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Thread: Cryptocurrency Mining

  1. #11
    Mithros's Avatar
    Join Date
    May 2011
    Last Seen
    Today @ 02:45 PM

    Re: Cryptocurrency Mining

    Quote Originally Posted by Fenton View Post
    When Im not posting about all things Politics here at DP, Im either sitting at my test bench using my signal generator and oscilloscope to signal trace through old amplifier and pedal circuits, repairing and or building different analog and digital circuits for a variety of applications, or building gaming computers.

    I just built one for my oldest son this last weekend, and while we were working on it he asked if it could be used for " mining bitcoin "

    Mining what ???!! Honestly, I have never heard of such a thing

    I told him I would look into it and wow, I had no idea
    We have quite a few really sharp posters with IT backgrounds, so please correct me if I'm wrong

    Bitcoin miners use specialized rigs to audit past crypotcurency transactions arranged in sequential blocks in a public ledger known as a blockchain.

    Once a new block is verified, its recognized from that point on in the blockchain, and the process to discover the new block starts over.
    The bitcoin miner responsible is awarded 12.5 newly minted bitcoin for his troubles.
    This is the ONLY way new bitcoin can be minted

    Bitcoin blocks are encrypted using SHA-256 cryptographic algorithms which produces a 256 hexadecimal number or signature for each block chain.

    Bitcoin mining rigs verify new blocks which are 1MB in size by solving a complex mathematical puzzle, which is to find a number that when combined with data in the block and then passed through a hash function produces a desired resust or " hash " within the specified range to discover the new block.

    This number is called a " Nonce", and is a integer between 0 and 4,294,967,296

    Typical mining rigs are comprised of multiple high end video cards. So why use GPUs and not CPUs ?

    CPUs can have 4 or more cores executing 1 x 32 bit instruction per clock cycle while GPUs like the Radeon 5970 can have up to 3200 cores or ALUs, or " shaders " executing 32 bit instructions per clock cycle.

    Multiple video cards are set up to run gigacycles of calculations per second in parallel giving the bitcoin miner a advantage over other miners who are all competing to be the next to verify a new block in the blockchain ledger.

    I told my son that technically, yes, his new rig could be used to mine cryptocurrency, but is ill suited and to not waste his time
    That's a pretty good take..

    I'd add that the basic idea behind blockchain is to "solve" the double spending problem without the need for a centralized system. Ie.. I own a coin. I simultaneously agree to sell it to two different people. Now both people think they bought the same coin. Someone or something needs to decide who actually owns the coin.

    Double-Spending Explained - Mycryptopedia
    The idea behind blockchain is verified through a concept called "proof of work". All transactions are kept in a public ledger that everyone has access to. If you run on the bitcoin network you literally have to download every single transaction ever made to start.

    When you request a transaction it goes into a "block" of transaction. This potential "block" on the "chain" is sent to miners who must solve a decryption problem. ie they need to compute a hash which essentially joins the new block to the last block on the chain. When they solve the problem they submit it to others. Because it's cryptography, solving a has is very slow, but checking it is very fast. This means that a successful hash will propagate through the network very quickly. Once it has propagated "far" enough, the probability of it remaining valid is high enough to assume that it went through.

    If your son is at all interested, he should look into this:
    Mining Calculator Bitcoin, Ethereum, Litecoin, Dash and Monero

    Modern mining is a tradeoff between the cost of electricity/computing and mining profits.

  2. #12
    Outer space potato man

    Join Date
    Feb 2010
    Last Seen
    Today @ 03:38 PM

    Re: Cryptocurrency Mining

    Quote Originally Posted by Mr Person View Post
    Global banking system says hello.

    Whether we're talking hard currency (based on the idea that a shiny metal has some kind of inherent worth) or soft currency, it's all a shell game anyway. But if we all silently agree to pretend the coins or the numbers are worth something, it works. Reality from unreality.
    Yes. All currency is “fiat currency.” The entire concept rests upon agreed value of the currency.

    But unlike bitcoin, real currencies are actually capable of functioning as a currency.
    “personal attorney” to Individual-1, who at that point had become the President of the United States
    Quote Originally Posted by apdst View Post
    I don't know who [Individual-1] is and neither do you.

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