Mining

Ethereum Proof of Work (Mining) vs Proof of Stake (Staking) Profitability Comparison


Ethereum 2.0 is a set of upgrades to the current Ethereum blockchain. First of all, it introduces Proof-of-Stake consensus: validators that stake ETH will replace GPU miners in creating blocks and ensuring the network security.

Eth2 also introduces sharding that will increase the cryptocurrency blockchain bandwidth 64 times. It means that it will be able to handle at least 64x more transactions per second and even more going forward.

The initial phase of transition to Eth2 known as Phase 0 started on December 1, 2020. That was when Ethereum launched its new network called Beacon Chain that activated the Proof-of-Stake mechanism.

Although PoS is more eco-friendly as it doesn’t require a lot of power, miners are not particularly happy about the new consensus algorithm. It will be much less profitable and it doesn’t need GPUs. After the merge of the current network Ethereum 1.0 with Beacon Chain miners will have to use their GPUs to mine other coins. How much less profitable is staking compared to mining?

To answer this question, we found out their profitability and compared them. We also talk about positive and negative aspects of Proof-of-Work and Proof-of-Stake.

Ethereum’s Staking Profitability

It’s quite easy to find out staking profitability in Ethereum 2.0: the Launchpad webpage displays up-to-date stats. It also contains guidelines for validators willing to help to secure the blockchain and earn rewards.

At the current amount of coins at stake, the annual percentage rate is 5.2%. So if you invest $100 thousand, in a year you will get $105.2 thousand, provided that the cryptocurrency rate remains stable.

There are two ways to stake Ether in the new network: directly or through special services. In the first case, you should have at least 32 ETH and be capable to launch a node. A network node is a piece of software that monitors what happens in the cryptocurrency network, votes for new blocks and gets rewards.

If you don’t have 32 ETH (after all, it’s more than $151 thousand), you can use services offered by special platforms. They gather coins from users and stake them. Then they distribute rewards according to provided shares and charge fees.

For example, Binance is one of the platforms that offer such services. The platform pays out rewards in the form of BETH tokens to Spot wallets.

Advantages of Ethereum’s PoS

Ethereum’s shift to Proof-of-Stake has its advantages. Thanks to PoS, the network can be protected without huge amounts of electricity needed to power GPU mining rigs. As a result, the environment will benefit from it.

For example, the energy consumption of Bitcoin miners is extremely high: it’s comparable to the energy consumption of a small country. With that being said, major industries like construction consume more energy and pollute the environment even more.

Those who live in countries with high electricity rates will appreciate it. Especially in Europe, where electricity rates have recently gone up. Overall, the cryptocurrency industry will benefit from it: just in spring Bitcoin was criticized because of excessive amounts of energy wasted on mining.

Another advantage is node maintenance. It’s much easier to maintain a node than a rig. Plus, if one of the rig parts breaks, it will take you a lot of time to detect the problem. But if you have a node, you just need to upgrade it to the latest version.

Disadvantages of ETH Proof-of-Stake

As we already mentioned above, you need 32 ETH for staking without intermediaries. At the current exchange rate, it’s quite a lot and not everyone can afford it.

But there is a solution. You can use third-party platforms that ask you to stake much less.

Ethereum staking has a big disadvantage: as of now, it’s impossible to redeem the initial deposit. The current Eth1 network is separate from Eth2, and the latter doesn’t offer withdrawal options. They will be added after the merge of the two networks, but it’s still unclear when. So best case scenario, you can expect to redeem your deposit in 6–12 months.

And last but not least, ETH staking in the PoS network brings low profits. 5% is not convincing at all in the crypto world.

For example, Binance offers much higher interest rates on locked savings. And they also last for several weeks which would surely make investors happy.

What Can Cause Staking Profitability to Drop

Another important downside of staking is penalties. The first penalty was issued on December 3, 2020. Ironically, the validator didn’t mean to damage the network: he broke the rules out of ignorance.

We agree that network safety is crucial, but beginning validators may lose money just out of ignorance. And if you don’t upgrade your node in time, you might have even more serious problems.

price-fall-down

It’s important to note that staking profitability is bound to drop until it becomes possible to withdraw funds from the PoS network. So the only hope is that ETH rate in dollars will grow which is only possible if ETH increases in value.

Ethereum’s PoW Mining Profitability

2CryptoCalc helps to calculate PoW mining profitability and payback. 2CryptoCalc calculates profitability of one GPU of various models and for various periods of time. It can also share links to download mining programs along with their settings.

For example, here is a page with different GPUs and their payback. You can even enter the price at which a device is sold in your area to get even more precise results.

Let’s take Nvidia RTX 3070 as an example. The initial price was $580, but you can’t find it at such a price nowadays. Today you can find this model on Amazon at about $1,470.

Ethereum is the most profitable coin for RTX 3070, like for many other graphics cards.

After we enter the price, you can see that the payback period is no less than 10 months.

The graphics card can bring about $88.46 in one month and $1,061 in a year. This is about 72% of the initial investment which is almost 14x more profitable than PoS.

It’s important to note that you can get even better results. You should just spend more time on finding a used graphics card. It is cheaper than the new one, which means that the payback period will be shorter and profitability will be higher.

