178 sats \ 2 replies \ @028559d218 14 Oct \ on: 100 Million Bitaxes or $10 Billion For Open Source ASIC Chips bitcoin_Mining
Without going into the weeds... there is a big difference between FPPS and the Ocean-Mining 'model' (PPLMS I believe). FPPS isn't really mining... it's hashing. Where the hasher big or small is guaranteed a payout regardless of whether a block is won or not.
If a block is never won... the hasher still gets paid. How? The 'mining pool' needs a ton of captial in reserve to pay out regardless of good or bad luck. Which means that a large cut of the mining revenue is kept from the hashers in the pool - to have as 'reserve capital'. Take a BIG cut of block rewards, keep it in reserve to pay out to hashers in the pool regardless of luck, consistently every week.
Payouts DON'T actually come from the block reward... they come from capital held in reserve by the centralized/large mining pool because payouts are 'predictable'. Big hashers can 'pay the bills' (electricity) this way... HOWEVER they get less payout because the consistency of payout means their overall payouts are LESS.
HOWEVER as payouts come increasingly from FEES, NOT the BLOCK SUBSIDY, payouts are REALLY volatile. Which undermines the centralized/FPPS mining model. How can a mining pool know FEES AHEAD of TIME to plan payouts? They CAN'T!
So Ocean pays out strictly from the block reward, NO gimmicks, no "capital in reserve", no BIG CUT for the POOL MANAGERS which means that in a high fee and volatile fee environment Ocean PAYS OUT MORE.
As payouts come increasingly from Fees and are therefore more volatile, payouts directly from blocks (like at Ocean) PAY MORE than consistent payouts that have nothing to do with fee volatility.
This helps decentralize mining, diversify the block transaction template, and reward 'mining' not just 'hashing' for monetary payouts regardless of luck.
Bitcoin Mechanic from Youtube and Twitter has a lot to say on this and is very articulate. He is also director of communications at Ocean and is very outspoken.
In my opinion, putting on my tinfoil hat, the Chinese government recognizes WHAT Bitcoin is and how it has an outsize influence on Cyberspace. Allowing miners to dominate mining in China is probably part of the Chinese government's cyber-security strategy, in addition to all the other cyber-espionage the CCP is doing on American companies and businesses.
Longer term, the US government will probably will want to do the same... dominate Bitcoin Mining too. But they're too dumb to figure it what Bitcoin is especially the recent crowd who can barely figure out how to make Oatmeal. There is literally noone 'in command' right now in my opinion... but that's another topic.
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China is really dysfunctional with a tremendous amount of corruption and insider dealings. I think that's why some of it 'came back.'
If it were really 'banned' then it would have been shut down immediately - the CCP is a complete, total surveillance state.
I still stand by that the Chinese government views mining as part of a diverse cyber-security strategy... if Chinese miners can control the next blocks and therefore transactions, then they have 'an edge' over the United States and American companies. Even if they don't think this has a lot of utility now... it may in the coming years and decades. The Chinese think 50-100 years ahead, not 4-8 year election cycles like Americans.
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