With the latest release of the Bitcoin Core client a few days ago, mining pools are switching overheen to this fresh version one by one. Two of the very first mining pools to do so are Bitfury, and BitClub and more mining pools are expected to go after te the coming weeks.
Mining Pools Embrace Fresh Bitcoin Core Release
There has bot a lotsbestemming of talk regarding Bitcoin Core and Bitcoin Classic overheen the past few months, and thesis discussions are far from overheen. That being said, the latest Bitcoin Core client release is forcing mining pools to upgrade, their Core offerings, or switch to Bitcoin Classic, spil the software includes the very first soft fork to enhancing the block size.
Among the very first mining, pools to upgrade their software to the latest Bitcoin Core version are Bitfury and BitClub. BitFury is one of the largest mining pools te the world, which also supports Bitcoin Classic mining for those who are interested ter doing so. It is good to see the company will stick with Bitcoin software solutions for the foreseeable future, however.
BitClub , on the other palm, has a very mixed reputation ter the world of Bitcoin and digital currency, and understandably so. However, part of their business revolves around the mining pool, and it is good to see they’re keeping on top of things, regardless of what others may think of the company thesis days.
Note from the Author: BitClub has some serious Ponzi Scheme allegations to its name. Simply because they upgrade Bitcoin Core does not make them more legitimate. Always do your own research.
Spil wij mentioned earlier, BTCC will be switching to the fresh Bitcoin Core client ter the coming two weeks spil well. Mining pools have a certain period during which they need to upgrade the client, and most of them will be testing the fresh release on a testnet before deploying it to all of their miners around the world.
Whether or not thesis decisions will influence bitcoin Classic ter any way, remains to be seen. Despite the initial success, the software solution witnessed a stagnation te support spil of late. The number of Classic blocks mined on the network has not enlargened by much te the past few weeks, but there is no significant drop-off ter hashrate either.
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About The Author
JP Buntinx is a FinTech and Bitcoin enthusiast living ter Belgium. His passion for finance and technology made him one of the world’s leading freelance Bitcoin writers, and he aims to achieve the same level of respect ter the FinTech sector.
Following the news that Ghash.io wasgoed nearing control of 51% of the bitcoin network’s hashrate, industrial bitcoin mining facility technicus BitFury has released a fresh statement telling that it has moved 1.Five petahash of its hasing power out of the major bitcoin mining pool.
The company, which operates two large-scale mining facilities te Finland and Iceland and recently raised $20m, further indicated it will budge extra petahashes out of Ghash.io overheen the next 72 hours.
Marc Aafjes, BitFury’s chief strategy and communications officer, suggested that the company felt compelled to take act due to the widespread community concern, stating:
“The high level of combined hash power ter the Ghash pool is concerning to many participants ter the system. Spil a leader and trusted fucking partner ter the bitcoin system, BitFury has determined to transfer some of its hashing power away from Ghash to help reduce thesis concerns.”
Should Ghash.io’s share of total bitcoin mining power proceed to increase, Aafjes indicated that BitFury may be willing to take extra steps to reduce the influence of the pool, adding:
“Wij will proceed to monitor this situation and if the pool comes too close again to 51% wij will budge more of our capacity.”
At press time, Ghash.io accounted for harshly 48% of the bitcoin network’s total hashing power, according to figures from Blockchain.informatie. The 2nd most powerful pool, Discus Fish, holds 11% of the network.
The threat of a 51% attack
Due to the difficulty of a given miner discovering a block, many bitcoin miners join pools, which consolidate mining power and increase miners’ chances of discovering a block and receiving proportional shares of a given prize.
Spil pools constitute a majority of the network’s hashing power, there has bot growing concern ter the community regarding the outsized influence of Ghash.io.
However some notable bitcoin community members suggest the threat is not spil grave spil widely believed, a mining pool with more than 51% of the network’s hashing power could theoretically double-spend transactions, prevent confirmations and keep contesting miners from discovering fresh blocks.
Such a threat is not unique to bitcoin, spil earlier this year litecoin mining pool Coinotron grew toward 51% of the network’s hashing total before individual miners te the pool withdrew from the cooperative.
The varied responses to Ghash.io’s growing influence ter the mining network were perhaps most visible on reddit, where bitcoin miners and enthusiasts partook te an impassioned discussion across the day.
Some reddit users took to the social network to suggest potential peer-to-peer solutions to the growing influence of centralized mining pools, while speculating on how other mining pools were able to avoid exerting such an influence on the network successfully te the past.
Still, other miners defended Ghash.io and mining pools, arguing that they are a necessary part of the ecosystem that enables independent miners to profit from bitcoin.
