Book Image

Bitcoin Essentials

By : Albert Szmigielski
Book Image

Bitcoin Essentials

By: Albert 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 (15 chapters)
Bitcoin Essentials
About the Author
About the Reviewer

Chapter 6. Solo Versus Pool Mining

In this chapter, we will compare solo mining and pool mining. In the early days of Bitcoin mining, all mining was done solo; it was only later that mining pools emerged where miners pooled their hashing power together to ensure smoother and more predictable earnings. Today, most of the individual mining is done in pools. Only large, professional mining operations mine solo. We will guide you through the process of making an informed decision on whether to mine solo or to join a pool. Furthermore, we will summarize what characteristics are desirable in a pool, so that your decision of which pool to join will be easier to make. We will also go through the details of setting up your mining software and wallets, for both pool and solo mining.

We will delve into the following topics:

  • Solo mining setup

  • Pool mining setup

  • Pool mining discussion

  • Comparison of pool mining versus solo mining

  • 51% attack against the Bitcoin network