Mining pools collapsed the key value proposition of Bitcoin, namely, its decentralization. In turn, there has been considerable criticism and backlash. Many people in the community, including us, have called for technical measures to elemate large mining pools.
In this post, we present a specific technical fix, called Two-Phase-Proof-of-Work (2PoW), to elemate large mining pools.
In the Bitcoin network, as the computing power of the mining pool continues to increase, individual nodes can no longer independently participate in mining. Individual miners can only participate in mining by joining the mining pool, which completely deviates from "one-CPU-one-vote" vision. In essence, a mining pool is only equivalent to a node, monopoly mining is very terrible. In addition to unfair incentive, monopoly mining is possible for mining pools with greater computing power to be actively or passively carryed out attacks on the network, resulting in the collapse of the entire system.
We believe that in the Bitcoin network, the formation of the mining pool is inevitable, because in the proof-of-work mechanism, the miner can outsource part of his work to other miners. The cooperative mining between miners is obviously superior to non-cooperative mining. The traditional view is that the formation of the mining pool is due to the ASIC. We believe that this is not the key reason. Many existing projects eventually formed the mining pool after adopting the anti-ASIC strategy. The strategy only limits the growth speed of the computing power of a single node, but the advantages of cooperative mining are still obvious.
In the traditional proof-of-work mechanism, we believe that cooperative mining is inevitable. This is because there are no puzzles can’t be outsourced.
We propose a two-phase-proof-of-work mechanism to solve the problem of cooperative mining. We introduce a concept of "luck" in each round of mining, that is, miners rely on luck to mine. We split each round of mining tasks into two phases of proof of work, the first phase is a lightweight task to complete the calculation of the luck , and then calculate the difficulty of the second phase of the mining task according to the luck, The higher the luck, the smaller the difficulty, the smaller the luck, the greater the difficulty. The second phase is to complete the corresponding work according to the corresponding difficulty. We can prove that under this two-phase-proof-of-work mechanism, the expected output of miners' cooperative mining is lower than that of their non-cooperative mining. This is the key to achieving "one-CPU-one-vote". Whether each node belongs to the same miner, it will choose to mine independently.
For more details about 2POW, refer to https://bitcointalksearch.org/topic/ann2pow-luck-a-new-consensus-algorithm-to-eliminate-large-mining-pools-5254068
Welcome to the Luck:
https://lucknet.club
Whitepaper: https://lucknet.club/doc/luck.pdf
Some other media links:
Discord: https://discord.gg/TN6XhcD
Telegram: https://t.me/luck_cryptocurrency
