Wednesday, March 29, 2017

Mining Breakdown-Why Hashpower is not full proof

There are still so many people under the false assumption that the more hashpower you have, the more you will make. This statement will be proven False today, and it will also show that the companies that make mining multiple pools in their miners will corner the market.

First let us take mining itself. The Difficulty of the math problem is based on the miner you have. This is no mystery here, but did you know that you are not being paid 24 hours a day? That is right, you are only paid for accepted shares. If you have ever watched a GPU miner go through it's cycles you will see some interesting things right in front of you to show you what is truly happening when you mine.

Let us look at a picture of a GPU miner on SGMINER.

The first thing will we show you is the difficulty. This is the difficulty of the math problem being sent
for your miner to solve, obviously an Antminer S9 would start at a higher math problem difficulty, and that means more often it would come to a difficulty level it would have problems with. This would then force the miner to request work update and lower the difficulty. You will notice this on the pool when your hash rate decreases. That does not mean your miner is not working, it means it came to a difficulty level it cannot handle. So it will lower the difficulty rate for you to again be accepting shares. Through all of this You are not being paid.

This is why you mine multiple pools, the other coins being mined will be doing the same thing, however, since the difficulty is lower in some cases, it creates a failsafe so that you are still earning from one pool or the other.

Hashpower is fine, but the mining process is the same. You only get paid from accepted shares. This is the main reason it is called proof of work. Proof of work does not mean your miner is turned on and working. Proof of work means your accepted shares, or work completed is what you are being paid for.

To go into detail a little more if your difficulty is set to 120, for example, that means your miner will be working and once the 120 shares is completed you will see something like this

[2017-03-29 09:47:06] Accepted 96c0adder Diff 249/120 GPU 0 Pool 0

In other words the date and time the accepted shares were completed shows they are accepted and the block number it was worked on and the difficulty was 249 and you completed all 120 shares with the one GPU at the pool 0

So I cannot stress this enough, the myth of hashpower will never produce your fruits like you think. It is based on the myth that you are getting paid 24 hours a day when you are not.

I hope this breaks it down a little better for you to fully understand the mining process.

1 comment:

  1. Most people truly do not understand that it is multiple streams of mining income. I will get to that in a later post on this blog