I want to understand if P2Pool will benefit miners?


#1

Someone on the Discord asked,

Guys I want to understand if P2Pool will benefit miners? Whats the difference with mainstream pools?

According to the bitcoin wiki:

P2Pool is a decentralized Bitcoin mining pool that works by creating a peer-to-peer network of miner nodes.

Decentralized payout pooling solves the problem of centralized mining pools degrading the decentralization of Bitcoin and avoids the risk of hard to detect theft by pool operators.

From their FAQ:

What are the advantages of using P2Pool?

  • Small statistical advantages increasing income
  • Control over your own pool node
  • No need to trust a pool operator
  • Immediate payments
  • Helps to protect and keep the network decentralized

What are the disadvantages of using P2Pool?

  • Initial setup is a little more complicated
  • More CPU / RAM / Internet bandwidth required
  • Higher payout variance
  • Small transaction fees when spending if you receive many small payouts

So, my answer your question:

Since P2Pool allows you to choose whether you donate 1% to the pool, you might benefit there, but as a miner, you might also benefit from not worrying about the trustworthiness of your pool operator.

If you mine in order to hold BTG, or are strictly an investor, you benefit from knowing that hashpower is staying decentralized, which limits the ability of a large pool operator to influence the system - this strengthens the cryptocurrency.