LITHOS LitePaper

For many years, the attempts to make efficient, decentralized mining pools have failed or petered out after time. Although some instances of decentralized pools have existed many faced issues such as security concerns, lack of miner usage, and failures to achieve both efficiency and full decentralization. Innovation in mining pool infrastructure and software has also plataued, with Stratum v1 being the standard method of communication for sending and receiving work to mining pools. LITHOS proposes a new solution to the decentralized pool challenges, one which also brings signifcant benefits to miners outside of just decentralization.

The LITHOS protocol plans to usher in a new era for PoW mining, one where mining pools live on-chain, fully decentralized and trustless. Stratum will serve as the "networking layer" for the protocol, while the LITHOS protocol will help to verify miner's work and pay them out accordingly. LITHOS is a blockchain agnostic protocol, and mining pools for ANY PoW blockchain may be supported by LITHOS.


Non-Interactive Share Proofs (NISPs) are one half of the LITHOS protocol. NISPs allow for work created by miners, shares, to be compressed down and efficiently calculated so that miners can be paid fairly according to the shares they submitted. NISPs revolutionize decentralized pools by allowing work to be calculated within on-chain smart contracts. Moreover, NISPs place more power into the hands of miners. NISP protocols allow miners to choose their own share difficulty, and in turn, their own risk to reward ratio when receiving rewards.


Collateralization serves as the second half which backs the Lithos protocol. Collateralizized mining pools allow for local block creation and full censorship resistance. Miners may choose whatever transactions make it into their block, and may also set parameters related to governance of the Ergo blockchain. Collateralization also supports a native DeFi application built into the Lithos protocol, in which lenders provide collateral to miners in return for fees.


The LITHOS token serves as a reward for miners to help encourage decentralized mining. Moreover, the token is required as a part of collateralization, thereby building an inherent market between miners and lenders. The token will also be used to help prevent spam and create new pools in the protocol. More info about the token will be provided soon.

More information about LITHOS will be provided as we begin work on our full whitepaper.

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