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what data speed is required for mining bitcoin

By using our site, you acknowledge that you have read and understand our Cookie Policy , Privacy Policy , and our Terms of Service. I'm looking for a ballpark number for the on going requirements, after the initial blockchain download.

Each work unit requires about bytes out and about bytes back. So that's bits per second out and about 2, bits per second back. Essentially, zero. Solo mining is a bit harder to estimate. You will need to receive and relay all new blocks as they are discovered, you will need to receive all transactions that are relayed by nodes you connect to. You can heavily limit the number of other nodes you are willing to connect to, but this will impact your stale shares level and may reduce your transaction fee income.

I measured the bandwidth usage of the client with 60 connections you can drop down to 8 if you want and made sure my sample included discovering a block.

The inbound average bandwidth was 12Kbps 1. So that should give you an idea what solo mining would be like. For multiple rigs, there is no adjustment in the solo mining cases. All the rigs can be configured to query the single client. The client's bandwidth requirements will be the same.

However, there is a change in the pool mining case. When a new block is discovered, each miner will need a new work unit immediately since its existing unit is stale.

This happens on average about every 10 minutes. Effectively, increase the bandwidth requirements by. Note that if you run more than one instance of the mining program on a rig, count it as more than one rig. Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs. Listen now. Home Questions Tags Users Unanswered. What are the bandwidth requirements of a mining rig? Ask Question. Asked 8 years, 3 months ago. Active 3 years, 11 months ago. Viewed 34k times.

Mocky Mocky 1 1 gold badge 7 7 silver badges 11 11 bronze badges. Notice that the bandwidth usage is basically insignificant in both cases. David Schwartz David Schwartz Great info, very specific, thank you. My interest is in knowing the number of rigs my current connection could support, and also the feasibility of using cell phone tethered internet.

This answers that for me. I updated my answer to be explicit about how multiple rigs affect things. If its useful I mined on remote tether with 7. Are these numbers accurate today? For multiple rigs mining to a pool, to decrease bandwidth usage one can run a stratum proxy locally that connects directly to the pool, and each miner then connects to the proxy.

This way, each rig will only need to receive one work update per new block. One easy to use proxy for this is Slush's found here: mining. Sign up or log in Sign up using Google. Sign up using Facebook. Sign up using Email and Password. Post as a guest Name.

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what data speed is required for mining bitcoin

From Start to Finish: Bundle Transactions, Validation, Proof of Work, Blockchains and the Network

Bitcoin mining is the validation of transactions that take place on each Bitcoin block. The decentralized nature of Bitcoin means that miming are broadcasted to the peer-to-peer network and once broadcasted, needs to be verified, confirming that the transaction is valid and then having the transaction recorded on the public transaction database, which is known as the Bitcoin blockchain. Miners basically are the people involved in the processing and verifying transactions before then recording the transactions on the Bitcoin blockchain. Computers are used to include fof transactions onto the Bitcoin exchange and while computers will find it relatively easy to complete the verification process, the process becomes more difficult as computer capability becomes more sophisticated with faster processing speeds. Bitcoin protocol requires those looking to include additional blocks of transactions on the Bitcoin blockchain to provide proof that the user expanded bitcoln scarce resource, requirrd the case of mining being the processing power of the computers used for the verification process. Miners compete with everyone on the peer-to-peer network to earn Bitcoins. The Bitcoin network is self-evolving, to ensure that the time taken for a miner to win a block is steady at approximately 10 minutes.

System Requirements

Bitcoin is an ever-growing phenomenon which has gained a considerable number of followers over the past several years. One of the biggest and most important questions that many have is how exactly this cryptocurrency is made. Despite the name, Bitcoin mining does not actually have much to do with the traditional form of mining. Instead, mining is the way in which transactions in Bitcoin are confirmed and added into the public ledger, or the blockchain system; new Bitcoins are created as a byproduct of this process. The miner who completes the puzzle first can be the one to place the next block within the blockchain and receive BTC tokens as a reward.

what data speed is required for mining bitcoin

Crypto Mining Bandwidth

Cryptocurrency mining is painstaking, costly and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because requirer the fact that miners are rewarded for their work with crypto reqkired.

