Jack Dorsey, co-founder of Twitter and a prominent advocate for Bitcoin, has taken a bold step in the world of cryptocurrency by leading a $6.2 million seed round for Mummolin, the parent company of a new decentralized Bitcoin mining pool called Ocean. This move is aimed at helping miners regain control of block rewards and transaction fees, thereby enhancing transparency and decentralization in the Bitcoin mining process.
Ocean: A new approach to Bitcoin mining
Ocean represents a groundbreaking approach to Bitcoin mining. It seeks to revolutionize the industry by providing miners with more transparency and control over their earnings. Unlike traditional Bitcoin mining pools, where miners receive block rewards through the pool operator, Ocean enables miners to receive block rewards directly from the Bitcoin network itself.
Ian Northon, co-founder and chief legal officer at Mummolin, explained that the funds raised through this seed round will be used for general corporate purposes. He also highlighted the support of notable figures within the Bitcoin community, stating, “Our cap table is private, but we are proud to have several OG Bitcoiners and other Bitcoin thought leaders back the project.”
One of the key innovations introduced by Ocean is its payout system known as TIDES, which stands for Transparent Index of Distinct Extended Shares. According to Northon, TIDES is designed to be an improvement on existing payout systems like PPLNS and FPPS, especially when it comes to miners’ transaction fee revenue.
Changing the role of mining pools
Luke Dashjr, Mummolin co-founder and a long-time Bitcoin Core developer, emphasized the need for a fundamental shift in the role of mining pools for Bitcoin to remain truly decentralized. Dashjr described Ocean as “a new type of pool that enables miners to be truly miners again,” highlighting its transparency and noncustodial nature.
Mark Artymko, co-founder and president of Mummolin, raised concerns about traditional BTC mining pools holding exclusive custody of block rewards and transaction fees. He stated, “This gives them the ability to withhold payment from individual miners, whether by their own choice or by legal requirement.” Ocean’s non-custodial payouts directly from the block reward aim to eliminate this risk and reduce the undue influence of mining pools over miners.
Jack Dorsey’s confidence in Ocean
Jack Dorsey, a committed supporter of Ocean, expressed his confidence in the platform’s ability to combat the centralization of pools and mining operations in the Bitcoin network. He emphasized the importance of projects that benefit Bitcoin as a whole, saying, “When I see a project that is good for Bitcoin broadly, and that’s also good for me and my companies personally, it becomes a simple decision for me, and I’m happy to be a part of it.”
The announcement of Ocean’s launch was made at the Future of Bitcoin Mining Conference, which took place near Barefoot Mining’s 150-year-old hydroelectric dam in rural South Carolina. Barefoot Mining, the first client of Ocean, has repurposed the dam to harness excess energy for Bitcoin mining on a large scale.
The timing of Ocean’s launch is notable, coming 139 days before Bitcoin’s fourth halving event, expected to occur on April 17, 2024. This event will reduce the current 6.25 BTC mining reward per block to 3.125 BTC, making it essential for miners to optimize their operations and seek innovative solutions like Ocean to maintain profitability.
