Tether and Ocean Mining Pool Team Up to Decentralize Bitcoin Block Building
Tether and Ocean Mining Pool Team Up to Decentralize Bitcoin Block Building
A seismic shift is occurring in the Bitcoin mining landscape. With Tether, the issuer of the world's largest stablecoin USDT, with a market cap of $144.62 billion as of April 16, 2025, directing its Bitcoin hashrate to Ocean Mining Pool, a new era of decentralized block building is dawning. This collaboration seeks to address the increasing centralization of Bitcoin mining, empowering smaller miners and bolstering the network's resilience against censorship.
The Centralization Challenge in Bitcoin Mining
While Bitcoin's hashrate is geographically decentralized, the process of block building has become increasingly concentrated in the hands of a few dominant mining pools. Foundry USA, AntPool, and ViaBTC currently control a significant portion of the block-building process, accounting for over 66% of all blocks mined. This centralization poses several risks to the Bitcoin network:
- Censorship: A central authority could potentially censor transactions, preventing them from being included in blocks.
- Manipulation: Dominant pools could manipulate transaction ordering to their advantage.
- Single Point of Failure: Over-reliance on a few entities creates a single point of failure, making the network vulnerable to attacks or regulatory pressures.
Tether and Ocean's Decentralization Solution
To combat these centralizing forces, Tether is partnering with Ocean Mining Pool, a decentralized mining pool founded by Bitcoin Core developer Luke Dashjr. The collaboration aims to leverage Ocean's innovative DATUM protocol to empower miners and decentralize block building.
Key Components of the Solution:
- DATUM Protocol: Ocean's open-source DATUM protocol enables miners to build their own block templates, reducing their dependence on centralized intermediaries. This empowers miners to select transactions and construct blocks independently, enhancing censorship resistance.
- Hashrate Allocation: Tether will direct its existing and future Bitcoin hashrate to Ocean's mining pool, providing a much-needed boost to Ocean's hashrate and increasing its share of mined blocks.
- Global Deployment: Tether will deploy Ocean's DATUM software across its mining operations worldwide, including in rural areas in Africa, Latin America, Uruguay, Paraguay, and El Salvador. This ensures global competitiveness while promoting geographic and operational diversity.
How DATUM Works
The DATUM protocol allows for on-site generation of unique block templates and aggregates thousands of rig connections with low-latency performance. This enables even miners in low-bandwidth regions to participate effectively in block building.
The Impact of the Partnership
Tether's support is expected to significantly boost Ocean's hashrate and market share. Currently, Ocean mines between 0.2% and 1% of Bitcoin blocks, with a hashrate of 18.3 exahashes per second (EH/s) over the last 24 hours. In comparison, Foundry USA's hashrate over the same timeframe has exceeded 298 EH/s.
Paolo Ardoino, CEO of Tether, stated that deploying hashrate to OCEAN aligns with Tether's mining investments and their broader mission to fortify Bitcoin against centralizing forces.
The Broader Implications for Bitcoin
The Tether-Ocean partnership has far-reaching implications for the Bitcoin ecosystem:
- Enhanced Decentralization: By empowering smaller miners and promoting independent block building, the partnership contributes to a more decentralized and resilient Bitcoin network.
- Increased Censorship Resistance: The DATUM protocol enables miners to resist censorship attempts, ensuring that all valid transactions have a chance to be included in blocks.
- Greater Geographic Diversity: Tether's global deployment of Ocean's software promotes geographic diversity in mining, reducing the network's vulnerability to localized disruptions.
- Innovation in Mining Technology: The partnership encourages innovation in mining technology, paving the way for more efficient and decentralized mining practices.
Tether's Growing Bitcoin Footprint
Tether has been steadily increasing its involvement in Bitcoin mining. In late 2023, the company announced a $500 million investment in Bitcoin mining infrastructure. Tether's mining operations are located in various regions, including Latin America and Africa.
Quotes from Industry Leaders
"As a company committed to financial freedom and open access, we see supporting decentralization in Bitcoin mining as essential to the network's long-term integrity," said Paolo Ardoino, CEO of Tether.
"Tether's decision to mine on OCEAN reflects months of deep technical evaluation. We believe the DATUM protocol is the software stack most aligned with Bitcoin's decentralization ethos," said Giv Zanganeh, VP of Mining & Energy at Tether.
The Future of Bitcoin Mining
The Tether-Ocean partnership represents a significant step towards a more decentralized and resilient Bitcoin mining ecosystem. By empowering smaller miners, promoting independent block building, and fostering innovation in mining technology, this collaboration has the potential to reshape the future of Bitcoin mining. As the Bitcoin network continues to grow and evolve, decentralization will be crucial to ensuring its long-term security, stability, and censorship resistance.