Company Name: DEMAND
Founders: Alejandro De La Torre and Filippo Merli
Date Founded: 2023
Location of Headquarters: Lisbon, Portugal and Florence, Italy
Amount of Bitcoin in Treasury: “Currently being bootstrapped”
Number of Employees: 2
Website: https://www.dmnd.work/
Public or Private? Private
Alejandro De La Torre is deeply worried that Bitcoin mining is too centralized, and he’s on an objective to alter that. This is why he began DEMAND, a Bitcoin mining swimming pool that puts power back in the hands of independent Bitcoin miners.
Before entering into how DEMAND works, however, it’s important to comprehend what De La Torre has actually gained from his time in the Bitcoin mining market so regarding much better comprehend his inspiration in beginning DEMAND.
De La Torre’s History In The Bitcoin Mining Space
De La Torre has actually worked as the VP of Poolin, among the biggest Bitcoin and crypto mining swimming pools worldwide, along with the VP of Business Operations for BTC.com, which also ran its own Bitcoin mining swimming pool. What he saw throughout his time in these 2 functions made him understand that there was little time to lose in decentralizing the Bitcoin mining landscape.
“The experience I had in the last pools made me realize that we needed a change in the mining pool industry and we needed it very, very quickly,” De La Torre informed Bitcoin Magazine. “There’s a very clear problem with centralization in mining pools today, and I was able to pinpoint that issue while working at BTC.com and Poolin.”
De La Torre went on to explain the number of Bitcoin mining swimming pools are now proxies for a bigger swimming pool, which he didn’t discuss by name (it’s Antpool), and described that such centralization has the power to seriously harm Bitcoin.
“The anchor pool is close to 50% of the network now. It allows for a 51% attack on the network, which would be catastrophic,” stated De La Torre.
“I don’t think they would ever do it, but the possibility is there, which is already a huge red flag,” he included.
De La Torre also mentioned that such levels of centralization position dangers when it pertains to network censorship, highlighting that it wouldn’t be challenging for this significant swimming pool to censor half of the deals on the Bitcoin network.
The capacity for censorship and a 51% attack “are a very clear and present danger that we have in Bitcoin right now,” according to De La Torre.
Power To The Solo Miners
In response to this, De La Torre and his service partner, Felippo Merli, released DEMAND Pool in November 2023 with the objective of putting the power back in the hands of solo miners.
DEMAND is the world’s very first Stratum V2 mining swimming pool. Stratum V2 is an open-source messaging procedure that allows miners and swimming pools to interact straight with each other, minimizing mining facilities requirements compared to its previous version, and allowing solo miners to pick their own mining design templates. This latter ability is among the significant functions that sets Stratum V2 apart from other mining swimming pool procedures.
“Pools today are the ones who are in charge of building the blocks and adding the transactions into the blocks,” stated De La Torre. “With Stratum V2 — with DEMAND — the miners themselves will be able to build the blocks and add the transactions that they want.”
Most filtering in mining swimming pools today is done at the swimming pool level, not the specific miner level. De La Torre comprehends that particularly in the wake of the intros of procedures like Ordinals and Runes, miners desire more control over what kinds of deals they consist of in their blocks. And De La Torre thinks miners ought to have this power, since it contributes to the principles of decentralization.
“This gives me less power. That’s what I want. I don’t want the power. I’m done with that power,” stated De La Torre. “I’ve had it before, and it’s too much power in the hands of too few. And that’s not what Bitcoin is. Bitcoin is decentralization, and this is furthering that.”
In efforts to assist miners with filtering, DEMAND has actually developed a series of mining design templates that miners can easily utilize in their operations.
Incentivizing Solo Miners
De La Torre understands that the chances of mining a block protest small solo miners, however he doesn’t believe they shouldn’t offer discovering one a shot, and he’s also developed other methods to incentivize solo miners to come online.
“You’ve got to heat up your home during winter, right? Why not just use a Bitcoin miner as a heater?” stated De La Torre.
“If you’re lucky, you hit a block and you just made your wife very happy,” he included with a laugh.
Solo miners who sign up with DEMAND Pool will also have the choice to offer the hash rate they produce on a market, making sure that they get some earnings for their efforts. DEMAND has actually established a handle the hash rate market Rigly and prepares to develop more collaborations.
De La Torre also discussed how DEMAND payments will be done by means of the PPLNS (Pay Per Last N Share) system. With PPLNS, revenues are assigned based upon the number obstructs a mining swimming pool mines each day and payments change based upon the swimming pool’s luck in mining blocks.
This system varies from the FPPS (Fee Pay Per Share) system, which is frequently utilized in the significant mining swimming pools. With FPPS, miners charge a service charge based upon theoretical earnings, and miners earn money whether the swimming pool discovers a block or not.
De La Torre understands that it might sound appealing to miners to earn money regularly with FPPS, however he fasted to mention that payments through both PPLNS and FPPS are similar over the long term.
“A lot of people have some misunderstandings about PPLNS,” stated De La Torre.
“FPPS gives you constant payouts, which is fine. I understand why a miner would find FPPS. However, PPLNS over enough time averages out to about the same,” he included.
“Yes, you won’t have constant payouts, but you will have incorrect payouts according to how much hash rate DEMAND has — and we intend to have a good amount. You will still be getting a constant payout, or it would average out to more or less the same. So, there’s no real downside to it.”
De La Torre also mentioned that solo mining as part of DEMAND’s swimming pool is among the very best methods for Bitcoin lovers to get their hands on non-KYC bitcoin.
He also worried the reality that solo miners’ coming online will do something else that’s essential to keeping Bitcoin decentralized — it will bring more nodes online.
Send Nodes
To usage DEMAND’s block design templates, miners need to run their own nodes. This implies that solo miners would not just add to the decentralization of Bitcoin’s hash rate however also to the decentralization of its governance.
“Not only do we want the solo community and the home mining community to flourish and to make more money, but we also want node proliferation,” stated De La Torre.
“Solo miners will provide hash rate to secure the network and potentially make some bitcoin and also help with maintaining Bitcoin Core or whatever Bitcoin client they want. Nodes are good for the health of the system,” he included.
Looking Ahead
De La Torre also stated that DEMAND is presently dealing with broadening its services to pooled mining, which DEMAND will actively be searching for miners to come on board.
He’s pledged to make DEMAND a “stable and trustworthy pool with transparent payouts,” separating it from the “black box” swimming pools out there.
De La Torre appears to be doing whatever in his power to bring more independent miners online, and as he set out his prepare for DEMAND in my discussion with him, there was a palpable sense of seriousness in his voice.
“The centralization of Bitcoin mining pools is becoming a very serious issue, and it’s up to us as the mining community to do something about it,” stated De La Torre. “If we don’t, it’s not good.”
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