Bitcoin Mining Guide - Getting started with Bitcoin mining
Q&A series v. 1.0
Building Whalesburg We are getting questions from investors and bloggers who are not professional miners. They know in common words what it means, what hardware miners use but are not so familiar with numbers of this field. We regularly get questions how much profit Whalesburg will bring to our customers. So we decided to write a post which explains the basics of mining ROI.
This article is not for skilled miners; some details are not covered here!
What is typical ROI in mining, how Whalesburg will improve it? Mining ROI hardly depends on the hardware you use (GPU or ASICs), cryptocurrency prices, network difficulty, hashrate and other variables, which changes over time. It means that real data may hardly differ from those provided in this article. Let’s refer to a well-known website Cryptocompare.com on the page of Antminer S9 (https://www.cryptocompare.com/mining/bitmain/antminer-s9-mine). This website is quite popular and has an API used by thousands, so the data seems to be trustworthy. It tells that the price of a single piece of S9 is $2,725, its power consumption equals 1,375W, return per year is $3560 (incl. electricity costs) and ROI equals 130%. This way you will get $3560 — $2725 = $835 net income at the end of the first year if variables below will remain same. The second year will bring you $3560 more. Note calculations was made using price of 1 BTC = $10516, electricity price $0.12 per kW/h and network difficulty = 18,633,837 PH/s. Now let’s take a look at whattomine.com website on SHA 256 algorithm: screenshot is in a Medium post As you can see, there is an option to mine UNIT which more profitable than BTC by 31% (!!!). So switching some of the pool’s hashpowers to this coin and converting UNIT to BTC on the fly could increase miners profit. This is the main concept of Whalesburg smart mining pool. There is another problem — low UNIT’s network hashrate which can prevent this coin being such a profitable one if we will switch all our powers to it. We are developing an algorithm which will vary hash powers among new coins and split profits between all participants. So, if someone will mine COIN1 with 130% BPR (BTC Profit Rate) and other will mine Bitcoin with 100% BPR — each of them both will get 15% more profit than just mining BTC. A module which responds for payouts will convert them to BTC by intent and split rewards among participants with PPLNS method. Same picture we can see on other algorithms. For example our MVP use Ethash: screenshot is in a Medium post Will your partners who are mining hosting companies hold WBT or they will propose Whalesburg to their clients? All partners will have a will to hold WBT tokens for their clients, and they agree to such terms. The fee of 0,45% is cheap; additionally, they get a monitoring tool built to fulfill their needs. It is a win-win deal. Clients of our partners are investors, not IT geeks. They don’t need to hold these tokens to see increased ROI in reports. We offer services to any size mining facilities. They will want to hold our tokens and use our software. Can you make some more concrete arguments in favor of Whalesburg regarding time-saving and increased ROI? Time-saving: Now miners need to set a bunch of tools like EthMiner, Autominer, Claymore, Afterburner, and others. We incorporate all this functionality in one. Miners need to analyze the profitability of dozens of coins, look for good pools, create and run a .bat or .sh file to stop/run miners. They need to understand this all! Miners need to monitor the state of their hardware manually, and if something happened (drops of hash rate), they need to become a hardware doctors and to heal their farms. Let me tell you a story. Miner has a mining rig built with 8 GPU cards. He mines ETH with X MH/s. Suddenly he finds that hash rate become 0.6X MH/s — this is a 40% drop!!! But all the cards are working, responding at the same delay and have the same hash rate which is (0.6X)/8 MH/s. So Miner takes out GPUs one by one and restarts this rig until he founds one GPU card which causes a problem. He replaces this card with another one, and his rig’s hash rate returns to X MH/s. He still doesn’t know what is wrong with his GPU card. The Whalesburg monitoring tool can prevent failures and diagnose problems automatically and notify Miner. Even try to heal it disconnecting card programmatically. Return rate: A long time ago we experimented with my friends who own mining rigs and who were mining ETH. We’ve chosen most popular “smart mining pools” like Nicehash, Miner gate, suprnova.cc and solo mining mode with Claymore miner. The last mode was to mine with Whalesburg proof-of-concept solution — it was EthMiner + Autominer which connects to a pool of the most profitable coin among EtHash algorithm. So we connected five mining farms of the same hash rate to each of these modes and start to gather live statistics. A week was gone, and we calculated profits, rates, metrics: Lowest was solo mode mining with Claymore (obvious reasons — low hash rate, high difficulty). And still it brought to rig owner around 80% to average experiment income; Then go Nicehash and Minergate with 90% of average income, and both more-less were looking similar. Suprnova.cc was the best among all the previous and gave 115% of average experiment income. Whalesburg.com chart was hopping from one coin to another frequently at the start, then it stabilized and showed 125% of average income. Why we generate more profits, strong part: The first server-side auto-witching algorithm. The one in the world — all other smart pools leave this to a clients side. Transparent fees. Blockchain-based accounting shows we are not hiding a penny and using actual exchange rates. We have more Ethash coins already, at the start. We have other architecture that other mining pools, the proprietary software we coded our own from scratch. To be confident we can promise at least +15% income to whatever they use now. Weaknesses: Whalesburg is in the early stage. We have just released an MVP. Our pool’s hashrate on start will be low comparing to the biggest pools on the market. This is what we need to work out, but it will be easy. — Whalesburg team — Join telegram chat: https://t.me/whalesburg Test our MVP: http://pool.whalesburg.com Stay tuned!
