Solo Mining: A Brief Review of Pros and Cons

solo mining

Mining has been a highly discussed type of earnings in the cryptocurrency industry in the last couple of years. This concept includes not one or even two types of coin mining. In this article we will talk about SOLO mining, learn about its strengths and weaknesses, and also understand whether it is worth doing.

Contents:
(please, click the topic to scroll down to it)

  1. What is solo mining?
  2. Advantages and disadvantages of this type of mining
  3. What is better: solo or a pool?
  4. Conclusion

1. What is solo mining?

Unfortunately, it is impossible to give a 100% recommendation, which kind of cryptocurrency mining is the most profitable. Like the entire cryptocurrency market, the process of mining is very unstable, and the profit depends on a multitude of factors.

So, solo mining is an exceptionally independent search for blocks and getting a full reward for it. If you choose the direction of solo mining, then your equipment will independently collect transactions in the block, sign them and search for nonce value.

2. Advantages and disadvantages of this type of mining

The undoubted advantage of solo mining without a pool is getting all the reward in one hand. If your equipment finds the required value of the block, you will get the whole profit, for example, it is now 12.5 BTC in the Bitcoin network. This is a fairly large amount of cash, even given the current drawdown rate.

But, perhaps, this is the only advantage of this kind of mining, since it has two sides of the coin. The most offensive and unpleasant thing in this whole story is the chance that someone else get all of your money. For example, your computing equipment may be working on a certain block for a month, but another miner will find the necessary value by “happy” chance. In this case, all the reward will go to him/her, and you will be left with nothing. This possibility directly depends on the computing power of your equipment. Here everything is simple, a more powerful miner is more likely to find this nonce (because of the ability to process more data).

For this reason, the vast majority of small and medium-sized miners work within pools, where all participants receive a stable reward, which corresponds to the computing power of the equipment.

Today, solo mining of Bitcoin or any other high-capitalization coin is not the best idea. The fact is that due to the large number of participants, the complexity of the networks of popular cryptocurrencies has reached an unreal level. The probability of finding the unit alone is close to zero. Let’s give a clear example of the chances of solo mining in the Bitcoin network with a relatively high hash rate (1 Pth/s). To make it more clear, a farm of this capacity will cost about $200k. This is without taking into account the huge bills for electricity and supplies. So, with 95% probability, after 200 days of continuous work, you will be able to find the value of a block and get 12.5 BTC. This is provided that the complexity of the network during this time will not grow or someone else will not find the value of a nonce before you.

100 times more capacity is required to find a new block every day, and this is an investment of millions or even tens of millions of dollars.

3. What is better: solo or a pool?

We all love stability and reliability, if, of course, such concepts are applied correctly to the cryptocurrency industry. But still, it’s much safer to receive new coins every day than to be in a state of uncertainty six months or more, without any guarantee of success. And if you do not have tens of millions of dollars in seed capital, you will be better off joining a mining pool.

Every year the of network complexity of popular cryptocurrencies is growing at a high pace, for example, in 12 months it has increased for:

  • Ethereum by 30 times;
  • Bitcoin by 4 times;
  • Litecoin by 15 times;
  • Dash by 150 times.

Even when the industry was just starting out, the miners saw this trend and realized that it would be simply impossible to mine coins by themselves and decided to combine the equipment capacities with the aim of stable and fair earnings.

4. Conclusion

You can totally engage in solo mining of little-known coins with relatively weak equipment, where the complexity of the network has not yet managed to become prohibitive. But it is worth considering the fact that such cryptocurrencies at the moment are worth hundredths or thousandths of a dollar, so they will not bring big profit in the short term. Of course, if the coin takes off in the future, then you will wake up as a millionaire, but you should not really count on such an outcome.

If you want to earn on solo mining of BTC here and now, you need to invest huge amounts of money. For a more stable and quiet coin mining on an ongoing basis, the vast majority of the miners join pools and combine their powers, and the dividends are divided fairly, according to the personal contribution of each miner.

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Binance Will Add Stablecoin USDC To Its Listing

Recently, one of the major crypto exchanges, Binance, has published a notice which says, Binance will open two new pairs for trading on November 17. Interestingly, those two pairs include a new-comer – USDC – stablecoin backed by Circle.

The trading pairs are USDC/BNB and USDC/BTC; the trading starts at 2018/11/17 03:00 AM (UTC). However, users are already able to deposit stablecoin in advance.

Moreover, Binance wrote there would be a “top-ranking auditing firm” to preserve the transparency of the stablecoin. Every month, the firm is bound to provide data of “the corresponding USDC and USD balances held/issued.

We want to remind you, such crypto exchanges as OKEx, Huobi, BitPay, Coinbase have already listed USDC stablecoin on their listings.

Dollar-Pegged Stablecoins Exceeded the Price Point of $1

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Cryptocurrency Prices Today, November 15: Cryptocurrencies Collapsed in Price

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the Coin360 online platform, Bitcoin (BTC) lost 10.76% over the past 24 hours. The price at the time of writing is $5643 per coin.

Almost all cryptocurrencies absolutely crashed in price:

Bitcoin Cash lost 13.28% over the past 24 hours and costs $447 per coin;

Ripple dropped by 8.94% and is $0.46 in price;

EOS fell by  11.7%, and its price is $4.66;

Litecoin lost 13.45%, and its cost is $42;

Cardano decreased by 14.13%, and its value is $0.061;

Stellar lost 8.24% and is worth $0.23;

IOTA became cheaper by 16.64%, and its cost is $0.48;

Dash dropped by 12.34%, and its price is $142;

Monero decreased by 13.95% and costs $90.