Say, you decided to mine on a larger scale and purchase eight graphics cards to build a rig. According to our article about building an Ethereum mining rig, it costs around $600. Let’s allow for an increase in prices and assume that today it costs $700 to build a rig.

You will need $11,760 to buy eight RTX 3070 cards. Considering the cost of a rig, we need about $12,500.

Now let’s calculate profitability. Each GPU gives out a hash rate of 41 Mh/s consuming 125 W. It’s 328 Mh/s in total which will bring about $26 a day.

Let’s not forget about expenses on electricity. A rig consumes about 1200 W. If an electricity rate is $0.07 per kWh, we get about $2.00 per day. So the net profit is $24.

The payback period is about 520 days ($12,500 [expenses] / $24 [daily profitability]), which is approximately one year and five months. Profitability in this case is 67%, as the yearly profit is about $8,484.

We used an average electricity cost. It can be lower or higher. The less you spend, the shorter your payback period and the higher your profitability.

It’s important to note that even though a rig doesn’t pay off in a year, GPU mining profitability is still much higher than that of staking. In the example above we got 73% of the initial investment in one year earning almost $8,500. You can also sell your devices anytime thus getting a surplus.

If Ethereum’s exchange rate increases, you will get your initial investment back even sooner.

Advantages of Ethereum’s PoW Mining

Ethereum’s PoW Mining on GPUs has a huge advantage over staking in terms of profitability. Some GPUs, especially used ones, can be paid off in a few months, after which you will start getting a surplus.

Plus, graphics cards are universal: you can use them to mine different cryptocurrencies. It is especially useful in the case of new projects with low mining difficulty and moderate exchange rates.

Considering the lack of devices today, graphics cards are also easy to sell. You can even make money from selling.

Disadvantages of PoW Cryptocurrency Mining

As we already mentioned above, it’s problematic to buy graphics cards nowadays. They are hard to get, and even if you find one, it will be hugely overpriced. But it doesn’t seem to stop miners: the payback period is still quite acceptable. Because of a rising demand manufacturers overprice devices even more.

One of the disadvantages of Ethereum mining on GPUs is the maintenance of devices. Even if devices operate well, you still need to fine-tune overclocking parameters, rates, etc., when mining software gets an upgrade. This takes a lot of time.

One of the most obvious downsides of PoW mining is the need for a physical location for devices. You need to keep them somewhere, ideally in the guarded area. And don’t forget about cooling and maintenance. You should also know how to set up your devices and how they operate.

Comparing PoS and PoW in Ethereum. Conclusion

PoW mining has an obvious advantage over staking in terms of profitability. Graphics cards can be paid off in about a year, which is an excellent result for any business. Considering the current market situation, it is likely to remain this way.

As a result, mining with one or several GPUs brings about 70% of return on investment as opposed to 5% of annual percentage rate for staking. It is clear that graphics cards are highly valued nowadays, so it makes a lot of sense to start mining Ethereum or other coins. We recommend mining in the 2Miners pool.

The main advantage is that you can always switch graphics cards between different cryptocurrencies or sell them. Plus, a lot of miners bought their mining equipment and paid it off long ago. So if you dedicate enough time to it, cryptocurrency mining can and will bring you money.

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The End of Traditional ETH Mining




Ethereum’s London upgrade will end traditional ETH mining, a former Monero developer is arrested on non-crypto charges, and crypto debate hits the floor of the US Senate on Capitol Hill. These stories and more this week in crypto.

Ethereum’s price has surged over the past few days following a recent upgrade that analysts have codenamed “London.” The upgrade is slated to make the Ethereum network more efficient and will purportedly bring it closer to a proof-of-stake model, which will allow holders to garner profits on the assets they already own.

The US Senate faced pushback from the crypto community when it introduced a section into its proposed infrastructure bill that would clamp down on underreported digital asset tax liability. At issue is ambiguous language as to reporting requirements for developers and miners, and whether they would have to collect and report information on users as a ‘broker.’

Former maintainer of the anonymous Monero cryptocurrency Riccardo Spagni has been arrested on fraud charges pertaining to events that occurred between 2009 and 2011 – before he joined the Monero community. Spagni, who is known in online forums and platforms as ‘FluffyPony’, is currently in the custody of the U.S. Marshals Service and will be held without bail until his extradition to South Africa.

Bitcoin SV—a cryptocurrency that emerged following a bitcoin cash hard fork—has been victimized by a 51% attack that caused the asset’s price to fall. The attack allegedly occurred at the hands of miners when three separate blockchains were created causing several units of BSV to be double spent.

The Nasdaq-listed cryptocurrency exchange Coinbase has enabled crypto buys with Apple Pay, and instant cashouts of up to $100,000 per transaction. While the Apple Pay option has been available to Coinbase users since June, it required users to have a Coinbase-branded debit card, but now that workaround is no longer needed with the update.

Fidelity Investments has bought a 7 percent stake in Marathon Digital Holdings, one of North America’s biggest and most prominent crypto mining firms. Over the past year, shares in Marathon have surged by more than 660 percent, suggesting that Fidelity joins the growing trend among investors of gaining exposure to the crypto industry through traditional securities as well.

