I am Jimmy Song. Ask me anything.

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Alexandre Leite's photo

Hi, Jimmy! Love to attend your talk in Blockchain Academy/SP.

What do you think about PoW change proposal? Do you see risk in the current mining hashrate centralization?

Thanks!

Jimmy Song's photo

Bitcoin Developer, Educator and Entrepreneur

I don't see PoW change as necessary or desirable. The hash rate is in pools, which have lots of individual miners. The problem is that two things are currently conflated: mining reward variance reduction and block construction. The main danger is in pools controlling the latter. The former is absolutely desirable.

I think Matt Corallo's BetterHash would be a great way to separate the two concerns and decrease the main risk.

The assumptions under which people get scared about PoW 51% attacks is an economic actor which somehow gets some irretrievable good or service that costs a lot of money (many hundreds of bitcoins) through double spending. This is really hard to pull off in practice and pretty hard to get away with, so I don't really worry about it. The economic incentives generally align pretty well.