Episode 96: Mining Decentralization Update

In this episode of Bitcoin Explained, the hosts discuss the increasing centralization of Bitcoin mining and potential solutions to counter this trend. They explore different layers of mining centralization, including hardware location, mining pool operation, and chip production. The hosts delve into projects like Stratum V2, DATUM, Bitaxe, and P2Pool, examining how these initiatives aim to decentralize mining pools and equipment. They also address the challenges and potential regulatory hurdles associated with these solutions, emphasizing the importance of censorship resistance and defense in depth. The conversation touches on the financial incentives driving mining centralization and the need for innovative approaches to distribute payouts and reduce the power of large pools.