Melanion Capital—an asset management firm in Paris—has become the first company of its kind to launch a bitcoin-based exchange-traded fund (ETF) designed to track the price of bitcoin. The product will be offered to investors in the European Union (EU) and will track 30 stocks with a high correlation with bitcoin’s price.

Popular sandwich shop Quiznos has partnered with Bakkt—an institutional crypto trading platform—to allow customers to pay for food with bitcoin. Several stores in high-traffic areas will be accepting crypto payments beginning in mid-August. The move is part of a pilot program that, if successful, could see all U.S. based Quiznos accepting crypto by the end of 2021.



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Wyoming Aiming 5% Bitcoin Mining Hashrate



Wyoming is on a mission to house 5% of the U.S. Bitcoin mining hashrate by the next halvening in May 2024. This goes hand-in-hand with Wyoming’s strengths and aligns well with economic development and job creation goals.

For context, Wyoming has the lowest population density in the lower 48 U.S. states at six people per square mile (neighboring Colorado houses 56 people per square mile). Wyoming also has a difficult time retaining recent graduates because their ambitions for careers and salaries often don’t match what the rural Wyoming job market is currently offering, compared to major cities like Seattle and Denver.





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America and the Metaverse – Helena Bitcoin Mining


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This episode is sponsored by NYDIG.

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On this week’s “Long Reads Sunday,” NLW draws from two threads by @punk6529 on Twitter:

See also: ‘Crypto-States’ Will Compete With Corporates in the Metaverse

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Dark Crazed Cap” by Isaac Joel. Image credit: Craig Hastings/Moment/Getty Images, modified by CoinDesk.





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Chinese Middle School Principals Expelled For Mining Ethereum (ETH) In School


Chinese Middle School Principals Expelled For Mining Ethereum (ETH) In School

Two employees at a Chinese school, the principal and vice-principal, have reportedly been dismissed from their duties for mining Ether (ETH) on school property using the institution’s electricity and facilities.

The two principals are said to have secretly installed mining rigs at Puman Middle School in China’s Chenzhou, Hunan province, stealing the school’s power to mine the cryptocurrency.

Loud noise throughout school

Hong Kong-based news outlet HK01 reported on November 7, 2018, that trouble began when the school community began to complain about the increasingly higher levels of noise from the institution’s computers.

Slowing internet network

Apart from the higher than usual noise levels experienced day and night, including during school holidays, teachers also reported that the institution’s IT network had gradually and notably slowed.

Surging electricity costs

Also worrying was the school’s electricity consumption that had more or less doubled in recent months, beginning in early July as noted by the school’s general manager Lei Mou.

Approached for an explanation, the school’s leaders seemingly brushed it aside, saying that the noise and spiking energy consumption was due to excessive use of air conditioners.

Busted – teachers discover ETH miners

However, further investigations led to the discovery of mining rigs installed in one of the school’s classrooms. More information led to the revelation that it was the school principal, Lei Hua, and his deputy Wang Zhipeng, that had installed the mining machines.

The two had together set up a mining station comprising nine computers, all valued at around $7,000 and that they had been mining ethereum for over three months.

According to HK01, the principal originally thought to place the miners in the school’s dormitory. However, given that the output of the original set of ETH miners was too low, they decided to expand the operation, requiring a bigger room.

Expulsion and released from duties

The news outlet further reports that authorities have expelled the principal and had him relinquish his position both as the school’s principal and the Communist Party local branch secretary.

The deputy principal was warned, while a local disciplinary commission collected the monetary penalties imposed on the two principals.

Common crime

Cases of unauthorized use of institutional facilities or power supply to mine cryptocurrency have been on the rise. In 2017, authorities apprehended a former Federal Reserve employee accused of mining Bitcoin using servers at the U.S central bank. He was fined $5,000.

Earlier this year, Florida police arrested an employee of the state’s Department of Citrus for mining crypto using official computers.

Still in March this year, the office of the attorney general in the state of Louisiana said it had initiated a probe on a group of former workers suspected to have used facilities at the office to mine digital assets.

In October, a Chinese man was sentenced to three-and-a-half years in prison and fined for stealing electricity from a Railway station to mine Bitcoin.



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Innovative Mining Protocol Concludes a $2 Million Fundraise Led by Exnetwork Capital and Oracles Investment Group


Leading Venture funds including Exnetwork Capital, CSP DAO, STC Capital, Oracles Investment Group, MoonBoots, Leos Ventures, Global Key Investment, and Aza Groups, have successfully led a funding round for MINE Network. A group of strategic partners including Skyrim Finance, Kylin Network, Charged Particles, and FOMO Chronicles also supported the round, to help MINE Network raise $2 million.

Reportedly, it was an oversubscribed private sale with unimaginable responses from some of the industry’s most influential and trusted names. The project has attracted a slew of high-net-worth individuals who are trusting the project’s vision to be a premier solution provider in the crypto mining industry.

With the successful funding and IDO launch, MINE Network is ready to kickstart the journey of creating its eco-conscious, multi-chain mining protocol until it attains its fullest potential. MINE Network is enthusiastic about revolutionizing the very core of the crypto sphere and with immense support from the blockchain community.