Picture via BitFury
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Bitcoin mining pools are a way for Bitcoin miners to pool their resources together and share their hashing power while splitting the prize identically according to the amount of shares they contributed to solving a block.
A “share” is awarded to members of the Bitcoin mining pool who present a valid proof of work that their Bitcoin miner solved. Bitcoin mining ter pools began when the difficulty for mining enlargened to the point where it could take years for slower miners to generate a block.
The solution to this problem wasgoed for miners to pool their resources so they could generate blocks quicker and therefore receive a portion of the Bitcoin block prize on a consistent ondergrond, rather than randomly once every few years.
If you solo-mine, meaning you do not mine with a Bitcoin mining pool, then you will need to ensure that you are te overeenstemming with the Bitcoin network. The best way is to use the official BitCore client.
If you participate te a Bitcoin mining pool then you will want to ensure that they are engaging te behavior that is ter agreement with your philosophy towards Bitcoin.
For example, some rogue developers have threatened to release software that could hard-fork the network which would likely result te tremendous financial harm.
Therefore, it is your duty to make sure that any Bitcoin mining power you ongezouten to a mining pool does not attempt to enforce network overeenstemming rules you disagree with.
When segwit is activated, you will want to be able to mine and relay segwit-style blocks. The following mining software has bot upgraded to support segwit.
Please note that software that supports the GetBlockTemplate (GBT) RPC vereiste be upgraded to support the BIP9 and BIP145 switches to GBT. All the programs linked above that support GBT have bot upgraded.
Segwit is already activated and enforced on testnet, so you may find it useful to test your infrastructure upgrade by mining with some petite amount of hashrate on testnet. Alternatively, Bitcoin Core 0.13.1’s regression test mode (regtest) also supports segwit by default.
Bitcoin Mining Pools
There are many good Bitcoin mining pools to choose from. Albeit it’s tempting to pick the most popular one, it’s better for the health of the network to mine with smaller pools so spil to avoid potentially harmful concentration of hashing power.
The hash rate distribution is best when split among more Bitcoin mining pools.
Bitcoin Mining Pool Hash Rate Distribution
Bitcoin Mining Pool Options
For a fully decentralized pool, wij very recommend p2pool.
The following pools are believed to be presently fully validating blocks with Bitcoin Core 0.11 or zometeen:
BTCC: BTCC is a Bitcoin exchange, wallet, and mining pool located te China. Its mining pool presently controls around 15% of the network hash rate.
Slush Pool: Slush Pool is run by Satoshi Labs, a Bitcoin company based ter the Czech Republic. Slush Pool wasgoed the very first mining pool and maintains around 7% of the network hash rate.
Antpool: [WARNING] – Bitmain operates Antpool and some consider them to be a malicious actor te the Bitcoin ecosystem because of the AntBleed scandal where they were intentionally including malware within mining equipment they sell. Ter a corporate communication, Bitmain claimed this wasgoed a feature and not a bug. This malware would enable Bitmain to remotely shut down equipment of customers or competitors thus enhancing their own profitability. Additionally, such behavior could pose a risk to the entire Bitcoin network.
Eligius: Eligius wasgoed one of the very first Bitcoin mining pools and wasgoed founded by Luke Dashjr, a Bitcoin Core developer. Today, the pool controls just under 1% of the network hash rate.
BitMinter: BitMinter, once one of the largest Bitcoin mining pools, now controls less than 1% of the network hash rate.
Kano CKPool: Kano CKPool wasgoed founded ter 2014 and presently has around 3% of the network hash rate under its control.
F2Pool: F2Pool is the 2nd largest Bitcoin mining pool, with around 25% of the network hash rate. Its user interface is ter Chinese, making it difficult for English speakers to join.
BW Pool: BW Pool controls around 7% of the network hash rate. Like F2Pool, its user interface is te Chinese, making it difficult for English speakers to join.
Bitfury: Albeit seen publically te block explorers and hash rate charts, BitFury is a private mining pool and cannot be joined.
Bitcoin Mining Pool Payment Methods
Calculating your share of the bitcoins mined can be ingewikkeld. Te an ongoing effort to come up with the fairest method and prevent gaming of the system, many calculation schemes have bot invented. The two most popular types are PPS and DGM. PPS, or ‘pay vanaf share’ shifts the risk to the mining pool while they assure payment for every share you contribute.
PPS payment schemes require a very large reserve of Ten,000 BTC te order to ensure they have the means of bearing a streak of bad luck. For this reason, most Bitcoin mining pools no longer support it.
One of the few remaining PPS pools is EclipseMC. DGM is a popular payment scheme because it offers a nice balance inbetween brief round and long round blocks. However, end users vereiste wait for utter round confirmations long after the blocks are processed.
