Monero contributor with Reddit username, ASIC Bricker has highlighted the solution to the network centralization. According to the Reddit post seen by Cryptoinfowatch, Sec1 stated that centralization poses real problems to the health of the Monero network. They stated that the mining pool on the network controls 40% of the total hashrate on the Monero network. However, a recent network project is poised to solve the centralization issues that Monero is facing.
This takes cognizance of the fact that the network has faced some oppositions that has resulted in de-listing due to KYC issues. This coupled with the fact that the prospect of dominance and 51% attack became real due to centralization. The possibility that a mining pool could go rouge or shut down is another consideration since pool admins have been known to go rouge as seen from the MoneroOcean incident.
P2Pool, the proposed solution is a hybrid of a pool and solo mining. This is despite the fact that it combines the advantages of both. The node owner gets paid on a regular basis but their has power cannot be commandeered for a 51% attack.
Implementation of P2Pool
P2Pool features full decentralization as a blockchain protocol. There are no central servers that could be shut down or blocked. It effectively merge mines XMR using separate blockchains.
It eliminated the centralizing role of a pool admin, and so eliminates the possibility of one going rouge. Furthermore, this opens the pool to anyone that wants to mine since selection is no longer subject to the decision of a pool administrator. This permissionless feature ensures that the power to decide entry to the mining pool doesn’t rest on one entity.
Payout to miners is immediate. This eliminates the need for a pool wallet, thereby reinforcing the trustlessness.The P2Pool protocol employs PPLNS as its payout system. This is a feeless structure by design.
The miner reward system is so efficient that payouts as low as 0.0005 XMR can be made.
The update stated that:
Each individual miner payout takes only 38 bytes on the Monero blockchain!
Load Effect On The Network
This C++ script for the p2pool was drafted from scratch. It is run with the same efficient libuv library as xmrig-proxy. This makes it possible to handle multiple concurrent miner connections.
Fast block time is made possible through uncle blocks as applicable with the Ethereum network. ASIC Bricker added that:
I tested it locally with several nodes mining 10 blocks per second and didn’t get any orphans! Block times as low as 1 second are possible on the Internet.
Monero p2pool is past the early development stages and will be ready for testing next week. The project will initially run on a testnet before porting to the Monero mainnet.
The project will be advantageous to users as they can enjoy the benefits of solo and pool mining combined. Users still get to control their Monero nodes, access what it mines, get regular payouts, and secure their miner rigs to protect them from 51% attacks.
Monero P2P mining pool ready for testing next week #monero #xmr #p2pool https://t.co/c7ATbJoJi2
— Justin Ehrenhofer 🏳️🌈 (@JEhrenhofer) August 22, 2021
Using separate blockchain to mine Monero and no central servers makes the protocol ideal as a decentralization mechanism.
Pool blocks credit miners instantly, and the absence of a pooled wallet means there is no custodian of funds.
The developer stated that they embarked on the P2P test to provide a change and end all the worries associated with mining pool centralization.
Also, protecting the network from the possibility of another 51% attack and holding up to the most centralized part of Monero’s ecosystem, mining, are all factors contributing to the project’s development.
The project is open to interested miners who want to be part of the experience. Users with little or no experience in pool mining are also welcome, as pre-test instructions will be provided to all miners.