Jack Dorsey, widely recognized as the co-founder of Twitter (now X) and a vocal proponent of Bitcoin, is diving into a new venture aimed at transforming the world of Bitcoin mining.
He has recently spearheaded a $6.2 million seed funding round for Mummolin, the parent company of Ocean – a pioneering Bitcoin mining pool. This move is more than just a financial endorsement; it’s a strategic initiative to reshape the Bitcoin mining landscape.
Ocean: A New Wave in Bitcoin Mining
The primary goal of Ocean, the new brainchild of Mummolin, is to decentralize the Bitcoin mining process. It endeavors to bring unparalleled transparency to mining operations and to empower miners by enabling them to receive block rewards directly from Bitcoin.
This approach is a significant shift from the current model where miners typically rely on BTC mining pools for their rewards. Ian Northon, co-founder and chief legal officer at Mummolin, highlighted that the seed funding will cater to general corporate needs, boasting support from several notable Bitcoin enthusiasts and thought leaders.
He introduced TIDES, an acronym for Transparent Index of Distinct Extended Shares, as a system that surpasses traditional payout methods like PPLNS and FPPS, particularly in the context of miners’ transaction fee revenue.
Luke Dashjr, another co-founder of Mummolin and a seasoned Bitcoin Core developer, shared his vision of transforming the role of mining pools.
According to Dashjr, Ocean is not just another mining pool; it’s a paradigm shift that restores the true essence of miners in the Bitcoin network. The noncustodial nature of Ocean allows miners to directly receive new block rewards from Bitcoin, marking a departure from traditional custodial pools.
Revolutionizing Mining Ahead of Bitcoin’s Halving
The launch of Ocean represents a critical juncture in the future of Bitcoin mining, particularly as the industry anticipates Bitcoin’s fourth halving event slated for April 17, 2024.
This event will halve the current mining reward from 6.25 BTC to 3.125 BTC per block, posing a substantial challenge to the profitability and sustainability of Bitcoin mining.
Dorsey’s support for Ocean is not just a business move; it’s a commitment to solving the potential problems of centralized pools and mining operations that could threaten the decentralization of Bitcoin.
His involvement signifies a convergence of personal and broader Bitcoin interests, showcasing his dedication to nurturing and advancing the Bitcoin ecosystem.
The inaugural announcement of Ocean was fittingly made at the Future of Bitcoin Mining Conference, held in the vicinity of Barefoot Mining’s 150-year-old hydroelectric dam in rural South Carolina.
Barefoot Mining, Ocean’s first client, exemplifies the innovative spirit of this venture, having repurposed the dam to convert excess energy into Bitcoin mining on a significant scale.
In essence, the creation of Ocean under the leadership of Dorsey and the Mummolin team is a game-changer for Bitcoin mining. It represents a bold step towards decentralization, transparency, and efficiency in a domain that is crucial to the health and growth of the Bitcoin network.
As the industry prepares for the upcoming halving event, Ocean’s noncustodial, miner-focused model stands out as a beacon of innovation, poised to redefine the standards and practices of Bitcoin mining. Dorsey’s involvement in this venture reaffirms his commitment to Bitcoin and his vision to revolutionize its foundational processes.
