- Tether allocates mining hashrate to OCEAN pool to combat Bitcoin mining centralization and support decentralization.
- Tether expands mining operations using OCEAN’s DATUM protocol across Africa, boosting decentralization in underdeveloped areas.
- OCEAN’s miner-controlled block creation aligns with Bitcoin’s ethos; Tether’s support strengthens its decentralizing impact.
Tether, the largest stablecoin market, stated that it will allocate its current and future Bitcoin mining hashrate to OCEAN, a mining pool created by Luke Dashjr, one of the contributors to Bitcoin Core. This partnership is a strategic decision to ensure that decentralization in the Bitcoin network grows and becomes more fortified against centralizing influences.
The OCEAN system is based on the DATUM protocol, an open-source software that enables the miners to create the blocks from the node. Thus, using OCEAN’s protocol, Tether aims to reduce the impact of large mining pools on BTC hashrate, which is currently dominated by several large pools. This plan aligns with Tether’s general approach of working on Bitcoin’s core layers to maintain the ecosystem that empowers people and is resistant to censorship.
Implementation of DATUM Gateway Across Global Operations
Tether will activate the use of OCEAN’s DATUM Gateway software in its mining sites across its global operations. It also supports high-velocity mining in areas experiencing low connection speeds, which is convenient for sites in rural or remote areas. The software’s architecture is designed to make it possible to connect thousands of mining rigs and perform operations with the Bitcoin network without employing middlemen.
This deployment will cover Tether’s mining sites in various parts of the continent emphasizing areas with poor infrastructure. It comprises operations in some regions of Africa, where Tether has recently expanded its presence through infrastructure building and education. This is likely to improve geographical diversification and reduce risk in the distribution of Bitcoin mining.
Anticipation of the hashrate deployment to OCEAN ties with Tether’s operations in Africa. In the past years, the company partnered with Quidax to develop campaign initiatives to educate people on digital asset usage and adoption. An infrastructure overlay with educational pilots aims to expand the degree of non-adoption of the use of the Bitcoin protocol in areas with little to no exposure to digital financial services.
The mining expansion also continues to use renewable sources of power like El Salvador, Uruguay, and Paraguay. As a result, with OCEAN’s incorporation in these energy-focused projects, Tether intends to align sustainable energy with decentralized mining. It can help develop socially responsible mining practices and ensure effective operation in remote areas.
OCEAN’s Role in Challenging Mining Pool Centralization
OCEAN was created to tackle emerging problems, such as centralization entrenched in Bitcoin mining. Currently, the biggest pools still control block construction and processes of their transactions. Its non-custodial structure enables miners to keep control over block content, which is appropriate in the current context as it is more relevant to the Bitcoin vision.
Tether’s involvement further supplements OCEAN’s capability to shift tendencies in the mining industry. Indeed, Tether adds substantial hashrate to the pool, which might encourage mid and small-miners looking for more decentralized mining. This increased participation may assist in decentralizing mining power and less commanding reliance on the biggest pool systems. Furthermore, Tether’s increasing activity in issuing both stablecoins and mining services may raise concerns of its centrality in the Bitcoin ecosystem.
