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When it comes to hashing does each mining entity use total random seed for each of their hashing function or do they have a range like " Im gonna cover from 0 to 500, and you cover from 500 to 1000, then if nobody find it we up 500 more "

And if they do use range does they tell it to other mining pool, so that they are not searching around the same number ?

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Most mining pools use the stratum protocol. Part of this protocol includes a field for part of the extraNonce, named extraNonce1. The extraNonce is just extra data that is put in the coinbase transaction and used as a nonce in addition to the block's nonce. Each mining worker can then append their own extraNonce to extraNonce1. This second part is named extraNonce2

Typically what mining pools do is they issue work to each worker with a different extraNonce1. This allows the worker to use the entirety of the nonce field as well as their own space for extraNonce2. The submitted work can also be identified to belong to a particular worker by examining the extraNonce1.

I'm not sure how specific mining pool software determine what extraNonce1 to give out, but an obvious method would be to do so sequentially - each time work is issued, extraNonce1 is incremented so that each worker gets something different to work on.

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  • It's just randomly assigned. There's no point in trying to make any of this sequential, as it would require pool servers to coordinate unnecessarily. – Anonymous Jan 8 at 20:16
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Im gonna cover from 0 to 500, and you cover from 500 to 1000, then if nobody find it we up 500 more

Yes, the server coordinates this:

The server SHOULD assign disjoint subspaces of the 8 byte nonce space to miners, avoiding the problem of multiple miners working on the same problem.

And if they do use range does they tell it to other mining pool, so that they are not searching around the same number ?

No, instead, usually coinbase tx contains the pool name which guarantees separate search spaces. EDIT: This is not needed since the payout address is different already (thanks, Pieter Wuille)

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    It doesn't need the pool name; you can mine anonymously. But at the very least, the payout address of one miner won't match that of another (they want to pay themselves!), so the coinbase tx will never collide. – Pieter Wuille Jan 8 at 19:58

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