[bitcoin-dev] Braidpool: Proposal for a decentralised mining pool

["pool2win" <kohli@ctemplar.com>]

We have been working on a peer to peer mining pool that overcomes the
problems faced by P2Pool and enables building a futures market for
hashrate.
 
The proposal can be found here:
https://github.com/pool2win/braidpool/raw/main/proposal/proposal.pdf
 
The key features of the pool are:
 
1. Lower variance for smaller miners, even when large miners join
  the pool.
2. Miners build their own blocks, just like in P2Pool.
3. Payouts require a constant size blockspace, independent of the
  number of miners in the pool.
4. Provide building blocks for enabling a futures market of hash
  rates.
 
Braidpool: Decentralised Mining Pool for Bitcoin
 
Abstract. Bitcoin P2Pool's usage has steadily declined over the years,
negatively impacting bitcoin's decentralisation. The variance in
earnings for miners increases with total hashrate participating in
P2Pool, and payouts require a linearly increasing block space with the
number of miners participating in the pool. We present a solution that
uses a DAG of shares replicated at all miners. The DAG is then used to
compute rewards for miners. Rewards are paid out using one-way payment
channels by an anonymous hub communicating with the miners using Tor's
hidden services. Using the payment channels construction, neither the
hub nor the miners can cheat.

Full proposal at
https://github.com/pool2win/braidpool/raw/main/proposal/proposal.pdf
 
Details on trading hashrate are here:
https://pool2win.github.io/braidpool/2021/08/18/deliver-hashrate-to-market-makers.html
 
@pool2win