SOLO MINING: ADVANTAGES AND DISADVANTAGES
Solo MiningThe producing and withdrawing of a cryptocurrency is not without purpose compared to the mining of minerals in the mines. This is the only way to obtain a cryptocurrency. It is based on finding results of mathematical tasks performed by devices located in different parts of the world. The Bitcoin (abbreviated “BTC”) appear in the result of solving these tasks, without much control of any issuing center. The security is maintained through distribution.

Each operation with cryptocoins is recorded in the transaction log that is available to every network user. The miners get them along the chain. The goal is to find one key hash among countless combinations. This hash helps to get access to “fresh” transactions, as well as to a key of the block.

Who found this hash will get a reward from 20 to 26 of the BTC. Each guy is interested in how to find it as quickly as possible, because a block with a list of transactions will not be available immediately after its solution, and a searching for the next one will start.

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WHAT DOES A HASH CONTAIN?

bitcoin solo miningThis is a part of the block that was opened before this, the total number of transactions carried out in the last ten minutes and a random number that bitcoin producers need to pick up to meet the requirements of the system. The last are changing periodically for every 2016 blocks, and are selected so that the calculation of these blocks took for 14 days.

It should say that the complexity of these operations is constantly increasing, as the mining process is evolving and an increasing number of facilities taking part in it. Previously, it is enough an ordinary home computer in order to get cryptocurrency. Then “digital miners” began to use advanced graphics cards for better working.

HOW’S WORK GOING NOW?

Today the specialized devices are used for the bitcoin mining. First such devices were made simply by reprogramming of the chips. Further, ASICs joined to the game and later special integrated circuits have been developed that consume little energy and calculate hashes at a high speed. Today the whole process without ASICs do not make sense, since most of the players use them, and a work with simple graphics cards and computers becomes a simply not competitive.

Here’s a simple example – One of the top graphics cards “Radion” generates less than a half GHash/s, while consuming several hundred watts of the electricity. And the Red Fury (ASIC) “eats” only 2.5 watts and generates two and a half GHash for the same time.

After the completion of the equipment purchase, all that remains to do is to wasting the electricity in exchange for the cryptocurrency. In this case payments for the Internet will not be high because the lowest speed is enough for the mining, only the stability of the network is important.

WHICH IS BETTER, SOLO OR POOLS?

One bitcoin can be worth between 100 and 500 dollars – it depends on what equipment you are using and what rate is acting to a specific day. In 2011, it was possible to recoup the cost of a top gaming video card for a couple of weeks of coins producing, however, but the complexity of calculation is increased and it is very unprofitable to mine bitcoins solo.

This has led to the emergence of pools that are unions of miners, which include several tens, hundreds, and sometimes thousands of players. If the operation with block were crowned with success as described above, the players are given their own part of the funds equal to their contribution to the work.

The system sees a pool as the only participant that is producing hundreds of gigahashes per second. But in reality it is a central server, which distributes tasks to pool participants. Unlike the bitcoin mining in solo-mode, the collective production brings money faster, but in small portions.

Thus, among the advantages of the mining in solo mode is the ability to get all earned funds alone without need to share with anyone. But the downside of the single work is a need to purchase the expensive equipment, its configuration and arrangement of the cooling system, as well as a too long waiting for a calculation of one hash.