A Proposal Concerning Majority Control of the Blockchain by a Mining Pool
I've been involuntarily obsessing about this for a few days. More specifically, about an approach which could substantially reduce the likelihood of majority control by a mining pool, especially an approach which does not require changes to the existing Bitcoin protocol. The whole 51% attack thing, whether or not it would actually cause any real damage, is a bit embarrassing for this community, and it's been generally agreed that something needs to be done to put this issue to rest and alleviate fears (whether rational or not), but what exactly? The basic idea here, as I've loosely formulated, is to distribute bitcoin mining, more along the lines of what Satoshi originally intended, by leveraging the "principle of least effort". That is, by making it easier and more effective for miners and pool operators to do things in a way which also makes it less probable that any single entity, especially a pool operator, can gain majority control of the blockchain. We could do this by introducing an official mining-pool protocol which makes it easier for miners to join and switch pools, as well as for pool operators to set up and establish their own mining pools. This protocol would take power away from pool operators by making sure individual mining participants have full control over which transactions are selected for each of the blocks they mine. In this way, a mining pool authority would not be able to dictate which transactions get mined in order to mine ahead and double-spend their bitcoins. The concept for this new mining-pool protocol is fairly simple: In order for a miner to collect their share of pool money, they submit a proof-of-hashing-power to a mining pool authority. This is accomplished by caching their "best" transaction block, the one with the smallest hash value, and then submitting it to the pool authority at the point in time when they give up on the current block and start mining the next one. The key is that the miner must also include a transaction to spend their coinbase, by transferring it to a specific wallet address published by the pool operator. Failure to include this spending transaction would cause the mining pool authority to ignore that miner, excluding them from any payouts. Once a miner has hashed a block which contains a coinbase spending transaction, they can't just remove that transaction and collect the entire coinbase for themselves without invalidating the whole block, or starting over from scratch. The pool authority, on the other hand, could easily keep the coinbase payout for themselves; But this is ok, we don't need to eliminate the need for trust in mining pool authorities. With the new protocol, miners will be able to rapidly, even programmatically, switch to a more trust-worthy pool if they are unhappy with the current arrangement. Also, this risk is already inherent in existing mining pools, so the new protocol is no worse in this respect. In order for it to work, the new mining-pool protocol would need to specify: (a) how to publish information in order to establish a new mining pool, and (b) how to submit the proof-of-hashing-power to a mining-pool authority. Both of these should be fairly trivial to specify and implement (e.g. something along the lines of how RSS works). More difficult would be adding some DDoS-deterent features to keep mining pools from attacking each other. (Who knows, maybe they already do...) Mining pools established using this new protocol would no longer concern themselves with APIs, hardware, etc. Instead, they would differentiate themselves from other pools based on (1) their algorithm for distributing proceeds to member miners and (2) how those proceeds get paid out (e.g. in bitcoin, fiat, gift certificates etc). A pool that is entirely charitable, for example, might transfer the entire payout to a particular non-profit organization, while giving miners recognition for their service. Another pool operator might allow miners to keep some arbitrary portion of the coinbase in exchange for a smaller percentage of the shared payout, and so on. If this mining-pool protocol concept proves viable, the Bitcoin Foundation could lend it's weight to help establish widespread adoption. Once that happens, the playing field for mining pools should level out, as miners would tend to prefer the new protocol for the above-mentioned reasons, and in order to avoid being locked-in to a single pool. All objections, arguments against, or improvements to the above are most welcome. My apologies in advance if I am unable to reply to comments in a timely manner.
It has liberal limits of 2BTC withdrawal without KYC, making it one of the best bitcoin sites out there in terms of ability to trade Bitcoin with altcoins without giving documents to shady exchanges. #3 21 Tasks: 21 is the Bitcoin startup with the largest funding so far. It is purely a Bitcoin company so far, not a ‘blockchain’ startup. Step 1 - Get The Best Bitcoin Mining Hardware. Purchasing Bitcoins - In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware on Amazon.You also may want to check the bitcoin charts. How To Start Bitcoin Mining. To begin mining bitcoins, you'll need to acquire bitcoin mining hardware.In the early days of bitcoin, it was possible to mine with A great choice for beginners, Crypto Games offers a simple version of Bitcoin lottery with all the security features you need. Crypto Games uses Provably Fair technology, with a random picker protocol for their Bitcoin lottery game. This lottery game works off of a pool system, which means that there is no limit to the prize pool, and 98.5% of the pool is divided between players. The hash rate distribution is best when split among more Bitcoin mining pools. Bitcoin Mining Pool Hash Rate Distribution. Bitcoin Mining Pool Options. For a fully decentralized pool, we highly recommend p2pool and Multipool.us. The following pools are believed to be currently fully validating blocks with Bitcoin Core 0.11 or later: Maybe you read on a forum that mining pool A is great and mining pool B sucks, only to read at a different forum that mining pool B is the best, and everyone should avoid mining pool A. To at least get you started with the factors that are objective in determining the best Ethereum mining pool I’ve put together a list of five you should
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