delvingbitcoin
Ecash TIDES using Cashu and Stratum v2
Posted on: June 4, 2024 13:47 UTC
Braidpool introduces an innovative concept in the cryptocurrency mining space by offering tradable shares as a key feature.
This decision stems from the platform's limitation on conducting payouts solely for the top N miners, typically around ten, who are owed the most in any given block. To accommodate those with lower hash power, Braidpool facilitates the sale of shares to larger miners through Lightning or eCash, presenting a unique solution to ensure all participants can benefit regardless of their mining capacity.
The payout system chosen by Braidpool operates on a difficulty adjustment epoch basis, spanning 2016 blocks. This interval was selected because it maintains a constant hash price throughout its duration, making tradable shares an effective forward contract. Although there exists an alternative method, such as PPLNS, which allows for payment in every block, Braidpool prioritizes efficiency and economic use of block space over frequent payments. The latter approach could lead to a significant increase in the number of transactions, thereby wasting block space. Tradable shares, envisioned as a Version 2 feature, demonstrate Braidpool's commitment to innovation and responsiveness to the needs and criticisms of its user base.
Furthermore, Braidpool acknowledges the possibility and potential benefits of exploring different payout mechanisms. The open nature of the platform suggests that forks could introduce alternative methods if the original proposal does not fully meet miner expectations. The discussion also touches upon the broader implications of introducing various types of forward/futures contracts within the market, such as those offered by Braidpool, eCash, Luxor futures, and others. The differentiation between futures and forward contracts is highlighted, emphasizing the standardization of futures to enhance tradability and liquidity in the market.
Braidpool aims to position itself as a more attractive option than existing mining pools by leveraging the advantages of forward/futures contracts as risk management tools for commodity producers. By doing so, the platform seeks to increase profitability and desirability among miners. It also encourages the development and integration of new ideas, including the potential for centralized pools to offer unique payout mechanisms atop the Braidpool framework, broadening the spectrum of options available to participants in the cryptocurrency mining ecosystem.