Standardizing Mining Power

As the first decentralized standard hashrate token protocol solving mining problems, MINE Network is geared towards standardizing mining power. MINE will set up the mining power standard for a list of mining projects so that the mining power. This applies to mining powers from MINE and other mining pools, so they can be easily tokenized and clearly identified.

Growing cloud mining pools have curbed and lowered certain barriers impeding entries in crypto mining. However, there are a good number of cloud mining pools with no proper standard which can inhibit the rapid growth of the sector. MINE Network’s goal to standardize mining power is targeted at offering scaling potential to the industry.

MINE Network’s protocol is out to develop the right standards for numerous mining powers and also the minimum standardized hashrate unit. With this, the MINE Network mining pool will be an open and accessible tokenized market. As MINE aims at this problem of low standards, it is positioned to bring the mining ecosystem to a completely new level of accepted standards including energy consumption ratio, types of specific mining equipment as well as their numbers.

Building A Decentralized Community With Complete Autonomy

MINE Network as a project seeks to build a decentralized community with complete autonomy. This is a major factor in dealing with credibility issues facing the mining industry. MINE aims to act as a fully transparent decentralized autonomous organization. For every growing mining project, the MINE Network DAO will be adjusted to suit all stages for the community to be developed without hindrances. As the project matures, the MINE Network DAO increases. The primary objective is to grow into a decentralized protocol with full community autonomy.

As it works towards becoming a DAO, MINE Network is encouraging the willingness of the community to participate in governance by lowering participation thresholds and increasing incentives.

MINE Network is building a community with no hierarchical management or central governance. It will have a plethora of beneficial purposes. Miners on the platform will enjoy a self-sustaining economy with a better distribution of mining power for an even more equitable space.



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Kazakhstan could turn to nuclear power to keep its Bitcoin mining industry running


Bybit

As per Nikkei Asia, Kazakhstan’s president Kassym-Jomart Tokayev has suggested building a nuclear plant to sustain Bitcoin mining in a bid to support the profitable crypto mining activities in the nation 

“Looking into the future, we will have to make an unpopular decision about the construction of a nuclear power plant,” said Tokayev in a bankers meeting held in Almaty last Friday.

Tokayev first discussed the idea of building a nuclear power plant with Russia’s President Vladimir Putin in April 2019. However, the idea could not be acknowledged following the heavy criticism that it received back then. 

The critics were quick to respond, referring to the nuclear plant idea as an “ecological disaster” in the making. Despite growing unease among Kazakh’s citizens, President Tokayev is keen on pursuing the idea and have addressed the apprehension of citizens regarding constructing a nuclear plant as “inappropriate” 

Kazakhstan’s looming power crisis

Kazakhstan boasts low-cost electricity prices that have transformed the country into a popular crypto mining spot. When China imposed a heavy crackdown on Bitcoin mining activities in its country, a large group of ousted miners took refuge in Kazakhstan, where they could mine crypto without excessive government intervention and could make use of its easily accessible and cheap electricity to mine Bitcoin. 

To fuel the growing demand for Bitcoin mining, the country’s energy supply had to double over to accommodate such a large influx of crypto miners.  

According to Cambridge Bitcoin Electricity Consumption Index’s IP data, Kazakhstan controls approximately 35% of Bitcoin mining power, which is second to that of the United States. 

Due to this sudden increase in crypto mining activities in Kazakhstan, the nation is now facing a heavy power crisis where its citizens are now experiencing frequent power outbreaks. 

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CMF North America: The Current State and Future of the Cryptocurrency Mining Industry


On April 13, Bitmain held the Crypto Mining Forum (CMF) online for the North American Region. Antminer, AntPool, along with key customers and strategic partners all participated in the forum to deliver solid speeches and panels, aiming at bringing together the top leading mining companies’ insights on the current state and the future development of the cryptocurrency mining industry in the region.

Bitmain, Antminer, and AntPool Continues to Empower Users
and Mining Industry

The cryptocurrency mining industry has entered a new stage of
maturity and stability. Since Bitmain’s establishment in 2013, the company
has spared no efforts to develop advanced technologies and innovations to move
the industry forward.

Main Speakers

At the forum, Irene Gao, Sales Director of NSCA, Antminer, announced the new global sales strategy from Bitmain. The company will adopt an ordering method with insured clauses for users. To better meet the growing market needs for mining hardware, Antminer recently introduced an annual batch order purchase for the Antminer S19j Pro. Featuring a strong hash rate at 100 TH/s and a low energy efficiency ratio of 29.5 J/TH, the miner can truly bring a long-term investment value to customers.

Eric Wang, North American Operations Manager at AntPool, introduced the mining pool development. According to Eric, in recent years, he has witnessed a significant hash rate growth in the region and forecasts that the region will continue to grow.

To better empower miners, Bitmain announced at the CMF, the
company will develop a global mining map to assist customers in finding the
best/new locations for new facilities set-up. Besides, Bitmain will establish
more cooperative mining centers in North America to empower the industry to
flourish and promised to meet the goal of repairing miners in the region to achieve
a turnaround time (TAT) of 3 days. As the world’s leading cryptocurrency mining
platform, AntPool will continue to provide miners with more easy-to-use, safe
and efficient services, bringing rich and transparent income for miners.

