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Bitcoin Essentials

Bitcoin Essentials

By : Szmigielski
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Bitcoin Essentials

Bitcoin Essentials

2 (2)
By: Szmigielski

Overview of this book

Blockchain is being billed as the technology of the future. Bitcoin is the first application of that technology. Mining is what makes it all possible. Exploring mining from a practical perspective will help you make informed decisions about your mining setup. Understanding what the future may hold for blockchains, and therefore for mining, will help you position yourself to take advantage of the impending changes. This practical guide starts with an introduction to Bitcoin wallets, as well as mining hardware and software. You will move on to learn about different mining techniques using the CPU, GPU, FPGA, and ultimately the ASIC as an example. After this, you will gain an insight into solo mining and pool mining, and see the differences between the two. The book will then walk you through large-scale mining and the challenges faced during such operations. Finally, you will take a look into the future to see a world where blockchain-based applications are commonplace and mining is ubiquitous.
Table of Contents (10 chapters)
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9
Index

Solo mining

In this chapter, we are assuming that you have your hardware connected and configured. Take a look at the previous chapters if you need help with configuring your mining hardware. Here, we will concentrate more on setup and the factors that will affect your decision to mine all by yourself versus mining with a pool.

Solo mining is the process of mining where a miner performs all calculations by him/herself. Any blocks found are credited to the miner and all rewards are kept by the miner. In solo mining, the miner competes against all other miners, pools, and individuals to solve a block.

Mining solo can be thought of as mining in a pool where you are the only worker. Instead of connecting to a pool, you will connect to your wallet and the wallet will act as a pool. The wallet gives the mining software all the necessary details in the form of a candidate block in order to start hashing it away. Therefore, running a wallet known as a full node is required for solo mining.

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