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 "@id": "https://wulfkaal.github.io/entities/mining-pools",
 "identifier": "kaal:entity:mining-pools",
 "name": "Mining pools",
 "termCode": "mining-pools",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3227933-019",
   "identifier": "kaal:claim:3227933-019",
   "text": "Most current blockchain applications lack complete decentralization: proof of work style validation has produced mining pools because of economies of scale and unbalanced reward structures.",
   "abstract": "For instance, the traditional mechanism for validating and verifying a new block of transactions – e.g., Bitcoin's proof of work protocol - has led to \"mining pools\" as a result of economies of scale and unbalanced reward structures.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933",
   "datePublished": "2018",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "proof of work validation mechanisms"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3227967-032",
   "identifier": "kaal:claim:3227967-032",
   "text": "Existing blockchains and DAOs still lack genuine decentralization, and there are currently no true DAOs: Bitcoin's proof of work protocol has produced mining pools because of economies of scale and unbalanced reward structures.",
   "abstract": "In our discussion, the following weaknesses were highlighted. There is still a lack of decentralization (there are currently no \"true\" DAOs). For instance, Bitcoin's proof of work protocol has led to \"mining pools\" because of economies of scale and unbalanced reward structures.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967",
   "datePublished": "2018",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "proof of work blockchains as of 2018"
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   "@id": "https://wulfkaal.github.io/claims/3266953-024",
   "identifier": "kaal:claim:3266953-024",
   "text": "Because all fungible fees are already shared in proper proportion among Anchor holders, participants have less reason to join a mining pool, which makes the system more decentralized.",
   "abstract": "is less reason to join a mining pool, since all fungible fees are already shared in proper proportion, so it is more decentralized).",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Gopinath Sivalingam, Reputation Protocol for the Internet of Trust - Conceptual Whitepaper (2018). SSRN: https://ssrn.com/abstract=3266953",
   "datePublished": "2018",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "fee distribution proportional to Anchor token holdings"
   ],
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782193-027",
   "identifier": "kaal:claim:3782193-027",
   "text": "Bitcoin does not refute the thesis that money centralizes decentralized projects: hashing power has slowly become concentrated in mining pools until the majority of that power resides in the single country of China.",
   "abstract": "Slowly, Bitcoin hashing power has become more concentrated in mining pools, until today the ma- jority of power resides in the single country of China.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193",
   "datePublished": "2021",
   "claim_type": "empirical",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "Bitcoin after roughly ten years of operation, as of the authors' writing"
   ],
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3808873-008",
   "identifier": "kaal:claim:3808873-008",
   "text": "Proof of Work block rewards structurally reintroduce centralization: the economic nature of mining rewards incentivizes degrees of centralization through collective action of nodes that share rewards as a group, that is, mining pools.",
   "abstract": "The economic nature of these rewards incentivizes degrees of centralization in collective action of nodes that share in the mining rewards as a group, so called mining pools.",
   "citation": "Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "Proof of Work consensus with block rewards",
    "Bitcoin in the early 2020s"
   ],
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  }
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 "description": "5 claims in the published works of Wulf A. Kaal carry the concept tag 'mining-pools'. Derived node: a roster, not an adjudicated definition."
}