Scaling Noncustodial Mining Payouts with CTV

Exploring the concept of non-custodial payouts within the context of cryptocurrency mining pools reveals a nuanced challenge tied to the pool's control over transaction templates. The core issue revolves around the balance between pool authority and miner autonomy, especially in how transaction templates are managed. The suggestion posited involves the pool relinquishing its ability to mandate specific transactions within the template, thereby granting miners the flexibility to fill the template as they see fit.

This approach hinges on the utilization of CheckTemplateVerify (CTV) in the coinbase transaction, which is recognized for its fixed-size nature. By leveraging CTV, miners would gain the capability to non-interactively assess sigops and allocate block space efficiently. This strategy not only promises to address the constraints imposed by the pool's control over transaction templates but also aligns with the broader goal of facilitating non-custodial payouts. Such a shift towards empowering miners with greater control could significantly impact the dynamics of mining operations, emphasizing the importance of technical specifications and the underlying architecture in achieving decentralized payout mechanisms.