Mining pools merged from Ethereum: the case of a solution based on Scrypt
As one of the main cryptocurrencies, Ethereum has continued to innovate and expand its capacities in recent years. An area where the network has grown is in its mining infrastructure, with more and more users adopting the latest technologies to optimize their mining efforts.
However, despite the rise of merged mining pools (MMP) in other cryptocurrencies such as the SHA-256, a question remains unanswered: why did Ethereum adopt a similar approach? In this article, we will immerse ourselves in the reasons for the lack of merged mining pools based on Scrypt on the Ethereum network.
Why the merged mining pools work
Before exploring the limits of Scrypt, let’s review briefly what made the success of mining pools (MMP) in other cryptocurrencies. The MMPs allow several minors to put their resources together and to share the rewards for resolving a block or to finish a transaction. This approach has several advantages:
- Increased efficiency : By dividing the workload between several minors, MMPs can reduce the computing power required to solve complex problems.
- Improvement of profitability : with more minors contributing to the network, the chances of finding an increase in the solution, which facilitates the game for new users and the potentially profit of mining activities.
The case of deputies based on Scrypt
Now that we have explored why the MMPs succeed in other cryptocurrencies, let’s examine the advantages of the use of merged mining pools based on Scrypt (MPP) on Ethereum:
- Time of faster solution : SCRYPT is a more intensive algorithm in calculation compared to the SHA-256, which can cause faster creation and resolution of blocks.
- Increased safety : The increase in the calculation power required to solve complex problems on SCRYPT can help improve the overall security of the network.
Why did Ethereum adopt MMPs
Despite the potential advantages of MPPs, there are several reasons why Ethereum has not adopted this approach:
- Limitations of scalability : While more and more users join and participate in mining activities, the scalability of the network becomes more and more difficult. The current consensus mechanism (proof of participation) may not be sufficient to manage the increase in the load.
- Energy consumption : SCRYPT is a high energy intensity algorithm which requires significant calculation power to solve complex problems. This can result in high electricity costs for minors and can have a negative impact on the overall sustainability of Ethereum mining infrastructure.
- Interoperability problems : The lack of interoperability between the different cryptocurrencies, including the merged mining pools, makes it difficult to activate transparent communication between minors on other networks.
Conclusion
Although there are valid reasons for which Ethereum has not adopted merged mining pools based on Scrypt, it is essential to note that the network is continuously evolving. As new technologies and innovations emerge, we can expect to see changes in the way Ethereum mining infrastructure is structured.
In the meantime, alternative solutions such as POS (proof of stake) and mining assisted by GPU can be worth explored for those who wish to participate in the Ethereum ecosystem. However, for the moment, the absence of MMP remains a notable gap in Ethereum infrastructure.
Recommendations
To approach this limitation, it is essential to consider the following:
- Explore alternative solutions : Look for and assess other cryptocurrencies that have managed to implement merged mining pools.
- Transition of Ethereum : Consider supporting the transition from Ethereum to the consensus of proof (POS), which can help improve scalability and reduce energy consumption.
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