Braidpool is a peer to peer bitcoin mining pool that aims to:
- Lower variance for independent miners, even when large miners join the pool.
- Miners build their own blocks, just like in p2pool.
- Payouts require a constant size blockspace, independent of the number of miners on the pool.
- Provide building blocks for enabling a futures market of hash rates.
In this post we describe a futures contracts between miners and market makers that is enforced by the bitcoin blockchain. Miner and market agree on a Exahash to BTC price on a fixed date (expiry date). On the expiry date, the miner and the market maker execute an atomic trade to exchange the hashrate (and any payouts earned) for BTC.
This post provides a technical summary of how Braidpool works. There are three main components to braidpool 1) a DAG of shares to track work done by miners and calculate rewards, 2) one-way payment channels for payments with fixed blockspace requirements and 3) Single Use Seals to trade miner shares on an open market. The detailed proposal can be found here.
Providing futures contracts for hashrate has proven to be a challenge in the current mining ecosystem. Hashrate tokens by Blockstream, poolin and binance are some of the early attempts to provide financial contracts for miners. The problem with these contracts is that they are opaque and can only be traded OTC - often times only useful for the pool participants. In this post we provide an alternative to such closed systems. We utilise the shares broadcast on braidpool’s P2P network to enable miners to prove they generated those shares. We describe how single use seals can be used to trade these shares in an open market.
Just like P2Pool, Braidpool uses peer to peer communication between miners to track PoW shares. The question then is, can we extend P2Pool to achieve the goals of Braidpool? In this post we present how Braidpool is different from P2Pool and why Braidpool is not building on the P2Pool codebase.
Current mining pools can be forced into censoring transactions and their opaque accounting limits their use for building financial tools that can help miners manage their business risks. This post briefly discusses the limitations of centralised mining pools and provides motivation to build Braidpool.