[Crypto Q&A] How will Ethereum combat centralisation of mining pools?

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But even with those benefits, miners are overwhelmingly choosing centralized pools. (P2Pool is the best-known decentralized option, but it’s still not exactly a popular alternative). Even with roughly 1,008 blocks mined per week, Luu pointed out that the last block P2Pool mined was a few weeks ago. Though other decentralized mining alternatives exist, Luu argues that it’s not viable for many miners to organize in a single mining pool using P2Pool’s model. The more miners that join up, the greater the “variance” – the length of time it takes to get a reward. “Reducing variance is, you know, the goal of joining the pool in the first place. That’s why P2Pool is not scalable and it’s very inefficient,” Luu said. His hope is that SmartPool will make all the difference. And, at least, it offers another decentralized mining option on bitcoin, ethereum, and other cryptocurrencies. He further contends that there aren’t many disadvantages to SmartPool’s model. Miners need to run their own full nodes on any blockchain, however, which they don’t need to do in centralized pools.

He further contends that there aren’t many disadvantages to SmartPool’s model. Miners need to run their own full nodes on any blockchain, however, which they don’t need to do in centralized pools.

by reducing losses due to orphaned blocks, which independent miners are more likely to experience. This portion of the Ethereum mining algorithm, a technique referred to as GHOST, includes the headers only of recently orphaned blocks in return for a reduced reward to both the block producer and the includer of the (otherwise orphaned) block. These included orphans from “grandparent” or earlier blocks are frequently referred to as “uncle” blocks because the gender neutral term “ommer” isn’t widely known or understood.

way that the Ethereum PoW consensus algorithm combats mining centralisation is by its use of a Proof of Work function that is ASIC resistant. By preventing mining from becoming dominated by specially designed and produced hardware, independent miners are kept competitive or even given an advantage in terms of their profits and/or levels of hardware investment, because they can make use of readily available commodity hardware (i.e. consumer graphics cards).

This portion of the Ethereum mining algorithm, a technique referred to as GHOST, includes the headers only of recently orphaned blocks in return for a reduced reward to both the block producer and the includer of the (otherwise orphaned) block.

what is centralisation?

miner will get rewards

impact price

With mining fee