This aggregation makes it difficult for the pool server to monitor the health and performance of each connected miner directly. As a result, the proxy must assume the role of managing fine-grained share rate adjustments to maintain efficiency and fairness in miner contributions.

Furthermore, the introduction of the proxy leads to a more complex management scenario where two distinct controllers are required: one for the pool and another for the proxy. These controllers must coordinate to manage the share rates effectively, as they operate on different levels of data aggregation and have varying capabilities in estimating and adjusting parameters. This setup essentially links the two controllers, creating a system where both must work in harmony to address the challenges introduced by the proxy, thereby complicating the overall state of vardiff management within mining pools.