Problem

• Mining in Cryptocurrencies is Highly Centralized

  • More than 80% of mining power in Ethereum emanates from 5 mining pools. Similarly, the main 8 pools control the same fraction of mining power in Bitcoin.

• Transaction Censorship and Single Point of Failure

  • Pools dictate the transaction sets in new blocks, not miners. Pools are subject to continuous DDoS attacks. If a big pool goes down, the security of the network is significantly compromised.

• Mining Solo is Difficult for Small Miners

  • High variance of returns, hard for users to plan economically.

• Centralized Pools Take High Fees

  • To cover for their operation costs and gain profits.

Advantage

• Decentralized
  • No centralized operators managing the pool.
• Secure
  • Secure against both malicious and cheating miners, fully protected from DDoS attacks.
• Efficient & Scalable
  • Even more efficient than centralized pools. Can handle thousands of miners.

So I think the future is decentralized mining pools's time.