Key Takeaways

  • Blockseer Mining pool will mine blocks that solely embrace filtered transactions. 
  • The mining pool will reject transactions from blacklisted wallets.
  • Twitter commentators mentioned that regulators will use the instance of Blockseer to drive different Bitcoin mining swimming pools to carry out transaction censorship.

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Blockseer, a U.S.-based subsidiary of DMG Blockchain Solutions, not too long ago introduced a personal beta model of a brand new Bitcoin mining pool. This explicit mining pool comes with a novel function, nonetheless.

Blacklisting Bitcoin Blocks

The Blockseer Mining Pool will censor transactions from blacklisted wallets and mandate miners to bear KYC, based on advertising supplies.

New blocks generated by the Blockseer pool will solely embrace filtered transactions. The filters will probably be based mostly on the information supplied by Walletscore,  the corporate’s personal blockchain forensic device, and different sources like blacklisted Bitcoin pockets addresses. 

Regulators such because the U.S. Treasury Division’s Workplace of International Asset Management (OFAC) blacklists bitcoin wallets which they’ve linked to legal exercise. 

OFAC has already blacklisted 20 new Bitcoin addresses owned by a North Korean hacking group in Could 2020, for instance. 

SIMETRI small cap big gain

Blockseer mentioned the corporate desires to adjust to OFAC and ensure its mining pool additionally rejects transactions from blacklisted wallets. Sheldon Bennett, COO of DMG, mentioned in a press release

“Blockseer’s pool brings a brand new compliance-focused normal to the trade, not solely within the information the pool offers to its customers, but additionally within the Bitcoin blocks it mines on the community. The pool is targeted on being devoid of transaction from recognized nefarious wallets.” 

Regulating Mining: A Slippery Slope

Numerous crypto commentators have been lower than bullish on the information, claiming Blockseer’s information will set the incorrect precedent. Riccardo Spagni, the earlier lead maintainer of Monero, mentioned, “it’s solely a matter of time until most Bitcoin mining swimming pools are compelled to do that transaction filtering.”

Different specialists agree. In line with Juraj Bednar, Co-Founding father of Hacktrophy, a scenario the place a mining pool decides to not embrace soiled transactions units a harmful precedent.

“If the federal government is available in and says you’ll be able to’t mine the blocks that spend these UTXOs, otherwise you’ll lose both a checking account, change account, enterprise allow or go to jail for cash laundering, a lot of the massive miners would comply. Blockseer is only a first instance,” Bednar writes in his blog.

Leo Wandersleb, the founding father of WalletScrutiny.com, wrote that the scenario might result in a mushy fork and a brand new battle amongst numerous mining swimming pools. 

Regardless that swimming pools make Bitcoin mining extra worthwhile for particular person miners, they’ve been criticized for being very centralized. As a result of mining swimming pools are centralized, they are often compelled to adjust to rules. 

Spagni mentioned that to counter this development, Bitcoin builders ought to implement new privateness options, and miners ought to undertake decentralized Bitcoin mining swimming pools to maintain the community free.  

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