Why Does One Pool Control So Much?

Discussion in 'PoS Pools' started by minerparts-ben, Mar 29, 2017.

  1. 2017/12/15 - Decred v1.1.2 released! → Release Notes  → Downloads
  1. minerparts-ben

    minerparts-ben New Member

    Mar 13, 2017
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    Austin, TX, USA
    Why does one pool control more tickets than all the rest of pools combined?
     
  2. davecgh

    davecgh Hero Member
    Developer Organizer

    Dec 31, 2015
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    I think this has to do with two things really.

    The first is that said pool is advertised on a really useful statistics site since the creator of that site and the pool in question are the same person. There is a bit of a network effect going on.

    The second is the extremely mistaken perception that users have in regards to the way PoS pools work. Many users are somewhat familiar with PoW pools where there is typically reward sharing and thus PoW pools with higher percentages usually net more income and incorrectly apply that to PoS. PoS pools are not at all like PoW pools. The truth is that every ticket has the exact same probability of winning regardless of the number of tickets the pool has and there is no reward sharing. The only thing using a stake pool does is allow it to vote on your behalf so your wallet does not need to be online 24/7.

    While you didn't ask this question, since I mentioned it, I want to take this opportunity to talk about why the whole PoS reward sharing possibility by giving control of your coins to a pool is an extremely bad idea. I say this because I am certain somebody will try to do it and sucker uneducated users into using it. Giving control of your coins to the pool is a huge security risk. Remember what happened in Bitcoin with Mt. Gox and others where people lost hundreds of millions due to either outright theft or hacks? Anyone giving up custody of their coins to a trustee is simply playing with fire and begging to lose their money.

    Aside from the issue of trusting that the person operating such a pool wouldn't abscond with your funds, there are a ton of other issues such as what happens if the operator gets hit by bus or is otherwise incapacitated? How would you get your coins back in that scenario? Such a pool would also be an extremely high value target for hackers and other bad actors since it would control a large number of private keys. How long do you think an operator of such a pool would last if they were ever coerced to give up those funds under threat of death, torture, or imprisonment? Further, an operator of such a pool would legally be acting as a trustee and thus would be required to comply with KYC and AML regulations as well as being required by law to report on activity.

    Realistically, the above just touches the surface of why giving up control of your coins to a trustee is a monumentally bad idea.
     
    woot, Shadowlance, Noah and 2 others like this.
  3. minerparts-ben

    minerparts-ben New Member

    Mar 13, 2017
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    Austin, TX, USA
    I don't mean to take away anything from the dcrstats team. Their site is great.

    Just that if you base it solely on stats dcr.stakepool.net is better.

    As far as whether or not it makes sense... I think most users don't know how easy it is to setup a VPS with their wallet running 24/7.
     
    Shadowlance and ClokworkGremlin like this.
  4. Geostone

    Geostone New Member

    Mar 27, 2017
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    Tacoma,WA
    Well all that being said, I am in the process of having a new staking pool built for me and would love to add a mining pool to it as well if there would be enough interest. I would hope people would keep coins in their own wallet and just use the staking pool for voting purposes. Many people don't know how to set up VPS much less anything else technical. I didn't, but I have enough faith in this project that I am funding this out of my own pocket. My feeling is basically if DCR does well, we all do well.... I also have a few more ideas brewing in my head as well in hopes of doing what I can to help us all succeed, after all, we are all on the same team.
     
  5. ClokworkGremlin

    ClokworkGremlin Sr. Member

    Jan 10, 2016
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    Whatever I want.
    The total of all stakepools listed sums to about 40% of total staked tickets. That implies that ~60% of stake voters (including myself) are staking independently.

    Personally I'm using a Raspberry Pi, but I'm going to need to upgrade before the end of the year when I predict the Decred blockchain will break the 32GB limit of the microSD card I have installed on it. I'll probably be switching to an HTPC-form-factor Linux box around the middle of the year.
     
    Noah likes this.

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