Cryptocurrency currently dominates the global market fund transactions. With the risks involved in hacking and the need to secure money transfers, Bitcoin is becoming more and more important every day. The increase in Bitcoin mining has led to the great interest of many in joining the platform as miners. There is a lot of software like BetterHash and NiceHash available for Bitcoin miners, and choosing the right software depends on your preferences.
Bitcoin mining has faced some challenges in the past, such as miners losing money and systems attacked by malware. These challenges have become more important due to the centralized mining protocol. Among these challenges, there was an urgent need to create a protocol that could protect Bitcoin miners and give them independence and control over their mining activities. This is how BetterHash came into being. Since its inception, the software has undergone many changes to make it more user-friendly and secure.
What is BetterHash?
BetterHash is alternatively a mining software, a mining protocol that assists Bitcoin miners in their mining activities. Corallo developed the BetterHash protocol to help miners overcome the challenges of centralization in the mining environment. The essence of BetterHash’s decentralization is to enable miners to have control over their mining activities and transactions, as these activities are included in the mining blocks.
BetterHash also aims to eliminate the position previously held by pool operators who were seen as a potential threat and a source of attacks. Corallo using the BetterHash protocol aims to generate Bitcoin hash power generated from a specific mining pool.
Challenges of centralizing Bitcoin mining
Centralization has presented challenges unique to Bitcoin mining; that’s why Corallo proposed BetterHash to move the data mining protocol from centralized to decentralized. The main goal of decentralization was to make Bitcoin mining a process with no control or allegiance to anyone or a system – an ultimate tool for the independence of Bitcoin miners.
One of the risks associated with centralized mining is transaction censorship. This problem becomes more complex as multi-layered networks such as side chains are used in the extraction process. These layers – two networks presented a significant system technical challenge affecting the entire system. With centralization, malware or a technical bug could become a potential bug for other systems. Such risks could cause everyone to lose essential software, documents, or even money.
To prevent fraud, networks like Lightning Network have also relied on the ability of users to broadcast an individual transaction. It was not, however, very sufficient. Censorship of transactions also presented the risk of blacklisted addresses becoming worthless; that is if a miner has decided to implement the bitcoin blacklist. Censorship of transactions makes bitcoin mining vulnerable to attacks and fraud.
The security enforcement of the centralized system is weak because it is less authenticated than a decentralized system. Lack of authentication exposes Bitcoin’s hashing power to the risk of hijacking and attack by anyone. After the hijackings, the attacker could attack the system by performing actions like mining empty blocks and spending duplicate coins. With all these challenges, it took the decentralization of the mining protocol.