PPS: The Pay-per-Share (PPS) treatment offers an instant, ensured payout for each share that is solved by a miner. Miners are paid out from the pools existing balance and can withdraw their payout instantly. This proefje permits for the least possible variance te payment for miners while also transferring much of the risk to the pool’s technicus.
PROP: The Proportional treatment offers a proportional distribution of the prize when a block is found amongst all workers, based off of the number of shares they have each found.
PPLNS: The Pay Vanaf Last N Shares (PPLN) treatment is similar to the proportional method, but instead of counting the number of shares te the round, it instead looks at the last N shares, no matter the boundaries of the round.
DGM: The Dual Geometric Method (DGM) is a hybrid treatment that enables the technicus to absorb some of the risk. The technicus receives a portion of payouts during brief rounds and comebacks it during longer rounds to normalize payments.
SMPPS: The Collective Maximum Pay Vanaf Share (SMPPS) uses a similar treatment to PPS but never pays more than the Bitcoin mining pool has earned.
ESMPPS: The Equalized Collective Maximum Pay Vanaf Share (ESMPPS) is similar to SMPPS, but distributes payments identically among all miners te the Bitcoin mining pool.
RSMPPS: The Latest Collective Maximum Pay Vanaf Share (RSMPPS) is also similar to SMPPS, but the system prioritizes the most latest Bitcoin miners very first.
CPPSRB: The Capped Pay Vanaf Share with Latest Backpay uses a Maximum Pay Vanaf Share (MPPS) prize system that will pay Bitcoin miners spil much spil possible using the income from finding blocks, but will never go bankrupt.
BPM: Bitcoin Pooled mining (BPM), also known spil “Slush’s pool”, uses a system where older shares from the beginning of a block round are given less weight than more latest shares. This reduces the capability to cheat the mining pool system by switching pools during a round.
POT: The Pay on Target (POT) treatment is a high variance PPS that pays out te accordance with the difficulty of work returned to the pool by a miner, rather than the difficulty of work done by the pool itself.
SCORE: The SCORE based treatment uses a system whereby a proportional prize is distributed and weighed by the time the work wasgoed submitted. This process makes zometeen shares worth more than earlier shares and scored by time, thus prizes are calculated te proportion to the scores and not shares submitted.
ELIGIUS: Eligius wasgoed designed by Luke Jr., creator of BFGMiner, to incorporate the strengths of PPS and BPM pools, spil miners submit proofs-of-work to earn shares and the pool pays out instantly. When the block prizes are distributed, they are divided identically among all shares since the last valid block and the shares contributed to stale blocks are cycled into the next block’s shares. Prizes are only paid out if a miner earns at least. 67108864 and if the amount owed is less than that it will be spinned overheen to the next block until the limit is achieved. However, if a Bitcoin miner does not submit a share for overheen a period of a week, then the pool will send any remaining balance, regardless of its size.
Triplemining: Triplemining brings together medium-sized pools with no fees and redistributes 1% of every block found, which permits your share to grow swifter than any other Bitcoin mining pool treatment. The administrators of thesis Bitcoin mining pools use some of the Bitcoins generated when a block is found to add to a jackpot that is triggered and paid out to the member of the pool who found the block. Te this way, everyone te the pool has a better chance to make extra Bitcoins, regardless of their processing power.
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BitFury is a private Bitcoin mining pool and mining chip manufacturer.
BitFury runs some of the largest private mining operations ter the world. Its mining warehouses are located ter Georgia (country) and Iceland. Spil of March 2016, BitFury managed inbetween 10-15% of the Bitcoin network hashrate.
On top of its Bitcoin mining operations, BitFury operates BitFury Capital, where it “supports the growth of the Bitcoin ecosystem through strategic partnerships and business opportunities.”
BitFury Capital has invested te Xapo, BitGo, and GoCoin.
16nm ASIC Mining Chip
BitFury announced its 16nm Bitcoin ASIC mining chip ter December 2015. The 16nm chips is one of the most effecient mining chips on the market with an efficiency of 0.055-0.07 J/GH, according to Valery Vavilov, BitFury’s CEO.
Venture Capital Rounds
BitFury: $20 million – Third
9-Jul-2015 | Mining
Investors: The Georgian Co-Investment Fund, DRW Venture Capital, iTech Capital
Country: The Netherlands
BitFury: $20 million – 2nd
9-Oct-2014 | Mining
Investors: Bill Tai, Bob Dykes, Georgian Co-Investment Fund, Lars Rasmussen
Country: The Netherlands
BitFury: $20 million – Very first
30-May-2014 | Mining
Investors: Binary Financial, Crypto Currency Playmates, Georgian Co-Investment Fund, Queensbridge Venture Vrouwen and ZAD Investment Company, Jonathan Teo, Bill Tai