OpenWest 2014/Bitcoin

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Revision as of 02:29, 18 May 2014 by Kenneth (talk | contribs)
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Summary - better to just horde Bitcoins than to mine them

Common languages - SHA256 and Scrypt-N, Script-Jane, XU-coming up

No universal wallet

Wallet is API for each coin

  • stores "block chain" (can reference)
  • communicates P2P with networks
  • provides APIs for interacting with "coin"
  • Some have built in wallet (not recommended)

Mining Software

  • works with "wallet" to "get work"
    • what "data" & "difficulty"
  • cgminer, bgfminer, sgminer, cudaminer
    • vary in support of hardware, similar APUs

CPU Mining - came first, uses desktop or laptop *maybe* kHash/sec

GPU Mining - still around - kHash/sec in a rig

ASIC mining - future - uses custom hardware - MHash/sec -> THash/sec

  • Can hook to Raspberry Pi
  • Cost is going down exponentially
  • Newer chips go obsolete in 6-12 months
  • Protocol designs
    • rewards decrease over time
    • difficulty increases w/ more miners
  • Solo mining - huge rewards / low probability
  • Pool mining - split work - miners split reward

Pools

  • Stratum pools or PzPool
  • Pool talks to wallet
  • Pool dives the work, and manages miners
  • Pool is rewarded and shares rewards
  • Many payout methods
    • PPS/PPLNS/PPLNSG/etc
    • shelved earnings
  • Pool LUCK decides a lot!!

How to choose a POOL:

  • Pool % of network hashrate
    • Dominate pools solve more blocks
  • Your % of pool
    • You want to leverage the pool < 50% but > 1%
  • DDOS resilience
    • Pools are always under attack! Ransom!
  • Pool fees
    • 0% - 3% or more transfer fees
  • Reputation & communication
    • BitcoinTalk and IRC
  • Payout methods vary threshholds or Payout Queues
  • Transfer threshold limits
  • Automated transfger to wallet or exchange

Exchanges

  • Just like stock exchange
    • BTC-e, Cryptsy, Bittrex, Poloniex, CryptoRush
    • Most go to BitcCoin & LiteCoin
  • Deposit address for each coin
  • Buy & sell orders - auto-sell orders
  • Few exchanges to USD
  • LocalBitcoins.com

Strategies:

  • What is your end goal?
  • Mine to hoard - keep a %?
  • Mine to sell - sell to what?
  • If you want to mine to BTC:
  • Rig leasing
    • lease your hashtag power
    • get pain in BTC
  • LeaseRig.net - one of the first
  • BetaRigs.com
  • NiceHash.com - thresholding!
  • Buy Bitcoin - going up by 110% a year and estimated to continue

Notes by Bethany