Foundry: Hardware Becomes the Focus of Bitcoin Mining
Race

Michael Colyer, CEO of Foundry, the cryptocurrency mining subsidiary of Digital Currency Group (DCG), shared his observations and predictions on the current mining market. He said that due to the continuous advancement of Bitcoin mining technology, the mining industry’s demand for chips is competing with other cutting-edge technology companies such as Samsung and Apple, resulting in insufficient global chip supply and a situation of grabbing chip resources. Meanwhile, institutional miners have entered the game, making it harder for people to get miners, and resulting in more competition as intuitions have strong access to investments.

The specialty of the North American market is that companies have
access to capital markets. Therefore, more and more companies are planned to go
public in the next six months. Moreover, many energy companies have also begun
to investigate the Bitcoin market, considering its huge growth potential and
will be become more active over time.

In terms of the industry opportunity, Michael pointed out mining hardware
will be a great investment option, as most of the mining products can continue
to operate for 4-5 years, which will bring a long-term investment value to
miners.

State of Mining
2021: Large Scale Operation with Green Development

Panel Discussion 1 Speakers

Moderated by BitOoda CEO Tim Kelly, Core Scientific Chief Customer Success
Officer Russell Cann, Greenidge Chief Mining Officer Greg Ohanessian, Crusoe
Energy CEO & Co-founder Chase Lochmiller and Crusoe Energy President & Co-founder
Cully Cavness joined the panel themed in the State of Mining in 2021.

At the panel, discussers pointed out that as more and more users and institutions have joined the camp, the mining industry is no longer as fragmented and rough as the “wild west”, but it is now moving forward into a stage of institutional miners at a large scale. At present, larger financialization is happening in the space, which increases ways to finance the industry such as debt financing.

Moreover, mining companies pay more attention to relevant regulations and will also increase investment in environmental friendliness. The panel highlights that driving green energy for mining will bring more opportunities and will be crucial for the future.

In the United States, there is an interrelationship between energy and mining. Experts predict that the use of renewable energy and innovative technologies will become a new trend in the development of the mining industry. On one hand, more miners will attach more importance to the relations between mining and sustainable energy and will use renewable energy to promote the reduction of power consumption. On the other hand, the development and application of immersion mining technology is a future trend to keep an eye out for, which can effectively improve energy efficiency ratio of mining hardware, prolonging the life of miners, and provide mining companies with opportunities to open in better mining locations since favorable mining locations are usually in harsh environments.

Energy suppliers also starting to understand the mining industry’s demands,
providing more resources and services for large-scale digital mining. Hosting
service is also growing, as it comes with advantages such as low electricity
prices and professional management.

In the next few months, miners should consider that more hash rate will be
added once mining companies receive their future orders, which can affect the
profitability of mining. Altcoins, which provide different innovations, can be
considered, nevertheless, Bitcoin will be the core cryptocurrency from a long-term
perspective.

Trends & Innovation: New Business Model and the Influx of
Institutions

Panel Discussion 2 Speakers

Gemini Asia Pacific Business Development Bureau
Director Eugene Ng, Atlas Mining Founder Raymond Yuan, DMG CEO Sheldon Bennett,
Clean Spark CEO Zachary Bradford, and Luxor Co-founder & CFO Ethan Vera
discussed and predicted the mining trend and innovations at the second panel.

The panel pointed out the new trends in the mining
industry. First, the adoption of cooling system leads the new trends, as
immersion cooling provides the same hash rate with less power consumption.  Far more important, driven by the vigorous
development of the Bitcoin mining industry along with multiple favorable
factors, a large number of new investment institutions have entered the market,
bringing in a new business model, i.e., the financialization of hash rate.

The influx of investors and institutions is just
the beginning. When more speculators participate in the cryptocurrency mining field
on a large scale, it will open the door for other digital currencies, and the
cryptocurrency market will usher in more opportunities. In terms of
technological innovation and application, topics were discussed at the panel around
software upgrades, financial tools, and energy improvements to reduce mining
costs.

The North American session of the Cryptocurrency Mining Forum was successfully concluded. The CMF Forum is a series of global events held by Bitmain, aiming to build an information-sharing platform for the global mining industry’s discussion, prediction, and prosperity. The forum has been successfully held in Miami, Toronto, Kuala Lumpur, and in other cities before, which has gained extensive support and large popularity from Bitmain’s customers, partners, and miners around the world. Soon, the CMF Forum will set sail again in Europe (online), let us look forward to more exciting insights brought by the European section!

Video link to CMF North America

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Mining Performance of Asus ROG Strix GeForce RTX 3060 OC Edition



26
Feb
2021

The new Nvidia GeForce RTX 3060 video cards are here and we managed to buy one quickly while there was some stock left to do some mining benchmarks and tests. We already know that mining performance for the RTX 3060 is limited for Ethereum, but what else can you mine with the full performance is something that we also wanted to find out for sure. As we have predicted availability and pricing of the RTX 3060 is off the charts as people expected these GPUs to be the sweet spot for mining Ethereum – high hashrate and low price. Neither of these did turn out to be true however and stock availability is low, so buying even just one of these new GPUs was pretty hard and we had to pre-order it and buy it bundled with a motherboard just to get our hands on it for testing.

