- Jack Dorsey has invested in Ocean, a new decentralized Bitcoin mining platform that enables miners to receive block rewards directly from the network rather than through custodial mining pools.
- Ocean aims to decentralize mining by allowing for more transparency and giving miners direct access to block rewards and fees.
- The $62 million investment will support Ocean’s launch and aligns with Dorsey’s interest in improving Bitcoin mining by reducing dependence on centralized mining pools.
Jack Dorsey, the co-founder of Twitter and a leading Bitcoin advocate, is backing a new decentralized Bitcoin mining pool called Ocean to help miners regain control of block rewards and transaction fees.
Ocean aims to reshape and decentralize the Bitcoin mining process by enabling more transparency and allowing miners to receive block rewards directly from the Bitcoin network rather than going through custodial mining pools.
The new platform, developed by Mummolin, wants to solve the problem of mining pool centralization, which could undermine Bitcoin’s decentralized nature.
Key Details of the Investment
The investment spearheaded by Jack Dorsey in the new Bitcoin mining pool, Ocean, is marked by several pivotal details. Dorsey has played a crucial role, leading a substantial seed funding round amounting to $62 million for Mummolin, the parent company of Ocean. This significant financial infusion is earmarked primarily for general corporate purposes, essentially underpinning the launch and operationalization of Ocean.
Emphasizing the alignment of this project with his personal interests, Dorsey has articulated his commitment to enhancing the process of Bitcoin mining.
A notable feature of Ocean is its innovative payout system, TIDES (Transparent Index of Distinct Extended Shares), which is engineered to be a step ahead of the current mining pool reward systems.
Adding to the significance of this venture, the launch of the Ocean platform is strategically timed to coincide with the upcoming Bitcoin halving in 2024.
Ocean’s Differentiator: Non-Custodial Mining
Ocean enables “non-custodial” mining, meaning miners receive block rewards directly from the Bitcoin protocol rather than having rewards flow through a custodial mining pool first.
This removes the mining pool’s power over reward distribution and better aligns with Bitcoin’s ethos of decentralization. Dorsey and others believe this will be a key upgrade for Bitcoin mining.