Merged mining bitcoin pool
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For those users who are superficially familiar with mining terminology, the concept of merged mining is associated with pools and commingled production. However, that is not quite the case. Today we will define the terminology and find out why merged mining is beneficial for both young blockchains and small miners.
A few years ago, at the formation stage of the cryptocurrency industry, a single video card installed in a home PC was enough to gain profit. Solo mining was kind of fun for enthusiasts and did not go beyond computer cases and living rooms. However, along with mining popularity, the complexity of networks increased. Miners began to build up GPU farms seeking for computing power improvement. Then they decided to join in pools.
They usually join in pools for the sake of increasing the chances of a reward. Each miner executes a small amount of computations and contributes to the solution of a common problem. The received reward is divided between all participants in proportion to the contribution made by them. The proof-of-work algorithm supposes that the pool will succeed only in case of a significant amount of power concentrated in it.
This provoked a "pool race" where each of the unions tends to occupy a dominant position in the network. Then multi-pools appeared, or multi-coin mining pools. They are designed to maximize competitive advantages. In multi-pools it is possible to switch from one blockchain to another, relying on the state of the market and the profitability of certain cryptocurrency.
Multi-pools with special software track the complexity of mining and exchange rate of a coin. The generation of computing power led to the centralization of equipment in the hands of a minor party of miners. This put at risk one of the fundamental principles of blockchain — decentralization.
This is considered to be one of the most severe problems of young blockchain networks. In PoW network dominant users are really overpowered nowadays. Then developers started to think over on how to protect the young and growing network from being captured. Among other tools the concept of merged mining was suggested.
An important condition: cryptocurrencies involved in merged mining should use a similar algorithm. For example, SHA or Scrypt but not their combination. Merged mining makes it possible for users to mine two cryptocurrencies with the available computing power.
To connect, you need to load the blocks of each chain parent and child. The parent chain stores the set of its transactions, along with a record with the hash of the latest block created in the child chain. The child chain contains blocks with transactions related to its blockchain only.
As a rule, the parent chain is more complicated than its subsidiary, so two mining scenarios are possible:. When working in the first scenario, a block of the parent chain is generated. After it is sent to the network for confirmation. The parental network has increased complexity, so the block of the subsidiary is completed automatically and a reward is charged for two blocks from different blockchains.
If the generation of a child chain block happens, the header and hash block of the parent chain are recorded to it. The block is embedded in the child network, because along with its own header and transactions, there is an evidence of the work done in the form of hash and the header of the parent chain.
In this case, a reward for mining can be achieved in the subsidiary network. It is possible that the complexity of the solution found will be too low to prove the work of the network.
In this case, the miner keeps searching and calculating. Imagine you participate in a lottery where you guess a 6-number combination. You buy tickets hoping for a quick win. Soon you get the proper combination. Having received the award in one office, you go to another, conducting a similar drawing. There you show the ticket with a winning combination, hoping that it will be same with the results of their draw. In other words, having received a reward in one place, you get an additional chance and opportunity to hit the jackpot in another draw.
In our case, tickets and combinations for them can be replaced with hashes, offices with blockchain networks and jackpots with awards. Among firsts projects to use merged mining was Namecoin. It began as a bitcoin fork in Standard BTC software, redirected to the server and the port with Namecoin, was used for blocks calculating. It allowed to mine Bitcoin without efficiency reduction, protecting the subsidiary network.
Another famous child network is Dogecoin. Its parent network is Litecoin. In early Emercoin switched to merged mining. According to the developers, it was a thoughtful move, profitable both to miners and the network itself. Its complexity increased times, trust in the network has grown as well. Later this necessary measure for the young project allowed to transfer it into a proof-of-stake algorithm. In this way protection of a young network and the prevention of centralization were successfully implemented.
Merged mining appeared as a solution to the very specific problem of new and developing blockchains. The main thing is that its popularizers intend to preserve 2 main options of distributed databases: decentralization and impossibility of resource capture. Merged mining, integrated into several projects, seems to be a good alternative. This will increase reliability of both networks themselves and miners involved.
Thus, it will play a very positive role in the development of the entire industry. Mining pools - how profit destroys blockchain idea A few years ago, at the formation stage of the cryptocurrency industry, a single video card installed in a home PC was enough to gain profit. How does merged mining work Merged mining makes it possible for users to mine two cryptocurrencies with the available computing power. As a rule, the parent chain is more complicated than its subsidiary, so two mining scenarios are possible: Hash is esteemed within the complexity of the parent chain; Hash is esteemed within the complexity of the subsidiary chain.