Specifications wise – nothing unexpected. We already knew what to expect from the RTX 3060 GPUs in terms of hardware and GPU and VRAM specs. We also though we knew what to expect from them in terms of performance, but then Nvidia suddenly surprised us with their plans a couple of days ago. And although they are saying that they want to have the RTX 3060 available for gamers, what they are meaning is that they want to sell their new Nvidia CMP HX Dedicated Crypto Mining GPUs to miners instead of RTX 3060. In the end they will probably not succeed very well with either for a number of reasons…

When we run Phoenixminer on the ASUS RTX 3060 GPU with 70% TDP and +1000 MHz video memory in MSI Afterburner we are getting almost 46 MH/s hashrate for Ethereum, however the protective mechanism quickly kicks in and drops that to about 23-24 MH/s. Mining Ehtereum with 46 MH/s at just about 120W of power usage is probably some miner’s wet dream for a mining GPU, but unfortunately that is not going to happen at least for the moment. And it is not only affecting Ethereum mining, Ethereum Classic also gets the half hashrate reduction (it is very similar in terms of algorithm), even Vertcoin’s VertHash algorithm is affected and possibly other memory-intensive algorithms as well.

Affected Algorithms Performance:
– Ethereum – Ethash algorithm – 45 -> 23 MH/s
– VertCoin – Verthash algorithm – 850 -> 370 KH/s
– Ethereum Classic – Etchash algorithm – 47 -> 25 MH/s

All is not lost however as there are some profitable crypto algorithms that are not affected by the forced half hashrate for mining from Nvidia, so the RTX 3060 is still usable and performing quite well in some other popular algorithms…

Unaffected Algorithms Performance:
– Ravencoin – KAWPOW algorithm – 22 MH/s
– Veil – ProgPoW algorithm – 20.8 MH/s
– BitCash – X25X algorithm – 4.2 MH/s
– Conflux – Octopus algorithm – 42 MH/s
– Beam – BeamHashIII algorithm – 22.5 MH/s
– Aeternity – CuckooCycle algorithm – 6.6 G/s
– Grin – Cuckatoo32 algorithm – 0.39 G/s
– ZEL – Zelhash algorithm – 33.6 Sol/s
– Firo (XZC) – MTP algorithm – 2.4 MH/s

So, while the RTX 3060 may not be the best option for Ethereum mining, it can still perform quite well in some other mining algorithms, so not a total waste of money as far as crypto mining is concerned. If you are only focusing on Ethereum mining however, then you might want to think twice and leave the RTX 3060 to other miners or gamers instead.

What performance other Nvidia RTX 30 Series GPU deliver for Ethereum…

  • Publihsed in: Mining Hardware|Tests and Reviews
  • Related tags: Asus ROG Strix GeForce RTX 3060 OC Edition, Dedicated GPUs for Professional Crypto Mining, GeForce RTX 3060, GeForce RTX 3060 ETH, GeForce RTX 3060 ETH hashrate, GeForce RTX 3060 ETH mining, GeForce RTX 3060 ETH performance, GeForce RTX 3060 Ethash, GeForce RTX 3060 Ethash hashrate, GeForce RTX 3060 Ethereum, GeForce RTX 3060 Ethereum hashrate, GeForce RTX 3060 half hashrate, GeForce RTX 3060 limited hashrate, GeForce RTX 3060 reduced hashrate, Nvidia, Nvidia CMP, Nvidia CMP HX, Nvidia GeForce RTX 3060, Nvidia mining GPU, Nvidia RTX 3060, RTX 3060, RTX 3060 BeamHashIII, RTX 3060 KAWPOW, RTX 3060 ProgPoW, RTX 3060 Verthash, RTX 3060 Zelhash

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How to Get Payouts for Ethereum Mining without Fees


Spoiler: Now you can get daily payouts from the Ethereum pool starting from $1.75 without fees.

Ethereum Miners Are Getting Less Profit after the London Upgrade

For the past two months, there have been constant issues with transactions after the London upgrade in the Ethereum network. Transaction fees are too high, and transactions are often late.

Main Issue: Say, a miner with one GPU earns $3.00 per day. To get his monthly payout of $90, he must pay $7.50, which is almost 10% of his profit. Not only It’s too much, but many miners also want to get payouts each week or even more often.

The Ethereum network has had an issue with high transaction fees between addresses for a long time. It didn’t concern mining pools before: they could decide for themselves which transactions and fees to include in their blocks, and which to exclude. Now mining pools don’t have an advantage. They are forced to send payouts to miners at market price.

At the time of writing, the Ethereum transaction fee is $10 per transaction.

It happens due to the Ethereum network load. The London upgrade was supposed to solve this issue, but it only made the situation worse. When there are many transactions in line, the base gas price rises. You can read more about the “gas” concept in the dedicated article: What is Gas in Ethereum? Ethereum Transaction Fees.

In the case of smart contracts, widely used by cryptocurrency exchanges and online wallet providers, each transaction costs even more: up to $20–$30.

As a mining pool, all we can do is to limit the max gas price we pay to send payouts so that our miners don’t waste a significant part of their profits on payout fees. Currently, our max gas price is 100 gwei, so a miner pays no more than $7.60 to send a payout to a standard address.

