Mummolin Inc., under the guidance of Block CEO Jack Dorsey, has successfully raised $6.2 million in seed funding to propel the launch of OCEAN decentralized mining pool.
Ocean is a groundbreaking decentralized Bitcoin mining pool. Joining Dorsey in this venture are notable participants like Accomplice, Barefoot Bitcoin Fund, MoonKite, NewLayer Capital, and the Bitcoin Opportunity Fund, as indicated in an official announcement.
Traditional bitcoin mining pools wield considerable control over block rewards and transaction fees. As a result, they redistribute the rewards among the miners at their discretion. In contrast, OCEAN mining pool adopts a non-custodial payout system.
This new pool directly disburses earnings to miners from the block reward. This innovative approach mitigates the risks associated with traditional pools, safeguarding miners from undue influence.
This approach is unlike traditional mining pools where miners have to rely on the pool to get their payments.
Making Bitcoin a Genuinely Decentralized Currency
The $6.2 million seed funding is earmarked for OCEAN’s introduction, initiating a series of projects aimed at decentralizing bitcoin mining. Luke Dashjr, a veteran Bitcoin Core developer and Mummolin co-founder, emphasizes the need for a paradigm shift in mining pools. He emphasized on establishing BTC as a genuinely decentralized currency. Dorsey echoes this sentiment by noting:
“OCEAN is solving a problem for Bitcoiners that I think all of us feel—further centralization of pools and mining pools that could plague Bitcoin, and how that risks a bunch of Bitcoin attributes that we hold dear.”
Dorsey stated that projects like OCEAN are good for Bitcoin broadly and align with personal and corporate interests.
Currently, AntPool and Foundry USA control over 55% of the total Bitcoin hashrate. Acknowledging the dominance of centralized mining operations, OCEAN aims to bring much-needed diversity to the ecosystem.
Mummolin announced the official launch of OCEAN at the Future of Bitcoin Mining Conference on November 28. They made the announcement in the shadows of Barefoot Mining’s 150-year-old hydro-electric dam in rural South Carolina.
What OCEAN Decentralized Mining Pool Plans to Do
According to the announcement, this is a type of pool that enables miners to go with a non-custodial, permissionless system. This transparent pool empowers miners with autonomy and transparency.
OCEAN’s Global Head of Sales, pseudonymous Bitcoin Mechanic, stated:
“The intention is to disintermediate to the greatest extent possible. Pools have become trusted third parties whose permission we have required for activating soft forks and deciding what gets into the blockchain, in addition to taking custody of all newly generated coins. By offering transparency and a mechanism for miners to be paid directly by Bitcoin itself, we make the network radically more robust.”
OCEAN is the successor of the Eligius Bitcoin mining pool, known for its zero-fee model from 2010–2017. Dashjr stated:
“The old code has already been updated and tested with support for the latest Bitcoin addresses and mining machines.”
With the backing of Jack Dorsey and a consortium of strategic investors, OCEAN’s mission to reshape the future of Bitcoin mining gains momentum. The project expects to launch additional phases of bitcoin mining decentralization improvements in 2024.
