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49

A share is a hash smaller than the target for difficulty of 1* (see clarification at end). Every hash created has a 1 in ~4 billion (2^32) chance of being a valid share. In comparison if the difficulty of network is 2,000,000 then a share is 2 million times "easier" to find than a valid hash for the block, and on average it will take 2 million shares (8 ...


35

With pooled mining, at 900Mhash/s, you'll need a new work unit every 3 seconds or so. Each work unit requires about 256 bytes out and about 768 bytes back. So that's 700 bits per second out and about 2,000 bits per second back. Essentially, zero. Solo mining is a bit harder to estimate. You will need to receive and relay all new blocks as they are ...


18

Check this page: How soon might I expect to generate a block? So with the current difficulty 510,929,738, and a 1Ghash/s mining rig (faster than your CPU) you'd do this math: 510929738 * Math.pow(2,32) / Math.pow(10,9) / 60 / 60 / 24 / 365 So to find a block at this difficulty with a 1Ghash mining rig it would take you about 69 years on average. Good ...


17

Take the total network Th/s and divide by your total Th/s. That number gives you you a number that tells you how many blocks will occur before you get one (on average). So if there is currently 3,666 Th/s on the network, and you have a 0.55 Th/s (like you would if you have a $5,000 KNCMiner Jupiter ASIC), then 3,666/0.55 = 6,665. That means you have 1/6,...


15

It completely depends on the "pool fee". Theoretically, with a zero percent pool fee, solo mining and pooled mining should, over the long term, produce precisely the same revenue. The only exception is that some (most) pools keep the transaction fees for themselves. If you mine solo, with an expected 5 BTC/day take, that will mean on average you'll mine a ...


13

As long as you're in good communication with the network and have a hashrate measured in something better than minutes per hash, yes, you technically do have a chance of successfully mining a block, even if your hashrate is tiny compared to the whole network. Then the question is, what are your chances and should you do it? I think an analogy with a lottery ...


12

Yes, but not efficiently. In fact, CPU's are so bad at mining bitcoin that the option was removed from the user interface. However, the code is still there (though mostly as a reference implementation), and you can go to Help > Debug Window > Console and type in "setgenerate true" to turn it on. Type "setgenerate false" to stop. You can also give bitcoin ...


12

A 2X rate with a 50% chance of missing a winning nonce is no advantage at all. Incrementing the nonce is the easiest mechanism of choosing the next nonce to try, so you try the most nonces per second that way. That's all that matters. Perhaps you are under the mistaken impression that everyone is trying to mine the same block. That is not so. If you are a ...


11

A Mining Pool is a protocol for a group of miners to work together, in order to smooth out their mined coins. A miner working alone would generate a block (= 50 Bitcoin) whenever he is the first to find a correct hash. In practice, this happens quite rarely for a single miner. When several miners are working together in a pool, their earnings are split ...


11

What do the mining workers do differently then if they would be mining solo? A miner that is mining within a third-party pool doesn't need the entire block chain. In fact it doesn't need to be connected to any peers of the Bitcoin network. These miners work entirely outside of the network and could technically just need to communicate to the administrator ...


10

For Mac OSX users, you must have Snow Leopard (10.6) or newer installed. A fully-connected BitCoin wallet. see http://bitcoin.org/ If this is the first time you have launched BitCoin, it must download and verify all the existing blocks in the system. This can take an hour or longer - just ignore it for a while. Update: since the time of this ...


9

Unless the lucky winner were to announce his luck, there is no way for anyone to tell the difference. So, even if one cannot find any information suggesting that someone did, it could have happened. Blockchain.info gives the current hashing power as 47,289,554.08 GHash/s, so your chance to mine any one block would be 3/47,289,554.0 = 6.3439e-8. In Germany ...


8

Yes, but it's a similar situation to taking out insurance - many people would rather pay a known regular amount to insure their car than take the chance that they'll have to pay a large amount occasionally. Like pool mining, insurance usually works out in favour of the other party, but it's still valuable in order to reduce your variability. If you have ...


8

I do not think the question was about the "how long" it would take in average, but what are the odds, which is something completely different from my point o view. If I understand well the concept of solving blocks then there are always more people/groups/pools trying to solve one block. If that's so then solving a block is always more about the luck than ...