Delayed Payouts to Ethereum Miners

High transaction fees in Ethereum lead to the second problem: payouts arrive late. They are not always delayed: only on those days when the Ethereum network is overloaded. Sadly, the network is overloaded almost non-stop, and we don’t think it is going to change for the better. The number of active cryptocurrency users is constantly growing.

As a result, it also hurts miners. The pool sends payouts only when the transaction fee reaches an acceptable level: under $7.60 per transaction. The rest of the time miners have to wait for their payouts hoping that the gas price in Ethereum goes down.

Let’s look at last week’s gas price chart. Keep in mind that the pool set a limit of 100 gwei. The chart can be roughly divided into two parts: 3 days to the left (October 2–4) when the pool pays as usual and 4 days to the right (October 5–8) when the pool payments are delayed.

Users complain about it all the time, but what can we do? We can only raise the gas limit even more. How much would a transaction cost then? $20? $30? It’s unacceptable. Most miners won’t appreciate such a decision and will have to look for other sources of income. They can’t just change the pool for mining, as all the pools are having the same problem.

2Miners Solves the Payout Problems

You are a small miner with one graphics card and you want to get paid today, right away, without paying insane Ethereum Network fees. How can you do it?

A logical thing to do is to get payouts through another cryptocurrency network that doesn’t have all these issues. So we studied transaction fees and operation speed of popular coins. Nano (ticker: NANO) turned out to be the most suitable cryptocurrency. What is this coin?

At the time of writing, Nano ranks 113th among all cryptocurrencies by market cap.

Nano’s main advantage is instant and completely free transactions.

Nano is traded on many cryptocurrency exchanges. The daily trading volume is $15+ million. Once the pool pays you, you can exchange Nano at any time for any cryptocurrency (even Ethereum). In the end, you will have even more Ethereum this way than by getting paid in Ethereum directly. Pool payouts in Nano cost you nothing.

Our Ethereum pool can now process the payouts in NANO.

We understand that you might be surprised by our decision, as you don’t trust this coin. That is why we came up with another solution: payouts in Bitcoin. What can be better? Unlike Nano, Bitcoin requires a transaction fee, but it’s much lower than Ethereum’s.

Free Payouts in Nano for Ethereum miners

Now you can get payouts in the Ethereum pool for free every day even if you have only one graphics card. Also, Nicehash and other mining rental platforms are supported.

How does it work?

Once the payout threshold set by a miner is reached, the pool automatically exchanges ETH earned by the miner to NANO. We currently use such cryptocurrency exchanges as Kraken and Binance. Cryptocurrencies are always exchanged at market price.

Say, your payout threshold is 0.0005 ETH (approx. $1.75). You accumulate 0.0006 ETH ($2.1), which sets the payout process in motion. The pool sends your 0.0006 ETH ($2.1) and coins of other miners to exchange and converts them to NANO at market price. After the pool gets money in NANO, it issues payouts to each miner in NANO. As a result, you get the equivalent of 0.0006 ETH ($2.1) in Nano to your wallet without losing a penny.

At first, we didn’t want to set a payout threshold for payments in NANO. Say, you earn 0.0001 NANO in a day (less than $0.0005 at the current exchange rate). We know that many users mine directly to an exchange. Exchanges often have a deposit threshold. For example, a minimum deposit on Kraken is 0.1 NANO. That is why we set a threshold for payouts in NANO in the pool: the equivalent of 0.0005 ETH (~$1.75). Even the weakest GPU that mines Ethereum can accumulate the required minimum in one day.

Settings

  1. Get a desktop or mobile NANO wallet or generate a NANO address on a cryptocurrency exchange. The best wallet is Natrium. The best exchanges are Binance, Kraken, KuCoin.
  2. Replace your ETH address with NANO wallet address in the miner settings. A sample bat file for mining with Gminer
    miner.exe --algo ethash --server eth.2miners.com:2020 --user nano_3gyf7qnmkp4puzghqks8pn1rfxsubhpya4m5hohdeqkejdjtpwd4tkfxz6a9.RIG_ID
  3. Once mining starts, you can go to your Statistics page by entering your wallet address in the search field on 2Miners.com. Your address is also shown on the list of all pool miners along with regular ETH addresses. For example nano_3oxxxag4jj883zt7bdsdhym8qagsbk4rxw48chmy11xgi4mfxqda7o6ro1ct. You can set a payout threshold on your Stats page. You don’t have to do it though. NANO transactions are free, so you can get paid as often as you like without any losses.

When Nano Payouts Are Processed

Payouts are processed once a day at 12:00 UTC. Payouts are not instant. Considering that your ETH must be transferred to an exchange, exchanged, and then transferred back, the whole process usually takes no more than two hours allowing for small delays. We plan to process the payouts more than once a day in the future.

Fees

When miners get paid in NANO, they don’t pay any fees at all.

The whole process is completely transparent. After the pool issues a payout (and even during the payout process), you can monitor the operation status of an exchange system, check an exchange rate, track your money from the moment ETH is sent to exchange to the moment you get NANO. The pool doesn’t retain any additional fees: all exchanged money is paid out to miners in full.

If you prefer the video format check the “Get DAILY PAYOUTS with NO FEE mining Ethereum” by Sebs FinTech Channel.

