How Coinbase and Zcash Decentralised the Mining Power

The mining power of the Zcash network has been decentralized thanks to certain actions done by Coinbase and Zcash. These actions comprise:

• Increasing the confirmation barrier: The confirmation threshold for ZEC transactions has been raised on Coinbase and other cryptocurrency exchanges. As a result, mining pools find it more difficult to trick the network by twice spending bitcoin.
  Supporting new mining algorithms: Equihash 210 and other new mining algorithms are now supported by Coinbase. The employment of specialized hardware by mining pools to control the network has become more challenging as a result.
• Research and development funding In order to assist the Zcash network become more decentralized, Coinbase has financed research and development into new mining algorithms and other technology.
  Users have been informed about the value of decentralization by Coinbase and Zcash, who also urged users to embrace decentralized mining pools.

These actions have aided in decentralizing the Zcash network's mining capacity. The network can no longer be controlled by a single entity easily as a consequence.

Why is it crucial to decentralize mining power?

The mining industry should be decentralized for a variety of reasons. It improves network security in the first place. If a single entity has a disproportionate amount of mining power, they could attack the network. Decentralized mining makes it far more difficult for a single party to attack the network, nevertheless.

Second, a more equitable network results from the decentralization of mining power. The bulk of the mining power being controlled by one organization might perhaps provide them an unfair advantage. All miners, however, have an equal opportunity to mine the next block if the mining power is decentralized.

The network becomes more robust as mining power becomes decentralized. The network may be open to assault if a single entity has the bulk of the mining power and falls down or is hacked. The network will still function even if certain miners go down or are hacked if the mining power is decentralized.

What difficulties arise from decentralizing mining power?

The decentralization of mining power is not without its difficulties. The fact that mining is become more specialized is one difficulty. This indicates that mining is becoming more costly and challenging for people to do it economically.

Another difficulty is that certain mining pools might provide miners large power cost savings. Due to this, it may be difficult for smaller mining pools to compete.

Finally, coordinating initiatives to decentralize mining authority might be challenging. This is due to the fact that diverse considerations, such as convenience and profitability, are often what drive miners.

Conclusion

The mining power of the Zcash network has been decentralized thanks to certain actions done by Coinbase and Zcash. The network is now safer, more equitable, and more robust thanks to these measures.

Decentralizing mining authority still faces some obstacles, however. The rising specialization of mining, the discounts provided by certain mining pools, and the difficulty in coordinating decentralized mining power efforts are some of these difficulties.

Despite these difficulties, it is crucial to keep working to decentralize the Zcash network's mining capacity. The network's security, equity, and resilience depend on decentralization.