Tether Partners with Ocean to Decentralize Bitcoin Mining, Boosts Hashrate by 18.3 EH/s

Tether, the issuer of the world's largest stablecoin, has partnered with Ocean to decentralize Bitcoin mining operations. This collaboration aims to optimize Tether's hashrate and contribute to the decentralization of Bitcoin's network, which is currently dominated by a few powerful mining pools. Tether CEO Paolo Ardoino emphasized that this partnership aligns with the company's investment goals and its commitment to strengthening the Bitcoin network.

Tether's decision to support decentralization in Bitcoin mining is driven by its mission to promote financial freedom and open access. By deploying its hashrate to Ocean, Tether aims to fortify Bitcoin against centralizing forces. Ocean's approach to decentralizing the mining process involves using the open-source DATUM protocol, which allows block miners to create custom block templates. This method enables Tether to extend its mining operations to remote African communities, enhancing the network's resilience and reach.

Currently, a small number of mining pools, including AntPool, Foundry USA, and ViaBTC, dominate the block-building process. These pools mine a significant portion of the available blocks, posing threats such as censorship, block integrity, and market manipulation. Ocean, with a hashrate of 18.3 Exahashes per second (EH/s), is a smaller player in the mining landscape but aims to expand its operations. Tether's involvement with Ocean is expected to contribute to a more decentralized and resilient Bitcoin network.

Tether's partnership with Ocean is part of its broader strategy to diversify its operations and extend its global reach. The company has relocated its headquarters to El Salvador, a region known for its crypto-friendly policies, and has operations in other regions as well. Tether's investment in Bitcoin mining, including a $500 million commitment in 2023, reflects its long-term vision for the cryptocurrency ecosystem. By leveraging the DATUM protocol, Tether can create on-site custom block templates and combine thousands of rigs with minimal latency, further enhancing its mining capabilities.

Giv Zanganeh, VP Mining and Energy at Tether, highlighted that the decision to mine on Ocean was based on a thorough technical evaluation. The DATUM protocol's architecture aligns with Bitcoin's decentralization ethos and enables reliable connectivity even in low-bandwidth regions. This partnership not only supports Tether's mining operations but also contributes to the overall health and decentralization of the Bitcoin network.