Is Bitcoin Mining on GPU Possible?

It sounds surreal: everybody knows that you can only mine Bitcoin on ASICs. We made Bitcoin mining on GPU a reality. You can mine Ethereum in the 2Miners pool and get paid in BTC.

Once the payout threshold set by a miner is reached, the pool automatically exchanges ETH earned by the miner to BTC. We currently use such cryptocurrency exchanges as Kraken and Binance. Cryptocurrencies are always exchanged at market price.

Settings

  1. Get a desktop or mobile BTC wallet or generate a BTC address on a cryptocurrency exchange. If you use Binance choose the BTC (SegWit) chain.
  2. Replace your ETH address with BTC wallet address in the miner settings. A sample bat file for mining with Gminer
    miner.exe --algo ethash --server eth.2miners.com:2020 --user 1HyyZxZAQjZenHf9TGsdUY9cxvMpbGjGBz.RIG_ID
  3. Once mining starts, you can go to your Statistics page by entering your wallet address in the search field on 2Miners.com. Your address is also shown on the list of all pool miners along with regular ETH addresses. For example bc1qrlpjqp2vvaan0ferh44z7tsevqzkcxrugm9g5n. You can set a payout threshold on your Statistics page. It is always set in ETH. You can choose any amount from 0.005 ETH (approx. $17.5) to 10 ETH.

When Bitcoins Payouts Are Processed

Payouts are issued once a day at 12:00 UTC. Payouts are not instant. The whole process usually takes no more than two hours allowing for small delays (like waiting for exchanged BTC withdrawn from an exchange). We plan to process the payouts more than once a day in the future.

Fees

When miners get payouts from our payment gateway, they pay only a part of the transaction fee in the Bitcoin network. We group all miner payouts in one transaction. The transaction expenses are then divided between the miners in equal parts. That is why the current fee for each miner is less than $0.2

All other fees are covered by the pool, including the fee for sending ETH to an exchange and the fee for withdrawing BTC from an exchange. If you don’t want to pay any fees at all, consider mining ETH and receiving the payouts in NANO.

The whole process is completely transparent. After the pool issues a payout (and even during the payout process), you can monitor the operation status of an exchange system, check an exchange rate, track your money from the moment ETH is sent to exchange to the moment you get BTC. The pool doesn’t retain any additional fees: all exchanged money is paid out to miners in full.

Now you can mine BTC on video cards by simply connecting to the 2Miners Ethereum pool with your BTC address instead of Ethereum address. The pool will take care of all conversions with minimal fees.

How to Set Up Popular Mining Operating Systems for BTC and NANO Payments

Let’s check the settings for popular mining Linux-based operating systems. The principle is simple: when you enter your wallet address you need to use your Bitcoin or NANO address.

RaveOS Settings

Please find below the screenshot of RaveOS settings for NANO. We remind you that RaveOS is absolutely free if you mine in 2Miners pool.

RaveOS NANO settings

minerstat Settings

On minerstat you can set up mining of ETH in the worker’s config. First, select your preferred mining client and then set up the simple configuration:

  • Coin: ETH
  • Pool: 2Miners stratum address tag. You can add it on the go, the address is: eth.2miners.com:2020
  • Wallet: Your BTC or NANO wallet address.
  • Password: minerstat

minerstat_settings

HiveOS Settings

If you use HiveOS select the 2Miners Ethereum pool Flight Sheet. Please pay attention that when you add the wallet address you select the ETH Coin. The address itself could be not only ETH but also BTC or NANO if you mine in 2Miners pool. Check an example of the HiveOS settings for NANO payouts below.

HiveOS NANO settings

mmpOS Settings

  1. Create the wallet to be assigned to the pool. Use Ethereum as the base currency and add your BTC or NANO wallet address.
    mmpos_btc_wallet
  2. Create the pool and select the wallet you added previously. Add `eth.2miners.com` as hostname and port `2020`. No need to do anything else, click the “Create pool” button.
    mmpos_btc_pool
  3. Create the miner profile with the above-added pool. Name your miner profile as you like and choose your desired miner.
  4. Select the target rig, click “Switch miner profile” button, and check your newly created profile. Make sure you’ve deselected other profiles that this rig had assigned previously. In a few minutes, your settings will be applied and mining will start.

Conclusion: Cryptocurrency Auto-Exchange in Mining

If you mine Ethereum in the 2Miners pool, you can choose one of three cryptocurrencies for payouts: Ethereum, Bitcoin, or Nano. The minimum payout in Ethereum and Bitcoin is 0.005 ETH (~$18) and in Nano – 0.0005 ETH (~$1.80).

Payouts in ETH are issued within two hours after you reach your payout threshold. Payouts in BTC and NANO are issued once a day at 12:00 UTC.

No special setup is needed to use auto-exchange. Just add the wallet address of the cryptocurrency in which you want to get paid (ETH, BTC, or NANO) to your miner settings.

As of now, auto-exchange works only in 2Miners Ethereum pools (PPLNS and SOLO). We might also add auto-exchange for other cryptocurrencies in our pools in the future. We are looking forward to your feedback in our Telegram chat and on Twitter. We want our users to get payouts for cryptocurrency mining as easily as possible. Thank you for choosing us!

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