And if you are technologically inclined, why not do it? However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin throughout, we'll use "Bitcoin" when referring to speec network or the cryptocurrency as a concept, and "bitcoin" when we're referring to a quantity of individual tokens.

The primary draw for many Bitcoin miners is the prospect of being rewarded with valuable bitcoin tokens. That said, you certainly don't have to read article a miner to own cryptocurrency tokens. An example of the latter is Steemitwhich is kind of like Medium except that ror can reward bloggers by paying them in a proprietary cryptocurrency called STEEM.

STEEM can then be traded elsewhere rdquired bitcoin. The bitcoin reward that miners receive is an incentive which motivates people to assist in the primary purpose of mining: to support, legitimize and monitor the Bitcoin network and its blockchain.

Because these responsibilities are spread among many sperd all over the world, bitcoin is said to be a "decentralized" cryptocurrency, or one that does not rely on a central bank or government to oversee its regulation. Miners are getting paid for their work as auditors. They are doing the work of verifying previous bitcoin transactions. By verifying transactions, miners are helping to prevent the " double-spending problem.

Double spending is a scenario in which a bitcoin owner illicitly spends the same bitcoin twice. If you were to try to spend both the real bill and the fake one, someone that took the trouble of looking at both datw the bills' serial numbers would see that they were the same number, and thus one of them had to be false.

What a bitcoin requireed does is analogous to that—they check transactions to make sure that users have not illegitimately tried to spend the same bitcoin twice.

This isn't a perfect analogy—we'll explain in more detail. Once a miner has verified 1 MB megabyte worth of bitcoin transactionsknown as a "block," that miner is eligible to be requred with a quantity of bitcoin more about the bitcoin reward below as.

The 1 MB limit was set by Satoshi Nakamoto, and is a matter of controversy, biycoin some miners believe the block size should be increased to accommodate more data, which would continue reading mean that the bitcoin network could process and bitcoin automation transactions more click to see more. It depends on how much data the transactions take up.

To earn bitcoins, you need to meet two conditions. One is a matter of effort; one is a matter of luck. This process is also known as proof of work. The good news: No advanced math or computation is involved. You may have heard that miners are solving difficult mathematical problems—that's not exactly true.

It's basically guesswork. The bad news: It's guesswork, but with the total number of possible guesses for each of these problems being on the order minint trillions, it's incredibly arduous work. In order to solve a problem first, miners need a lot of computing power. If you want to estimate how whaf bitcoin you could mine with your mining rig's hash rate, the site Cryptocompare offers a helpful calculator. In addition to lining the pockets of miners and supporting the bitcoin ecosystem, mining serves another vital purpose: It is the only way to release new cryptocurrency into circulation.

In other words, miners are basically "minting" currency. For example, as of Nov. In the absence of miners, Bitcoin as a network would still exist and be usable, but there would never be any additional bitcoin.

There will eventually come a time when bitcoin mining ends; per the Bitcoin Protocol, the total number of bitcoins will be capped at 21 million. Aside from the short-term bitcoin payoff, being a coin ks can give you "voting" power when changes are proposed in the Bitcoin network protocol.

The rewards for bitcoin mining are halved every four years dzta so. When bitcoin was first mined inhttp://trackmyurl.biz/trade-bitcoin-etrade-3183.html one block would earn you 50 BTC.

Inthis was halved to 25 BTC. Bythis was halved again to the current level of In aboutthe reward size will be halved again to 6. As of the time of writing, the reward for completing a block is If you want to keep track of precisely when these halvings will occur, you can consult the Bitcoin Clockwhich speex this information in real time. Interestingly, the market price of bitcoin has, throughout its history, tended to correspond closely to the zpeed cost of mining a bitcoin.

Although early on in bitcoin's history individuals may have been able to compete for blocks with a regular at-home computer, this is no longer the case.

The reason for reqiired is that the difficulty of mining bitcoin changes over time. In order to ensure smooth functioning of the blockchain and its ability to process and verify transaction, the Bitcoin mjning aims to have what is a reddit block produced every 10 minutes or so.

However, if there are one million mining rigs competing to solve the hash problem, they'll likely reach a solution faster than a scenario xata which 10 mining rigs are working on the same problem.

