Right now between two to four running the largest pools control Bitcoin in the short term. That's a lot of hashing power in the hands of very, very few people. In addition pools have little incentive to run secure operations, and many pools have been hacked with their funds stolen. Those hacks could just have easily been used to attack the network itself.
This needs to change.
Pooled-solo mining is a concept Gregory Maxwell, Luke Dashjr and I were discussing at the conference two weeks ago. (credit goes to Greg and Luke; I was mostly just listening) Basically the idea is that miners with mining equipment run a local Bitcoin node and use that node to construct the blocks they mine - the same as if they were solo mining. The pools job is then to only track shares and organize payouts.
If the pool gets hacked the worst that can happen is miners are ripped off, rather than Bitcoin itself being attacked. With pooled-solo mining even a pool with a majority of hashing power wouldn't be able to do much harm to Bitcoin. (depending on the implementation they may be able to blacklist specific transactions - the pool needs to know what transactions are in the share to credit fees properly)
Tech-wise Luke created
getblocktemplate last year as a means to
audit mining pools. I'm sure Greg and Luke can explain the nitty gritty details better than I can, but essentially the plan is to take getblocktemplate and extend it as required for pooled-solo mining. This will include pool and miner software initially, and later improvements to GUIs and what not to make the whole process easier.
With the success of my recent
video project I also want to make this
Keep Bitcoin Free's next project, specifically funding a developer (likely Luke) to make this happen. Additionally once software is written and easily usable a good follow-up would be a video and other media to promote the idea to miners. No guarantees we'll be able to come up with commercially competitive remuneration, but we can at least come up with a "Thank you" tip. But first lets discuss the technical requirements to get an idea of what the scope is.
Finally, for the record, a big part of the reason why myself and other Keep Bitcoin Free supporters are interested in doing this is very much to take power over the direction of the network from big pools and put it into the hands of thousands of individual miners. It's much easier to convince people that changes to Bitcoin, like increasing the blocksize, are directly impacting decentralization when individual miners are seeing that happen to themselves.
