What is a single mining machine (what is a single coin mining)?

What is a single mining machine? Why do mining?

The principle of a single coin mining machine is that each person has computing power and resources. The operation mode of a single coin mining machine is similar to that of a regular ASIC device, so different hardware components (such as CPU, GPU, etc.) are needed during the mining process, which allows miners to run multiple machines at the same time: S9Mining (old version M30T + Ant S19Pro).

Due to the design characteristics of the S9 mining machine, it has strong flexibility and can customize its own chips according to specific needs without relying on special design, which greatly reduces costs. However, for Bitcoin, using S9 mining machines is not safe; on the contrary, it provides a new solution: a single mining pool-single mining field-dual centralization management mode-allows users to participate in mining and profit without relying on other third parties.

Currently, most blockchain games use a “hybrid” approach to distribute mining rewards. But a single mining machine does not do this. For example, the PoW mechanism in Ethereum 2.0 divides mining fees into two parts, one of which is directly used to incentivize node maintenance and requirements for block space. On the other hand, in the PoW system, the percentage of total network computing power depends on the block speed. If a single miner can earn how much when mining 1 GHash/s, the entire mining value may increase tenfold, so a single mining machine can also be seen as a good solution. However, this technology has not yet been supported by mainstream cryptocurrency enthusiasts.

Although the mining development is driven solely by a few people, the single mining machine has not brought much change to the mining industry because a single miner is only responsible for processing transactions or executing computing tasks without any additional income. This situation leads to competition among miners. When someone is unwilling to bear more operating costs, they will choose to join another miner’s shutdown and interact with them to obtain more profits. This can have serious consequences and even lead to the closure of some companies in the industry. However, even large mining farms are trying to cope with such challenges, and companies such as Bitmain and Canaan are already offering services, including several listed companies such as Bitmain actively promoting related businesses. In addition, some companies are also considering launching their own mining machines for customer testing. These companies are now ready to go public, and their goal is to launch the motherboard or futures market in the first half of 2019.

What is single coin mining?

Editor’s note: This article is from Ethereum enthusiasts (ID: ethfans), author: AustinGriffith, translation & proofreading: Min Min & Ajian, Odaily Planet Daily authorized reprint.

Single coin mining is a relatively new concept, which is characterized by not being limited to all resources owned by any node in a specific blockchain network. This approach is very different from traditional mining pools or exchanges. For example, you need to hold ETH to pay for electricity or transaction fees; you can deposit BTC into the token balance and transfer amount in the smart contract, which can be used as liquidity mining funds; you can also earn income by pledging USDT, DAI, USDC, BNB, and use them in other DeFi applications on the chain. However, there is currently no simple way to implement single coin multi-mining-that is, mining a single asset (including LP). These products can provide users with various forms of services:

-Use the same hardware/software/system for dual-coin exchange

-Choose different block sizes (maximum) to support exchanges between multiple accounts

-Set how much new tokens each account can add

Another advantage of single coin mining is that it does not rely on external funding from all these participants, such as no collateral (such as ETH) when trading or proposing new assets on Uniswap. If users want to earn more returns from their idle assets, they need to buy some new native assets to join this pool and maintain a certain proportion of wallet locked assets. This may not be the case for those who have not received staking rewards because most people are not allowed to try it.

Therefore, we can use a working mode called “multi-worker”. Single coin weighted average cost mechanism (MultiplierFee system): the bidding when the mining machine is running is proportional to the value of the mined token, when the unit price is higher than the market price, mining begins. However, in order to allow miners to rebalance miners based on the pre-set price, each adjustment is calculated based on a fixed cost, so that single coin miners cannot afford high network congestion and expensive gas fees. At the same time, since single coin miners must comply with certain requirements to become mining farm operators and maintain the stability of the mining farm. The most common situation in single coin cryptocurrency mining is to ensure that miners are willing to invest enough time and energy to complete tasks before mining a single coin, and then consider the current mining situation and future development trends before deciding whether to continue. The second is the mining shutdown based on existing consensus algorithms (such as Ethash algorithm), which is a new solution for Bitcoin mining technology. Miners will benefit from the “mainnet launch” first (such as the PoW proof-of-work mechanism), so they can directly control the security of the entire system. In addition, single coin mining also helps to avoid losses caused by network failures, especially risk management for mining machines.

The third situation is due to poor network performance (such as TPS lower than 1 confirmation time) and the possibility of high gas fees (such as block validator delays); the last situation is that miners need to bear a potential problem with a large amount of energy consumption.