For that reason, Bitcoin is designed to evaluate and adjust the daga of mining every 2, blocks, or roughly every two weeks. Bihcoin there is more computing power collectively working to mine for bitcoin, requjred difficulty level of mining increases in order to keep block production at a stable rate.

Less computing power means the difficulty level decreases. To get a sense of just how much computing power is involved, when Bitcoin launched in resuired initial difficulty level was one. As of Nov. All of this is to say that, in order to mine competitively, miners must now invest in powerful computer equipment like a GPU graphics processing unit or, more realistically, an application-specific integrated circuit ASIC.

The photo below is a makeshift, home-made mining machine. The graphics cards are those rectangular blocks with whirring circles. Note the sandwich twist-ties holding the graphics cards to the metal pole. This is probably not the most efficient way to mine, and as you can guess, many miners are in it as much for the fun and challenge as for the money.

The ins and outs of bitcoin mining can be difficult to understand as is. And there is no limit to how many guesses they. Let's say I'm thinking of the number There is no "extra credit" for Friend B, even though B's answer was closer to the target answer of Now imagine that I pose the "guess what number I'm thinking of" question, but I'm not asking just three friends, and I'm not thinking of a number between 1 and Rather, I'm asking millions of would-be miners and I'm minihg of a digit hexadecimal number.

Now you see that it's going to be extremely hard to guess the right answer. In Bitcoin terms, simultaneous answers occur frequently, but at the end of the day, there can only be one winning answer.

Typically, it is the miner who has done the most work, that s, the one that verifies the most transactions. The losing block then becomes an " orphan block. Miners who successfully solve the hash problem but who haven't verified the most transactions are not rewarded with bitcoin. The number above has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of the alphabet. Why is that?

To understand what these letters are doing in the middle of numbers, let's unpack sata word "hexadecimal. As you know, we use the "decimal" system, which means it is base This, in click, means that every digit of a multi-digit number has 10 possibilities, zero through nine. In a hexadecimal system, each digit has 16 possibilities. But our numeric system only offers 10 ways of representing numbers zero through nine.

That's why you have to stick letters in, specifically letters a, b, c, d, e and f. If you are mining bitcoin, you do not need to calculate the total value of that digit number the hash. I repeat: You do not need to calculate the total value of a hash. Remember bitcooin ELI5 analogy, where I wrote the number 19 on a piece of paper and put it in a sealed envelope? In bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash.

What miners are wgat with those huge computers and dozens of cooling fans is guessing at the target hash. A nonce is short for "number only used once," and the nonce is the key to generating these bit hexadecimal numbers I keep talking. In Bitcoin mining, a nonce wjat 32 bits in size—much smaller than the hash, which is bitccoin.

In theory, you could biycoin the same goal by rolling a sided die 64 times to arrive at random numbers, but why on earth would you want to do that? The screenshot below, taken from the site Blockchain. You are looking at a requirev of everything that happened when block was mined.

The nonce that generated the "winning" hash was The target hash is shown on top. The term "Relayed by Antpool" refers to the fact that this particular block was completed by AntPool, one of the wyat successful mining pools more about mining pools. As you see here, their contribution to the Bitcoin community is that they confirmed transactions for this block. If you really want to see all of those transactions for this block, go to this page and scroll down to the heading "Transactions.

There is no minimum target, but there is a maximum target set by the Bitcoin Protocol. No target can be greater than this number:. Here are some examples of randomized hashes and the requirec for whether they will lead to success for the miner:. You'd have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine bktcoin computing power and split the mined fod.

Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings.

Do You Need a Fast Internet Connection to Mine Bitcoin?

An analysis of how Bitcoin is obtained and what mining entails.

Partner Links. Sign up using Facebook. Datta Bitcoin. Please enter your name. In addition to securing your wallet, you also need to keep your backups secure. Anyone who gets access to them can also steal your bitcoins. Bitcoin miners across the world have been performing calculations at an average While bandwidth is not a major issue, we glanced at the packets per second figures. We advise that you check whether your Internet connection is subjected to such limitations and monitor your bandwidth use so that you can stop Ddata Core before you reach your upload limit. Spesd is no secret that crypto mining operations are gobbling up data center space. Understanding Block Time in Cryptocurrency Block time in the context of cryptocurrency is the average amount of time it takes for a new block to be added to a blockchain. Bitcoin Basics.

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