6

Testnet is designed to test Bitcoin software - including parts that have to do with finding blocks. As such, it should be easy for developers to generate testnet coins. Because of this, it will be easy to solo mine on a CPU to generate them, and you should not use anything heavier than that because you would ruin it for everyone else. It is also not ...


5

You need to be online because mining is sort of like a mathematical race: whoever finds the hash of the next block (with value less than the current target) wins. And in order to prove that you found this value before anybody else, you need to be online in order to broadcast it to other users.


5

Yes Erik, the mining feature is still built-in and you can check how many hashes your CPU can perform. Although it's pointless and you cannot earn anything, it is still a fun experiment that people like to try. If you have a bitcoin core installed and synced with the network, you can just simply open the command console and type in and enter: setgenerate ...


4

How about http://blockorigin.pfoe.be which aims to provide a reliable source of information by scraping pool web sites to see which pool claims ownership of each and every block (hence avoiding the problem that Peter Wuille mentions). See https://bitcointalk.org/index.php?topic=78391.0 for discussion.


4

While correct in principle, consider that mining difficulty has a pretty strong upward trend. This indicates that your relative hashing power (you compared to the difficulty/whole network) is greatest when you first start mining and it decreases over time. With some very rough estimates at the present difficulty of 10 million, 1 gigahash of computing should ...


4

If you are solo mining, then you need the entire blockchain since each block you mine references the hash code of the last block in the chain. If you don't have the last block yet, then the network will reject your mined blocks since there will already be later blocks in the blockchain. If you are mining in a pool, then you don't need the blockchain or ...


4

When you mine solo (not in a pool) then your payout is entirely based on solving the current block in the blockchain before anyone else, and collecting the "bounty" on that block. In Bitcoin terms, the block bounty was 50 BTC at the start of the blockchain, and recently decreased to 25 BTC -- it will continue decreasing steadily until all BTC are mined. The ...


4

The mining pool coordinates the workers. Think of it like a lottery. If you and your friends all buy tickets in the lottery the group has a better chance of winning. To be fair in the lottery example everyone should be rewarded proportional to the amount of money spent on tickets. So if there are 20 tickets for the pool one person purchased 10 and two people ...


4

In order to be able to calculate the nonce for the next block you need all the information from the last known block. The time between the blocks is 10 minutes in average, so if you stay offline for more that 10 minutes you will not be able to perform any valid calculations and essentially you will be in a solo, forking mode, solving the wrong block.


4

Yes, it's possible to solo-mine using your PC. The odds are astronomically small, however. You can look up what hash rate your CPU will get here. The best possible CPU the Xeon Phi 5500 gets 140 MH/s. Current network hash rate is 570,000,000,000 MH/s. So every block, you have a 0.000000000245% chance of finding the block. You'll find one block every 76,000 ...


4

The address the block reward goes to is in the data that is being hashed. That address is the pool's. If a miner finds a hash that meets the block difficulty, changing the address to the miner's own will cause a different hash, and you don't have control over the distribution of the bits in that second hash. So you don't get a block if you change the address....


3

The first transaction in a block, "creates" an amount of new bitcoins. The miner of that block puts the address there, so it can make sure it's an address he has access to. Most solo miners are connected to a bitcoind daemon. Whenever they find a block, the new address containing the block reward is added to their wallet. When you run bfgminer, you give it ...


3

If anyone need a few testnet coins, drop me an e-mail at jim@bitlc.net with an address and we'll work it out. I have a "few" as a result of poolserver-software development and testing. @makerofthings7: 100 coins sent to you, txid: 1227db61fd3f82bde11303632e3d01ec6b386bff0cf37979736385b5a9ec6960


3

You can run as few or as many Bitcoin clients as you want. You can have them all pull from the same client, or you can have each miner pull from its own client. Just remember, the mined coins will go to the wallet of the client the miner pulled the work unit from.


3

There are a few approaches you can take as of 3/18/13 You can either be interested in the low-cost learning of the protocol and related technologies You can invest in equipment related to mining You can invest in BTC directly, exchanging cash for the few Bitcoins that are available. Just be sure to expect that up front, any of the latter two choices are a ...


3

Bitcoind will of course give different data to each of the miners connecting to it. Otherwise using multiple miners would be pointless. It needn't necessarily give a different address (though normally it does) - it's enough to change the extraNonce field.


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