What is the weakest link in Bitcoin security? For me it is that mining power almost completely belongs to large pools. Of course you may argue that pools will not harm Bitcoin and will not cooperate to do so. But what if, say, they will be hacked? Even large banks/payment systems were compromised and bitcoin is supposed to be decentralized and not vulnerable to hacking any certain node. I was seeking for a way to protect from this unnecessary centralization and I actually found a way how to prevent pools. The consequence of course is that mining becomes more like a lottery instead of being more deterministic as is the case with pooled mining.
You can read details of my approach in my
whitepaper.
I implemented this idea (together with some other improvements) in
SpreadCoin.