Advantages of merged mining: chance to receive a reward in two places at once; no need to switch between blockchains; child network protection; usability of available capacity. Disadvantages of merged mining: mining algorithms can not be changed; not all cryptocurrencies support merged mining; software setup is more complicated.
Where is merged mining used Among firsts projects to use merged mining was Namecoin. Future of merged mining Merged mining appeared as a solution to the very specific problem of new and developing blockchains. Publication date: 3 years ago.
Can Crypto Go Green?
Welcome to the multi-billion-dollar industry of cryptocurrency mining! Bitcoin was the first decentralized cryptocurrency with an unprecedented reputation that has spawned numerous copies and innovations. It remains the largest cryptocurrency by market capitalization to this day. It singlehandedly helped create the blockchain industry and has continued to have a profound influence on the industry culture since its creation. Founded in , f2pool was one of the earliest Bitcoin mining pools. Use this comprehensive mining guide to kickstart your mining career and help secure the largest decentralized network with us!
How to Mine Dogecoin [Updated 1 Day Ago]
However, due to factors such as enormous energy consumption and requirement for complex technical hardware, Bitcoin mining has many times eluded small miners. For the uninitiated, Bitcoin uses the Proof-of-Work PoW consensus algorithm that involves computers or miners to solve complex mathematical puzzles to be eligible to earn mining rewards. As you might have figured by now, mining on the Bitcoin network is not a particularly capital-efficient task, even more so for people with not adequate resources at their disposal. Mining pools merely refer to when multiple miners pool in their resources and hashrate to mine Bitcoin economically. That being said, despite the presence of mining pools, it is quite difficult for people to mine multiple cryptocurrencies at once. This is because miners can only direct their resources toward the mining of a single cryptocurrency at a time. RSK is the first scalable smart contract platform built on top of the Bitcoin protocol. At the same time, RSK is the top merged mining platform in terms of rewards paid to the users. As it might be evident by now, merged mining implies mining different cryptocurrencies at once which entails huge cost-saving on the part of miners. Furthermore, there are a lot of advantages to employing merged mining for mining cryptocurrencies.
Even though Dogecoin is a distant Bitcoin fork with several major differences in its source code, mining Dogecoin works similar to mining Bitcoin. Just like Bitcoin, Dogecoin is a decentralized cryptocurrency, whose digital ledger is maintained by a decentralized network of nodes instead of one single party. As a result, there is no central entity to distribute the cryptocurrency out into the world. The distribution of coins has therefore been designed in a decentralized manner. The receivers of the newly issued Dogecoins are the so-called miners.
What Is Merged Mining?
A less known way of mining cryptocurrencies is merged mining. Merged mining also known as Auxiliary Proof-of-Work, is the process of mining two separate cryptocurrencies simultaneously. The process allows miners to mine on more than one blockchain at a time. Bitcoin News , September 21, Bitcoin News , October 12,
Mining Pool. Merge Mining Pool is located in the U. It provides the Vardiff,Stratum,Monitoring features. It does support the merged mining and the transaction fee share with the miner. You can follow this pool on Twitter as well as you can explore the more details and setup guide from their website. Pool Features Vardiff Stratum Monitoring. Server Locations U.
Merge Mining Pool
Bitcoin Stack Exchange is a question and answer site for Bitcoin crypto-currency enthusiasts. It only takes a minute to sign up. Connect and share knowledge within a single location that is structured and easy to search. How would one go about detecting whether a mining pool is being dishonest by performing merged-mining without sharing the Namecoin income with its miners?
In any proof of work-based cryptocurrency, every transaction is validated by a miner. The transaction gets added to the blockchain only after such a validation takes place. However, we also know that mining requires computers with advanced computing capabilities. Therefore, retail investors who do not have access to such advanced computing equipment find themselves at a disadvantage. In order to overcome these challenges, mining pools have been created. In this article, we will have a closer look at the concept of mining pools as well as their advantages and disadvantages.
Kickstart projects on Syscoin's Layer 1 NEVM solution and rest easy knowing you are backed by Bitcoin's Proof-of-Work security and all this energy is recycled thanks to merge-mining. Use all of your favorite EVM tools to build dApps that require the most industry proven security. Be ready to plug into futuristic scalability enabled by ZK-Rollups and Validium, coming in early Syscoin supports your project with a robust masternode service-layer that provides additional ledger security with chainlocks. Get Started. Ecosystem Partners.
The solution constitutes a comprehensive service for coin mining and includes a set of web and desktop apps for managing mining processes. Uninterrupted operation thanks to smart load balancing and well-thought-out disaster recovery plan. The pool then calculates the contribution of each miner and distributes coins according to their contribution.