Over the past day, Ethereum lost 12.76%. The cost of the coin is $179.

The total market capitalization dropped significantly to $185 billion. Bitcoin accounts for 53% of the total. In monetary terms, the amount dropped to $98 billion.

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Chinese Miners are Disconnected From the Grid

According to the CNN, due to tax inspection, Chinese establishment have suspended their work.

The Ministry of Public Safety (China) demand that the mining farms,  which are located in the Chinese provinces of Xinjiang and Guizhou, accept the agreement that they will work in accordance with the new, tough rules. The requirements include the denial of services of unregistered  clients.
During the audit,  mining farms were disconnected from the grid, as a result they lost 1 million yuan daily, about 143 700 dollars.

The Tax Inspectorate has already completed the investigation, but the power supply to mining farms still has not been connected.

It should be reminded, we reported earlier that Chinese Middle School Managers were mining Ethereum.

Administartion of Chinese Secondary School Was Mining Ethereum: Details of Crime

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Bank of America Has Officially Patented A System for Saving Crypto Actives for Significant Corporations

One of the major USA banks has been approved the patent for a system of saving crypto assets. The application for the patent describes a method for safekeeping cryptocurrency assets of users of the system. It also stated that the bank will cooperate only with major corporations.

The popularity of using cryptocurrency has turned into a trend that many companies are aiming at. The biggest part of major corporations serves their clients with the help of cryptocurrency. Because of this, there is a need to convert the cryptocurrency into any currency deposit, which has to be placed in a storage.

It is possible to improve the security and safety of deposit funds with the help of single corporate accounts that maintain the cryptocurrency storage.

At the same time, the clients will receive credit funds, the amount of which is equal to the crypto deposit. This concept was introduced by Bank of America.

The patent spelled out a storage system specially designed for the banking system, which processes and stores the secret key. The system is demanding to high throughput of a channel and the amount of calculation capacities.

When required to complete a transaction, the system will provide customers with access to Member’s personal account.

It should be reminded, that previously Bank of America approved the patent for close system private keys, that supports remote management.  

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Linux System Is Affected By A Malicious Crypto Mining Malware: How To Detect It?

Trend Micro, Japanese company specializing in crypto security, published a report on its website stating that they found a malware affecting Linux system.

The company found a cryptocurrency miner KORKERDS’s hidden activity from Linux users extremely suspicious and started investigation, where they found malware, later called as Coinminer.Linux.KORKERDS.AB, and its rootkit component Rootkit.Linux.KORKERDS.AA. The way of infection will be investigated very soon, there is already some information that the malware may get installed onto computer through a plugin or downloaded software. More technical aspects are described in the report.

The company explains:

“This makes it difficult to detect, as infected systems will only indicate performance issues. The malware is also capable of updating and upgrading itself and its configuration file.”

What is worth to mention is that such operating systems as Mac OS and Linux are considered to be immensely secured, thus, it is hard to integrate any file without users’ consent. The malicious mining software seems to be a built-in plugin, where a user gives an administrator consent to install anything.

Trend Micro provided some Indicators of Compromise (IoCs) to prevent users to be affected: (Editor’s Note: Indicator of compromise (IOC) — is an artifact observed on a network or in an operating system that with high confidence indicates a computer intrusion. Typical IOCs are virus signatures and IP addresses, MD5 hashes of malware files or URLs or domain names of botnet command and control servers. Source: https://en.wikipedia.org/ )

Related hashes (SHA-256):

  • cdd921a5de5d5fffc51f8c9140afa9d23f3736e591fce3f2a1b959d02ab4275e (Trojan.Linux.DLOADER.THAOOAAK)
  • baf93d22c9d1ae6954942704928aeeacbf55f22c800501abcdbacfbb3b2ddedf (Coinminer.Linux.KORKERDS.AB)
  • 0179fd8449095ac2968d50c23d37f11498cc7b5b66b94c03b7671109f78e5772 (Coinminer.Linux.KORKERDS.AA)
  • 023c1094fb0e46d13e4b1f81f1b80354daa0762640cb73b5fdf5d35fcc697960 (Rootkit.Linux.KORKERDS.AA)

Related malicious URL:

  • hxxps://monero[.]minerxmr[.]ru/1/1535595427x-1404817712[.]jpg

We want to remind you, no matter how secure your computer is, in your opinion, it still may be affected by professional cryptohackers. Thereby, if you find any suspicious file or plugin, please, read the following article or consult service centre.

What Is Hidden Mining, Why Is It Dangerous and How to Delete the Virus?

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Crypto Master Minds That Made It Into Forbes’s 30 Under 30

One of the most famous editions in the world, Forbes, came out with its annual rating of the most influential people under the age of 30 in different spheres of activity, including healthcare, music, art, retails and many others. This time the section of “finance” was replenished with a couple of blockchain and crypto personalities, namely:

1. JB Rubinovitz (26) is a crypto entrepreneur whose goal is to incorporate crypto mining as a way to provide bails for arrested people.

2. Olaoluwa Osuntokun (25) is one of the founders and a Chief Technical Officer of the company Lightning Labs. He raised $2.5 million to develop Bitcoin as a fully usable means of payment.

3. Hunter Horsley (28) is a CEO of the company Bitwise Asset Management. His firm specializes in creating crypto indexes.

4. Nader Al-Naji (26) and his company Intangible Labs are currently working on a concept of a cryptocurrency that could easily replace the usual banks.

We remind you:

Forbes Launches Its Own Version of the CoinMarketCap

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